Greece’s highest administrative court has tightened restrictions on government seizures of debtors’ homes, in a ruling that could force tax authorities to reconsider pending property auctions and give homeowners new grounds to challenge foreclosure proceedings.
In decision 1404/2026, the Council of State ruled that the Independent Authority for Public Revenue (AADE), Greece’s tax collection agency, cannot legally seize a debtor’s sole residence without first demonstrating that it has investigated alternative assets that could be used to recover outstanding debts.
The ruling strengthens protections for homeowners facing enforcement action over unpaid taxes and other government liabilities, although it stops short of introducing a blanket ban on auctions of primary residences.
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The case involved a maisonette in Moschato, a suburb of Athens, that authorities sought to auction over €142,917 in overdue debts owed by one of its owners.
The court blocked the proceedings, citing constitutional protections for housing and the principle of proportionality, which requires public authorities to avoid excessively burdensome enforcement measures when less intrusive alternatives are available.
In its reasoning, the court emphasized that housing is fundamental to human dignity, personal security and family life. Consequently, tax authorities must establish that they have adequately explored less severe means of collecting outstanding debts before targeting a debtor’s only home.
The decision could have implications for Greece’s electronic property-auction system, where residential properties are already scheduled for sale through February 2027.
Among the listed properties are two apartments in Peristeri, western Athens, measuring 88 and 81.5 square meters, with starting bids of €97,500 and €88,400, respectively. Both auctions are scheduled for Feb. 17, 2027.
Other listings include a 114-square-meter apartment in Ilioupoli with a starting price of €180,000, an 80-square-meter apartment near Plato’s Academy priced at €159,000, and a property in Agia Paraskevi listed at €260,000.
The auction notices don't establish whether these properties are their owners’ sole residences, meaning the ruling doesn't automatically invalidate the scheduled sales.
However, debtors who can demonstrate that authorities failed to investigate alternative means of collection may now have stronger grounds to challenge seizures in court.
Under applicable procedural rules, such challenges may be brought even after an auction has been scheduled.
