The new draft law from the Ministry of National Economy and Finance brings changes with immediate practical effects on bank account seizures, as it raises the protected limits for debts owed to the government, banks, and private individuals, while at the same time paving the way for the lifting of seizures for those who pay part of their debt.
The most significant provision (Article 6 of the omnibus bill) concerns the exemption from seizure for debts owed to the State, which is increased from 1,250 to 1,600 euros per month for each individual and for one declared account per financial institution. This means an additional protection of 350 euros per month—or 4,200 euros per year—for those whose accounts have been frozen by the tax authorities.
As for debts owed to banks and other private individuals, however, the exempt amount in an individual account increases from 1,500 to 1,600 euros. The benefit amounts to 100 euros per month or 1,200 euros per year.
Similarly, for joint household accounts, the amount exempt from seizure for debts between private parties (banks, suppliers, etc.) increases from 2,000 to 2,200 euros per month. This change equates to an additional 200 euros in protection per month, or up to 2,400 euros annually.
Separate IBAN declaration to the Independent Authority for Public Revenue (AADE) and to a bank
The new seizure-exempt limits will take effect after the omnibus bill is passed, which is expected in late June.
However, this protection is not granted automatically. The provision stipulates that for protection against debts owed to the government to take effect, the bank account (IBAN) must have been electronically registered with the Independent Authority for Public Revenue (AADE) by the debtor as the sole exempt account. If there is an account used for salary, pension, or social security benefit payments, only that account may be designated.
Additional “breathing room”
At the same time, along with other provisions, the bill also establishes the possibility of lifting a bank account garnishment, provided that the debtor pays 25% of the principal debt for which the garnishment was imposed, along with the corresponding surcharges and interest. This provision also applies to existing freezes, offering a way out for debtors whose accounts have been frozen for a long period of time.
In this way, the suffocating restrictions that seizure imposes on debtors’ daily lives are lifted. However, this relief is granted only once to each debtor, thereby preventing abusive repeat claims. In addition, exceptions are provided for cases where the debtor has filed for bankruptcy or is subject to insolvency proceedings.
The omnibus bill also introduces a separate provision regarding financial assistance for special education, which is explicitly designated as non-assignable, unseizable, and not subject to set-off against debts owed to the State, social security funds, local government entities, and credit institutions, notwithstanding any general or specific provision.
