Insolvency offences are crimes connected to the insolvency of a company or natural person. Insolvency arises where a debtor is unable to pay obligations as they fall due; companies may also be insolvent due to over‑indebtedness.
Law 3588/2007 lists eight offences, including:
- Removal of assets that would form the insolvency estate;
- Loss‑making sham transactions (e.g., sham transfers of real estate to relatives);
- Obtaining goods on credit and selling at significantly below value;
- Acknowledging fictitious claims;
- Failure to keep statutory books;
- Concealment/destruction of books;
- Failure to prepare balance sheet/inventory;
- Other reductions of assets or concealment of the true business situation (e.g., gifts of real estate to children).
Sentencing range: 2–5 years’ imprisonment and €150–€15,000 fine; 10 days–2 years and €150–€15,000 for preferential treatment of creditors. Insolvency administrators who embezzle funds or make false statements may face 3 months–5 years and a fine double the advantage; self‑dealing in estate assets is also punishable.
For legal entities, managers and board members bear responsibility in specified cases (e.g., receiving payments beyond statutory limits).