Wage seizures even for less than 300 euros

In order to recover even a portion of the 42 billion euros in outstanding debts owed ​​by individuals and businesses, the government is threatening borrowers with seizures of wages, pensions, properties and savings. Even those who owe less than 300 euros are at risk of facing seizures, provided that their salaries and pensions are more than 1,000 euros per month.

The recovery measures and the rights of the debtors are included in a detailed guide issued by the ministry of Finance.

1) What enforcement measures will be taken for the unregulated due debt?

At the discretion of the head of the Tax office the following measures will be taken:

a) seizure of claims of the debtor in the hands of others, namely seizure of wages, pensions, rents, subsidies and other income the debtor is entitled to collect from third parties

b) seizure of movable assets of the debtor, whether in their hands or in the hands of third parties. In this context, there could be a seizure of the amounts in bank deposits of debtors

c) seizure of real estate

2) When and under what conditions can the debtor of the State be prosecuted?

When the total debt due to the State exceeds the amount of 5,000 euros and the delay of payment is more than 4 months after the payment deadline.

3) What is the minimum amount of debt to the State, to entities or to third parties for which there will be no coercive measures against the debtors?

No coercive measures will be taken for collection against debtors with outstanding debts to the State, legal persons and third parties, amounting to 300 euros, except from the measure of seizure requirements of the borrowers in the hands of third parties. The regulation does not apply to fines of the Traffic Code and debts in favor of local government agencies.

4) What is the minimum amount for which a seizure of salaries, pensions or insurance aids of State debtors may not be imposed?

The State may not impose a seizure against a debtor, if the amount is up to 1,000 euros per month after the deduction of compulsory contributions. If the amount exceeds 1,000 euros, taking into account the case where the debtor receives them from two or more entities, the seizure of 25% of them is allowed then, but the remaining amount from their whole must not be less than 1,000 euros.

5) Does the seizure report mean there will be an auction as well?

No. After the seizure application for mobile or immobile property, the Tax Office will issue an auction program, which will provide a date within a short period. The debtor may well be allowed to proceed with partial payment of debts or according to the existing legislative regulation, achieve the suspension of the said program. The ownership of a real estate property in auction is transferred to the successful tenderer after the transfer of the report regarding the award to the relevant land registry office. Until then, the ownership of the property remains with the owner of the property.

6) Can there be another seizure on a property for debts to the State, following the seizure imposition by the State or any third party to the same real estate property?

Yes.

7) Is it possible to remove the seizure application and the mortgage of a property for debts to the State?

Yes, after the redemption or cancellation of the debt for which the measure was imposed or after a decision by the competent body in specific, depending on the case, conditions of release.