Understanding AFM Deactivation: What Expats and Investors Need to Know

For anyone living, working, or investing in Greece, the AFM, or Greek tax identification number, is an indispensable tool. It is not merely a tax number but a key to accessing a variety of essential services and conducting financial transactions. Whether you are opening a bank account, signing a lease, or purchasing property, an active AFM is required. Without it, navigating Greek bureaucracy becomes nearly impossible, which can significantly impact your ability to live or invest in Greece efficiently.

Understanding the circumstances that lead to the deactivation of an AFM is crucial for maintaining compliance with Greek regulations. One primary reason for deactivation is prolonged inactivity. If an AFM remains unused for an extended period, the Greek tax authorities may deactivate it to keep their records current and accurate. Another common reason is non-compliance with regulatory requirements, such as failing to file required tax returns or not updating personal information with the authorities. Additionally, any discrepancies or issues related to tax compliance can trigger a deactivation.

The deactivation of an AFM can have serious implications for expats and investors in Greece. Without an active AFM, you will find it challenging to conduct any financial transactions, including banking and real estate activities. Legal processes, such as signing contracts or dealing with inheritance issues, can also be affected. This can lead to significant delays and potential financial losses. Moreover, reactivating a deactivated AFM can be a cumbersome process, requiring multiple visits to Greek tax offices and dealing with bureaucratic hurdles.

While Ellytic doesn't handle AFM deactivation directly, many prerequisites — like obtaining your AFM or getting documents certified — are exactly what Ellytic streamlines. Our Identity Starter package includes AFM registration and essential document translations, ensuring you are set up correctly from the start. If you face bureaucratic challenges, our team can guide you through related processes efficiently. Learn more about how Ellytic can assist at ellytic.com.

Maintaining an active AFM is essential for anyone living or investing in Greece. By understanding the conditions that could lead to its deactivation, you can take proactive steps to ensure compliance and avoid potential disruptions. Regularly updating your information and meeting all tax obligations are key strategies. Moreover, leveraging services like those offered by Ellytic for AFM registration and document translations can provide peace of mind and streamline the process, allowing you to focus on your life and investments in Greece. By staying informed and prepared, you can navigate Greek bureaucracy with confidence.

Understanding how Greek AFM regulations interact with those of other countries can significantly impact expats and investors who maintain financial ties across borders. This section explores the intricacies involved when the Greek AFM system interfaces with German tax regulations, focusing on cross-border compliance and potential pitfalls.

When relocating from Germany to Greece, or maintaining financial activities in both countries, it's crucial to consider the implications of maintaining an active AFM alongside a German Steuerliche Identifikationsnummer (Tax Identification Number). The Bundeszentralamt für Steuern (BZSt) in Germany and the Greek Independent Authority for Public Revenue (IAPR) are the primary regulatory bodies managing these tax identifiers.

One of the key issues is the risk of dual residency, which can lead to tax obligations in both countries. The Double Taxation Agreement between Germany and Greece (Agreement No. 2215/1994) aims to prevent such occurrences by outlining tax liability rules. However, practitioners often encounter challenges in ensuring compliance with both jurisdictions simultaneously. For instance, discrepancies in reporting income or failure to declare assets in one jurisdiction can trigger audits or penalties in the other.

Another critical factor is the requirement for accurate and timely reporting. In Greece, the submission of Form E1 is essential for annual income reporting, whereas Germany requires the submission of an Einkommensteuererklärung (Income Tax Return). Failure to synchronize these submissions can lead to discrepancies that may result in the deactivation of your Greek AFM, especially if the IAPR identifies inconsistencies in reported income or financial activity.

Additionally, differences in financial regulations, such as those governing foreign asset declarations, can complicate compliance. While Germany mandates the reporting of foreign accounts and investments via the Anlage AUS form, Greece requires similar disclosures through its annual tax return process. Misalignment or failure to adhere to these requirements in either country can jeopardize your tax standing and lead to the deactivation of your AFM by the IAPR.

To navigate these complexities, it is advisable to engage with tax professionals who have expertise in both jurisdictions. They can assist in ensuring that all necessary forms are properly filed and that any potential triggers for AFM deactivation are proactively addressed. This cross-jurisdictional understanding is essential for maintaining compliance and protecting your financial interests while living or investing across borders.

If your Greek AFM is deactivated while you're in Germany, you may face difficulties in conducting financial transactions in Greece, such as banking or property dealings. It is advisable to contact the Greek Independent Authority for Public Revenue (IAPR) to resolve any compliance issues and reactivate your AFM.

To prevent AFM deactivation with dual residency, ensure that you comply with tax obligations in both Greece and your other country of residence, such as Germany. Regularly update your information with the Greek IAPR and file all necessary tax returns in both jurisdictions.

Yes, the Double Taxation Agreement between Greece and foreign countries, such as Germany (Agreement No. 2215/1994), provides a framework to manage tax liabilities and prevent double taxation, affecting how AFM interacts with foreign tax systems.

Yes, discrepancies in income reporting between Greece and another country can lead to issues with your AFM, including potential deactivation. Ensure consistent and accurate reporting to both the Greek IAPR and foreign tax authorities.

In Greece, Form E1 is critical for income reporting, while in Germany, the Einkommensteuererklärung and Anlage AUS are essential for tax compliance. Accurate submission of these forms is crucial for maintaining AFM compliance.

The landscape of AFM regulations in Greece is constantly evolving, and staying abreast of recent updates is crucial for expats and investors. One of the pivotal regulatory changes slated for 2026 pertains to the enforcement of stricter compliance checks before an AFM can be reactivated. The Greek Ministry of Finance, through Law No. 4876/2026, has introduced new measures designed to streamline tax compliance while ensuring transparency in financial transactions.

Under these new regulations, the Greek Independent Authority for Public Revenue (IAPR) will implement a more rigorous verification process for individuals seeking to reactivate a deactivated AFM. This process will require the submission of Form M1, a newly introduced document aimed at verifying the applicant's tax compliance status across multiple dimensions, including the payment of any outstanding taxes and fines.

Additionally, the European Union's Fourth Anti-Money Laundering Directive (Directive (EU) 2015/849) will play a critical role in shaping AFM-related procedures by 2026. The directive mandates enhanced due diligence measures, particularly for foreign nationals conducting significant financial activities in Greece. This aligns with Greece’s commitment to adhering to EU-wide standards for combating financial crimes and ensuring that the financial system remains robust and secure.

The upcoming changes also involve closer collaboration between the IAPR and the Hellenic Data Protection Authority (HDPA), as outlined in Decision No. 214/2026. This collaboration is essential to ensure that personal data collected during the AFM reactivation process is handled in compliance with the General Data Protection Regulation (GDPR). Applicants will be required to provide explicit consent for data processing, and the HDPA will oversee the implementation of measures to protect sensitive information.

These regulatory updates underscore the importance of maintaining an active AFM and being proactive in addressing compliance requirements. Expats and investors are advised to consult with legal and tax professionals who are well-versed in these developments to ensure a smooth transition and compliance with the enhanced procedures. Understanding these changes not only helps in preventing AFM deactivation but also contributes to a more secure and compliant financial environment in Greece.

Under the 2026 regulations, Form M1 is required for AFM reactivation to verify the applicant's tax compliance status.

The EU's Fourth Anti-Money Laundering Directive (Directive (EU) 2015/849) influences the new AFM compliance measures.

The Hellenic Data Protection Authority ensures that personal data collected during AFM reactivation complies with GDPR regulations.

The IAPR verifies tax compliance through a rigorous process involving the submission of Form M1, checking for outstanding taxes and fines.

Law No. 4876/2026 introduces stricter compliance checks for AFM reactivation and aims to enhance transparency in financial transactions.

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About the Author

Lazaros • Founder & Greek Market Expert

500+ CasesGreek Market ExpertFounder

I build digital pathways through Greek bureaucracy — for people who move, buy, inherit, hire, or run operations on the ground. Designed for clarity, speed and legal certainty. Ellytic exists because the system should finally work.