Greece’s Independent Authority for Public Revenue (AADE) has introduced a revised framework for issuing tax compliance certificates—official documents confirming a taxpayer’s up-to-date status with tax obligations. The updated rules tighten requirements in three key areas: real estate transfers, receipt of public funds, and offsetting claims against tax debts.
Automatic Offsetting of Public Payments Against Tax Debts
Under the new framework, if a taxpayer requests a tax compliance certificate while holding overdue or otherwise confirmed tax liabilities, AADE may automatically offset any public funds owed to them—such as refunds or subsidies—against those debts. This offset applies not only to personal liabilities but also to inherited tax debts and obligations linked to the income tax liability of the taxpayer’s spouse.
Stricter Rules for Real Estate Transfers
Special attention is given to property sales or establishment of in rem rights when the taxpayer has overdue tax debts exceeding €50,000 that are under enforcement suspension. In such cases, a withholding mechanism applies: generally, 50% of the sale price is withheld—provided it does not fall short of the property’s objective value. The withholding amount may increase up to the full amount of the outstanding debt, depending on circumstances.
Liability of Managers, Shareholders, and Partners
An official circular issued by AADE Director Giorgos Pitsilis clarifies the treatment of individuals jointly liable for corporate tax debts. If their shareholding during the last two years of involvement was no more than 5% in non-listed companies—or 0.5% in listed ones—and the company’s debts are either under a payment plan or in enforcement suspension, those liabilities are excluded from withholding calculations. However, if their stake exceeds those thresholds, the debts are taken into account.
For debts under a structured repayment plan, withholding ranges from 7% to 70% of the sale price; for debts under enforcement suspension, it ranges from 7% to 50%, depending on the guarantees provided.
When a Debt Certificate Replaces a Compliance Certificate
In several cases, AADE will issue a debt certificate instead of a tax compliance certificate—particularly when overdue debts remain unresolved, or when the required withholding exceeds the transaction’s sale price. This certificate details all outstanding liabilities and allows the transaction to proceed only under specific, pre-approved conditions.
In cases of joint liability, settled corporate debts do not appear on the debt certificate if the individual’s shareholding falls within the specified limits—unless the taxpayer explicitly requests otherwise.