AADE: Unrecoverable Tax Debts Reach €10 Billion

An additional €10 billion in overdue tax debts will be classified as unrecoverable by the end of 2025, according to AADE. These are liabilities that have little to no chance of being collected. The debts involve bankrupt businesses, deceased individuals without heirs, and those with no assets. Out of the total €108.4 billion in overdue debts owed to the state, approximately €26.3 billion have already been marked as unrecoverable. According to the Public Revenue Collection Code (KEDHE), a debt is considered unrecoverable if all possible means of locating assets have been exhausted, no property or claims against third parties exist, and an objective inability to collect has been confirmed. Even if some assets exist, the debt can still be marked as unrecoverable if their value does not exceed 5% of the principal debt or €100,000 for real estate and €30,000 for movable assets. Once classified as unrecoverable, the debt remains monitored for 10 years, during which any newly discovered assets could revive the debt. During this period, debt forgiveness is suspended, tax certificates are not issued, and bank accounts remain frozen. However, the state retains the right to pursue collection should new information arise.