Greece implements strict penalties for unpaid municipal utility debts

Under the new Local Government Code (Law 5314/2026), municipal water and sewage utilities in Greece, including DEYAK in Corfu and DEYAF in Florina, are implementing strict new frameworks for unpaid debts.

According to the law, any debt that remains unpaid and is not part of a formal repayment plan for more than six months after its due date will incur a mandatory 50% penalty. Once these penalties are applied, the total debt will be transferred to the Independent Authority for Public Revenue (AADE) for compulsory collection.

To avoid these penalties and the potential freezing of tax identification numbers (AFM), utilities are urging citizens to settle outstanding balances or enter into repayment programs. In Corfu, DEYAK has modified its existing framework to offer more favorable terms, such as reducing the minimum down payment for residential consumers from 20% to 10%.