Debts to municipalities: AAΔΕ stops arrests through an extrajudicial mechanism

Independent State Revenue Administration (ΑΑΔΕ) introduces an actual “stop” to measures of forced collection of debts to municipalities and legal entities of local government – even in cases where arrest procedures have already been launched.

Extension ex-trial mechanism for debts to local governments opens a new “window of protection” for thousands of citizens and businesses with accumulated obligations to municipalities: from fees for garbage collection and lighting to fines, violations and rental payments for municipal real estate.

Who can benefit

The ex-trial mechanism may include debts whose total amount is exceeds 10,000 euros. As a rule, it is precisely such obligations that are already in the field of view of municipal services and are often accompanied by enforcement measures.

According to the new position of ΑΑΔΕ, the presence of already imposed arrests is not an obstacle to include the debt in the extra-judicial settlement procedure. Moreover, the procedure itself suspends arrests.

In practice, this means that persons whose bank accounts, wages or other property have been seized at the initiative of the municipality or its legal entities can apply for an ex-prejudicial mechanism. Subject to compliance with the payment schedule and execution of the restructuring agreement, enforcement measures are suspendedand the arrests already introduced are removed.

What is changing and on what basis

Formally, the provisions extending the protection of the ex-pre-trial mechanism to debts to municipalities are in force from the moment the law is published in Official Gazette — January 23, 2026 (ΦΕΚ Α΄9/23-1-2026, articles 35 and 46 of law 5270/2026).

Practical application is provided by the official document of the head of ΑΑΔΕ Georgios Pitsilis (No. 3003 ΕΞ 29-01-2026), which gave direct instructions to tax and municipal services to stop seizure procedures in these cases.

The document explains, in particular, that:

• enforcement measures or interim measures imposed by municipalities do not prevent the filing of an application for ex-judicial settlement;
• the provisions of article 18 of law 4738/2020 on the automatic suspension of enforcement measures after the final submission of the application also apply to municipalities and their legal entities;
• after concluding a debt restructuring agreement, previously taken enforcement measures and interim measures subject to cancellation;
• in the event of termination or cancellation of the restructuring agreement, the municipality has the right to immediately resume enforcement and security measures;
• in all cases, the municipality or its legal entity retains exceptional competence to manage collection measures for debts covered by the mechanism.

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