Greece to protect primary residences in out-of-court settlements

A new mechanism within the Greek out-of-court settlement process will allow debtors to protect their primary residence by separating it from their other real estate assets. Effective from September 21, 2026, this regulation enables debtors to retain their main home by restructuring debts with lower monthly installments, while secondary properties such as holiday homes or plots of land may be auctioned to satisfy creditors.

Under the current system, the total value of a debtor's entire real estate portfolio is considered when settling debts with the state, banks, and servicers. Under the new regime, creditors can submit counter-proposals to sell non-primary assets while excluding the main residence from the calculation of monthly installments. This aims to create more manageable repayment terms for the debtor.

Certain conditions apply to this protection. If a property is held in undivided shares with a co-debtor or guarantor, that individual must also submit the application and sign the restructuring agreement. Once the agreement is signed and maintained, creditors are prohibited from accelerating forced executions, taking security measures, or registering new mortgages against the primary residence, though existing mortgages and pre-notations remain in effect.