Acknowledgment of debt (Greece)

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A debtor's written statement in Greece acknowledging owing a creditor a set sum: what for, by when and how it will be paid. The Greek Civil Code requires writing (art. 873), and the acknowledgment interrupts limitation (art. 260). With a certain sum, a fixed due date and both signatures, it is the private document a payment order is sought on. It also says who pays the 3.6% digital transaction duty where it is owed: the debtor.

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Common questions

Does an acknowledgment of debt have to be in writing in Greece?

For the acknowledgment under art. 873 of the Greek Civil Code, which creates a self-standing obligation, yes: the debtor's declaration must be in writing, or it is not valid. A mere confirmation of an existing debt needs no special form, but without a document it is hard to prove. The debtor signs the document; the creditor's signature as well shows the acknowledgment was accepted and makes the document fuller proof for a payment order.

What happens to limitation when a debtor in Greece acknowledges the debt?

It is interrupted (art. 260 of the Greek Civil Code): the time that had run until the acknowledgment no longer counts, and a new period begins (art. 270). The Civil Code's general period is 20 years (art. 249); interest and the instalments repaying capital lapse in 5 years, counted from the end of the year in which the claim arose (arts. 250(15) and 253). An acknowledgment made before the period ends keeps the claim alive.

Is the Greek digital transaction duty owed on an acknowledgment of debt?

An acknowledgment under art. 873 of the Greek Civil Code — the abstract kind, which creates an obligation independent of its cause — bears the digital transaction duty, 3.6% between private persons, paid by the debtor. If the document merely confirms an existing debt, or concerns a debt on which the duty has already been paid — a loan, say — ask an accountant or AADE whether it is owed. The document only says that, where the duty is owed, the debtor bears it.