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Greek Supreme Administrative Court Holds 20-Year Statute of Limitations for Social Security Debts is Unconstitutional — Orbitax Tax News & Alerts

The Greek Supreme Administrative Court (Council of State) has issued a decision regarding the 20-year statute of limitations for the payment of social security debts to social security institutions included in the Unified Social Security Fund (EFKA). As provided in an overview of the decision published 5 November 2021, the Court found that the 20-year statute of limitations established in Law 4387/2016 is unconstitutional because it is contrary to the constitutional principles of proportionality and legal certainty.

Having found the 20-year statute of limitations to be unconstitutional, it is noted that there is a gap in legislation since there is no pre-existing law that regulates in a unified way a statute of limitations, which cannot be tolerated under the constitution since the principles of legal certainty require the provision of a limitation period. As such, the Court found that a 10-year statute of limitations must be applied, which is considered to be a reasonable limitation period for payment and was used for the largest contribution fund prior to the establishment of the EFKA.