Greece introduces new framework to protect primary residences from debt enforcement

As of today, September 21, 2026, a new enhanced framework for protecting primary residences through the Out-of-Court Debt Settlement Mechanism has come into force in Greece.

The new regulation responds to the longstanding demand from citizens for stronger protection of primary residences while introducing greater flexibility for hundreds of thousands of debtors, CE Report informs via the Ministry of National Economy and Finance of Greece's official website.

More specifically, borrowers can now, when submitting their application through the electronic platform of the out-of-court mechanism, request a debt settlement that protects their primary residence by separating it from the rest of their real estate assets.

Under the new accelerated settlement procedure, they can secure greater debt write-offs and lower monthly instalments, as only the value of the primary residence is taken into account when calculating the settlement.

In return, the debtor agrees to the voluntary liquidation of their other assets through a simplified auction procedure.

For vulnerable and eligible debtors, creditors are required to submit this alternative settlement proposal, which provides for the protection of the primary residence and the liquidation of other properties.

In all cases, the debtor may accept or reject the counterproposal.

If they reject it, they will receive the standard out-of-court settlement proposal, without the liquidation of their other properties.

Once the restructuring agreement is formally signed, any act of compulsory enforcement, auction or imposition of precautionary measures against the debtor’s primary residence is expressly prohibited, provided that the settlement terms are respected.

In addition, the agreement itself acquires the status of an enforceable title, ensuring a swift, clear and fully consensual procedure for all parties.

Under the new regulation, the protection of citizens’ primary residences is now permanently and effectively safeguarded.

At a time when economic challenges require immediate and fair solutions, the new framework combines social sensitivity with a realistic approach to debt settlement.

It thus provides hundreds of thousands of borrowers with a stable second chance to restructure their debts sustainably without fear of losing their homes.

Photo: Pexels (Free Stock Photos)