Municipal fees: Debt relief for non-electrified properties
Property owners with non-electrified buildings will benefit from a new regulation that cancels municipal fee debts and allows retroactive debt clearance. This provision is part of the Capital Market Enhancement Bill, which is currently under public consultation.
According to Article 212 of the bill, owners of properties where electricity has been disconnected will be exempt from unpaid municipal cleaning and lighting fees. To qualify, they must submit a sworn statement and an official certificate from the relevant network operator confirming the electricity disconnection during the specified period. If these debts are already part of a payment plan, the remaining balance will be written off upon request.
However, the regulation specifies that any municipal fees already paid by property owners will not be refunded.
To streamline the process, the Ministry of the Interior and the Ministry of Digital Governance are introducing an automated system that will automatically halt municipal fee charges from the moment a property's electricity supply is cut, eliminating the need for owners to submit declarations to their municipalities.
Deadline for 60-Installment Debt Settlement Approaching
Meanwhile, residents with outstanding municipal debts have until March 14, 2025, to apply for the 60-installment payment plan. This settlement applies to all debts owed by individuals and businesses to municipalities and municipal entities (such as Municipal Water and Sewerage Companies - DEYA) that were confirmed by October 31, 2024.
For vulnerable debtors, the regulation allows for payments without penalties, interest, or fines—offering reductions of up to 95%. Installments are monthly and equal (except for the last one) and must be at least €50 per month.
The first installment or a lump-sum payment must be made within three working days after approval, or the settlement will be automatically canceled. Subsequent payments are due on the last working day of each month, without additional reminders.
Late payments incur a 5% monthly surcharge on the overdue amount. If a debtor fails to pay two consecutive installments or three in total, the settlement is revoked, and the outstanding balance, including any previously waived fines and interest, becomes due again.
If a debtor has already paid 5% of their total debt (for amounts up to €5,000) or 10% (for amounts over €5,000), the municipality will lift any tax clearance restrictions. However, if payments are delayed, these restrictions may be reinstated. The same conditions apply to halting enforcement measures, such as asset seizures. If the settlement is lost, enforcement actions will resume.
