The new tax scale for income from rents has been released through which the Ministry of Finance expects a revenue increased of € 140 million. The taxation scale for income from rents is as follows: 

At the same time, the number of property owners, who have to pay the additional tax (property tax, Greek abbreviation ENFIA) has been more than doubled.

More specifically, tax payers, who are obliged to pay the additional tax (ENFIA) are those who have property of an objective value of € 200,000 or more, compared to the limit of € 300,000 which was in force until last year.

Practically, that means that 608.622 owners, especially in the cities, are going to be asked this year to pay, compared to the 300.000 owners of the year 2015. For the area from € 200.000 up to € 300.000 of ownership, 2 rates apply, 0,1% and 0,15%, while for ownership of more than € 300.000 even higher rates than in 2015 will be applied, beginning by 0,3% and reaching even the 1,15%.  

In regards to uncollected rents, according to the Ministerial Decision POL 1024/2016, in order for these to be declared as “uncollected income” from the lease of real estate, in accordance to paragraph 4 of Article 39 of the Income Tax Law, photocopies need to be submitted before the submission of the income tax return, Article 1 of Law. 4250/2014, of orders, judgments / decision of courts, which have been brought up until the submission deadline of the annual tax return.

It has been clarified that the “uncollected income from rents” has to be reported on the form "DETAILED STATEMENT FOR RENT OF REAL ESTATE" E2, which will be amended accordingly and will be transferred to a special code of the form E1 upon submission of the relevant income tax return.

The taxpayer and owner of real estate who faces the issue of “uncollected rents” for 2015 until the date he needs to submit his income tax return, has to go a few days before the submission of his income return to the relevant Tax Office and submit copies of any judicial act he has undertaken against the tenant, that means any payment order, any lease adjudication, court decision for eviction or judgment for rental amounts, or any claim for eviction or judgment for rental amounts has been exercised against the lessee.  

After the submission of the above mentioned copies and their registration in the system a specific code becomes released for "Uncollected Rent" on the Forms E2 and E1, so, when submitting the tax return, these rents are recorded in the column of debts and will not be taxed as income for the stated period. They will normally be registered and taxed in the year in which they are going to be collected.

NOTE: This article does not cover advisory, but only informational purposes, and cannot serve, as a basis for further actions, on the part of   the reader. Reception of specialized advice is required.

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