Greece Offers New Chance for Tax Dispute Settlements with Up to 75% Fine Reductions

Greece is offering taxpayers a new opportunity to settle tax disputes out of court, with the program now extended until December 31, 2026. This initiative allows individuals and businesses to resolve outstanding tax issues and potentially reduce penalties by up to 75%.

The extension, included in a bill from the Ministry of National Economy and Finance, aims to provide a streamlined process away from the courts. Taxpayers who apply to the Out-of-Court Dispute Resolution Committee can finalize their accounts with the tax authorities. The committee has until July 31, 2027, to review applications, with settlement agreements expected by October 31, 2027.

Under the process, the committee reviews the taxpayer's claims and can propose a full, partial, or rejection of the request. If a proposal is made, it includes detailed amounts for principal tax, additional taxes, interest, surcharges, and fines, along with justification. The taxpayer then has five working days to accept the proposal and choose a payment installment plan.

Upon acceptance, a settlement agreement is signed, which becomes an enforceable title. To make the settlement final, the taxpayer must pay at least 30% of the principal tax or 25% of any standalone fine within ten working days. The remaining balance of the principal tax can be paid in 1 to 24 installments. Reductions on additional taxes, interest, surcharges, and fines vary based on the number of installments chosen, ranging from 75% for a single payment to 35% for 21-24 installments.

Failure to adhere to the terms, including missing two consecutive monthly payments or delaying the last two installments, will retroactively cancel the settlement. In such cases, any amounts paid will be considered as partial payment towards the original debt, and the initial assessment will be reinstated.