DEBT MANAGEMENT
Primary residence protection: what tools exist today
· 9 min read · Georgios F. Dionysiou
The primary residence is almost always the first question in every debt case. The answer isn't 'yes' or 'no': it depends on who the creditor is, whether there's a mortgage, what stage the enforcement process is at, and whether the vulnerable debtor criteria are met.
The basic tools in effect
None of these works automatically. All require application, documentation and deadline compliance — and the criteria are adjusted, so they're checked against current amounts at the time of application.
- Settlement through the out-of-court mechanism of Law 4738/2020, which can prevent execution while it's active and being complied with.
- Special protection for vulnerable debtors, with income and asset criteria set by ministerial decisions.
- Possibility of transferring the residence to the designated acquisition entity and leasing it back, with a right of repurchase after the lease period.
- Bilateral negotiation or banking mediation with the financial institution or servicer, when there's room for agreement outside the platform.
The deadlines that determine the case
From the moment an enforcement notice is served or an auction date is set, the time window narrows dramatically. Objections and legal remedies have strict peremptory deadlines, and inclusion in a settlement after the auction date is much more difficult than before.
In practice, the difference between a case that's saved and one that's lost is usually three to six months of delay in the first move.
What we check first in each file
- Who is currently the creditor — bank or servicer — and whether the transfer was legally registered.
- Whether there's a mortgage or pledge and for what amount, relative to the property's market value.
- Whether the property is correctly declared as primary residence in tax filings (E1, E9).
- Whether enforcement documents have been served and which deadlines are already running.
- Whether the current vulnerable debtor criteria are met.
What doesn't protect
Simple inaction doesn't protect: default interest accrues and the debt grows. Nor is transferring the property to a relative a solution — on the contrary, it can be challenged as fraudulent and worsen your position.
Finally, signing a 'settlement' without a viability check often just postpones the problem by a year, on worse terms.
Sources & legislation
Disclaimer — this article is for informational purposes only and does not constitute, nor can it replace, personalized legal, financial or tax advice. The legislation, ministerial decisions, amounts and criteria mentioned may have been amended or repealed after the date of publication; all information must be verified against current provisions (Official Gazette, gov.gr) at the time you make a decision. The outcome of each case depends on its specific factual and legal circumstances, the fund or authority involved, and the applicable provisions at the time. Before deciding or acting on any point in this text, seek a personal assessment from a qualified professional who will examine your own case.