The government has introduced new measures to help more than 1.5 million taxpayers to reduce overdue debts to the state. Key interventions include a regulation of up to 72 instalments for old debts, expansion of the Extrajudicial Mechanism and easier lifting of bank account seizures.
More specifically:
Settlement of 72 instalments
This concerns debts that became overdue by 31/12/2023 and have not been settled. To qualify, a person must have either paid or settled debts incurred from 1/1/2024 onwards through the fixed arrangement (24-48 instalments). Interest accrued from 2024 until the application can be included in the arrangement. The interest rate is 5.84% per annum, while the minimum instalment is set at EUR 30.
Those who missed a previous arrangement for recent debts can rejoin to take advantage of the new scheme.
Inclusion offers significant benefits, including:
- Suspension of criminal prosecutions or enforcement of sentences for large debts.
- Suspension of enforcement measures (seizures, auctions, etc.).
- Ability to obtain tax and insurance information (up to 1 month).
Judicial Mechanism
It now covers debts of €5,000 or more (instead of €10,000). The arrangement is adjusted based on income and assets, offering up to 240 instalments or more in some cases. It may also provide for a “haircut” of the debt. The interest rate is set at 3%.
Cancellation of account foreclosure
The bank account attachment is lifted if the debtor pays at least 25% of the basic debt and settles the remaining debts. This option is available only once; in case of new debts, full payment is required for a new lifting.
