Comprehensive Guide to the Permanent Installment Arrangement (Law 4152/2013): 24–48 Installments, Conditions and Interest Rates

1. Eligible Debts

The arrangement covers certified and overdue debts:

• To Tax Offices (DOY)
• Audit Centers
• Customs Authorities

Certified pursuant to the Code for the Collection of Public Revenue (KEDE), the Tax Procedure Code (KFD), and the Customs Code.
All overdue debts not otherwise settled must be included.

2. Available Installments

2.1 Arrangement of 2–24 Installments

For ordinary and self-assessed tax liabilities.

2.2 Arrangement of 2–48 Installments

For debts arising from:

• Tax audits
• Customs audits
• Inheritance tax
• Other non-tax/customs debts

The number of installments is determined based on repayment capacity.
Minimum installment amount: €30.

3. Repayment Capacity Calculation

3.1 Natural Persons

The Tax Administration considers:

• Average income of the last three years, or
• Income of the previous year (if higher).

Progressive coefficients from 4% to 25% apply, with reductions due to dependent children.
In cases of zero-income returns → maximum installments are granted.

3.2 Legal Entities

Gross revenues of the last three years or of the previous year are considered.
Coefficients from 5% to 10% apply proportionally.
In zero-declaration cases → maximum installments are granted.

4. Interest Rate “Freeze”

According to the official Ministry announcement:

• Interest rates on regulated debts remain fixed until 31 March 2025.
• Stabilized at the level applicable on 31 March 2024.
• Retroactive effect from 1 April 2024.

5. Applicable Interest Rates after the “Freeze”

5.1 First Inclusion in Arrangement

• 4.34% for up to 12 installments
• 5.84% for more than 12 installments

5.2 Second Inclusion (after loss of arrangement)

• 5.84% for up to 12 installments
• 7.34% for more than 12 installments

Without the new provision, rates would have increased to:

• 6.68% for 12 installments
• 8.18% for more than 12 installments

These increases reflect upward pressure from European interest rates.

6. Installment Payment – Deadlines

• First installment payable within three working days.
• Subsequent installments payable by the last working day of each month.
• Late payment → 15% surcharge.
• The arrangement is lost upon a second delay or failure to comply with filing/new debt obligations.

7. Benefits of Maintaining the Arrangement

A compliant debtor secures:

• Tax clearance certificate
• Suspension of enforcement measures (except against third parties)
• Exemption from criminal prosecution
• Refund of 25% of interest upon completion

The Permanent Arrangement under Law 4152/2013 remains a stable and reliable facilitation tool for taxpayers and businesses. Proper information and consistent compliance ensure sound tax compliance and avoidance of additional burdens.