The Greek government is moving to overhaul the management of dormant charitable foundations and inactive estates, unveiling a long-delayed draft law that will enter public consultation in the coming days.
The legislation targets some 2,000 foundations and 7,000 estates that have been left idle, with the aim of activating their assets and channeling part of the proceeds into housing support for low-income families.
A special-purpose foundation will be created to serve as the temporary administrator of charitable institutions that have failed to meet their obligations, while also acting as the legal guardian of unclaimed estates until they formally pass to the state. Central to the reform is the establishment of a digital registry system: an Electronic Registry of Charitable Assets and a Platform for Inactive Estates, both linked to existing state databases. Every administrative or financial action will be logged into these registries, ensuring greater oversight and transparency.
The bill also changes how new charitable foundations are established, requiring approval by joint ministerial decision and governed by a standardized regulation. Regular and extraordinary audits will be introduced, and members of foundation boards will face increased accountability. Dormant foundations, meanwhile, will be subject to a formal restructuring process.
One of the government’s priorities is to put real estate holdings to use in support of housing policy and other social initiatives. For inactive estates, the draft law introduces a streamlined administrative procedure, allowing the state to be recognized as the legal beneficiary in cases where no heirs exist. This measure is intended to reduce delays that have long hindered the transfer of assets into public use.
Oversight will shift to a newly established Central Council for Charitable Assets within the Ministry of National Economy, replacing the regional councils currently in place. The special-purpose foundation will be part of the general government structure and will have a five-year leadership mandate. Its president will be appointed by Parliament’s Committee on Institutions and Transparency, while the minister will appoint the board members and the general director.
Finally, the legislation includes tax reforms designed to encourage charitable activity. Active foundations and registered assets will be exempt from income tax, while donations and inheritances directed to charitable institutions will no longer be subject to tax.
