Greece raises non-seizable bank account limit to 1,600 euros for wages and pensions

Greece is raising the protected amount in bank accounts to 1,600 euros, up from 1,250 euros, to shield citizens' wages, pensions, and other income from seizure amid rising private debt. This measure is part of a broader government strategy to manage private debt, which exceeds 240 billion euros, by offering more flexible repayment plans and bolstering the security of bank deposits.

The new regulations are set to benefit over 1.5 million individuals indebted to the tax office, social security funds, and banks. The increase in the non-seizable threshold aims to prevent forced collection measures, such as the seizure of bank accounts and assets. Additionally, debtors will have a one-time opportunity to have their bank accounts released from seizure if they pay 25% of their outstanding debt and arrange a payment plan for the remainder.

To benefit from the increased protection, individuals must declare a single bank account as non-seizable through the Independent Authority for Public Revenue (AADE) online platform using their Taxisnet credentials. This applies to wages, pensions, and other income deposited into the account. For joint accounts, the 1,600-euro protection applies individually to each co-holder, provided they have all declared the same account. Failure to do so could result in partial seizure, as the remaining balance might be considered equally owned by all co-holders.

The government's move aims to provide a financial cushion for vulnerable citizens struggling with debt. By increasing the non-seizable amount and offering a pathway to lift existing seizures, authorities hope to encourage compliance with debt repayment obligations while preventing undue hardship. The measures are designed to balance the state's need to collect revenue with the protection of basic income for its citizens.