Zero Income Tax on Rents for 3 Years
The most significant provision of the tax package concerns zero income tax on rental income for those who choose long-term leasing. The measure applies to residences up to 120 sq.m., with an additional 20 sq.m. for each child beyond two, and is aimed at owners with vacant or inactive properties, as well as former Airbnb residences, provided they return to long-term rental.
The exemption applies to leases starting until December 31, 2026 and lasts for three years. A critical condition is that the property must not be rented out even for one day as a short-term rental. In case of violation, the tax authorities revoke the exemption retroactively.
Valid: Until December 31, 2026
ENFIA Exemption in Small Settlements and Evros
From 2027, a permanent exemption from ENFIA is established for primary residences in settlements with a population of up to 1,500 residents, as well as throughout the Regional Unit of Evros. The total objective value of the properties must not exceed €400,000. The measure is automatically applied via the E9 form, without a separate application.
Owners undertaking renovation or repair work are entitled to a 30% tax reduction, provided payments are made exclusively through electronic means. The regulation is valid until the end of 2026.
VAT Suspension on Newly Built Homes
The extension of the 24% VAT suspension on sales of newly built homes until 2026 offers savings of up to €48,000 for a property valued at €200,000, boosting liquidity in the market.
Review of Living Expenses Assumptions
A 30% reduction is foreseen in the assumptions for residences, cars, and boats, along with the abolition of the minimum objective expenditure for minor children. For areas with up to 1,500 residents, additional incentives are provided: Self-employed professionals will have a 50% reduction in the deemed income, while new mothers are exempt for 3 years after childbirth.
Additional Measures for Small Settlements and Islands
In North Aegean, Dodecanese, and Evros, a reduced 30% VAT applies to goods and services. All of the above are part of a comprehensive strategy to stimulate the market and strengthen the region.
Frequently Asked Questions (FAQ)
- Who can benefit from the three-year exemption on rents?
- Owners of vacant or inactive properties: Individuals who own residences that were vacant or unused and decide to include them in long-term leasing. Owners of properties from short-term rentals (Airbnb): Individuals who withdraw their residences from the short-term rental regime (e.g., Airbnb) and rent them out long-term.
- When does the full abolition of ENFIA apply?
- From 2027 for primary residences in settlements up to 1,500 residents and in the Regional Unit of Evros, with an objective value up to €400,000.
- What is the situation regarding renovations?
- Owners are entitled to a 30% deduction from income tax, only for payments made electronically, until the end of 2026.
- Are there special measures for small settlements and islands?
- Yes, a 30% reduced VAT on goods and services, with additional reliefs for self-employed professionals and new mothers.
