The points on which the attention of most property owners should be particularly focused are, in particular, the following:
1 Submit form E2 before submitting E1 of the tax return. Taxpayers who acquired real estate income in 2023 must once once more this year complete and submit electronically to the TAXISnet system first the E2 form, entitled “detailed statement for real estate leases”, and then complete and submit the basic tax declaration form, the E1.
In the E2 form, for each property leased during 2023, detailed descriptive data as well as aggregated data on the rents received or on the rents that are imputed in the cases of self-use and free concession are filled in.
2 When the E2 is not submitted. Form E2 should not be completed and submitted in case of:
a) Payment of compensation for the early termination of the lease by the lessee, as well as the intangible value in cases of mixed contracts, i.e. contracts where, in addition to the right to lease, the right to commercial exploitation of the property is also included. These amounts are listed in code numbers 121-122 of sub-table 4D2 of form E1.
b) Ownership of a main or secondary residence (cottage or non-cottage) or use for the needs of the taxpayer of a parking-storage space with a different address from that of the main or secondary residence. In this case, only the indications of Table 5 of E1 (sub-table 1) are completed.
3 Application of special arrangements for rents left uncollected in 2023, due to tenants’ refusal or inability to pay them. For the tax year 2023, the income from the rental of immovable property that has not been collected by the tenants due to their financial inability, is not included in the total income of the beneficial owner if, by the deadline for submitting the income tax return, a payment order or an order for the performance of use has been issued rent or a court decision to dismiss or award rents or to have brought (filed and notified) an action for dismissal or awarding rents once morest the tenant and has been presented before the submission of the income tax return, the case-by-case clear copy of these to the D.O.Y.. After the procedure has been completed by the DOU, the E2 form must first be submitted, in which it must be completed, in column 16 of 1her page, the amount of uncollected rents for which the relevant decision has been issued. Subsequently, the amounts of these uncollected incomes must also be entered in codes 125-126 of Table 4D2 of the basic form E1, of this year’s tax return.
4 How to declare income from short-term property leases. Real estate leases concluded through digital platforms for a specific period of time, less than a year, and in which no services other than accommodation and bed linen are provided are characterized as “short-term leases”. These leases are concluded on digital platforms, such as Airbnb, Booking, HomeAway, etc. Any short-term leases entered into privately and not through a platform are treated as common civil leases, unless they are accompanied by ancillary services, in which case they are treated as a business activity.
Income earned in 2023 from short-term rental properties through Airbnb, Booking, HomeAway, etc. are declared cumulatively for each property separately in column 17 of form E2 (of the “detailed statement for real estate leases”) with code 60. By selecting code 61 in column 17 of E2, all incomes obtained from short-term sublets of properties through Airbnb etc. By selecting code 63 in column 17, the income from the rental of a residence, which is sublet for a short time through a digital platform by the lessee, is declared.
5 Finding net taxable rental income and taxing it from the first euro with income tax of 15%-45%. Rents and other income from real estate are taxed from the first euro and with rates from 15% to 45%, following previously deducting from them a percentage of 5% which is recognized as an expense for repair, maintenance, renovation and other operational needs of the rented properties. In particular, 95% of the sum of the rents actually received during the previous year and any imputed rents arising for the previous year in the case of exclusive use of commercial housing or free concession of real estate constitutes the net income from real estate which is subject to income tax. This tax is calculated with coefficients:
* 15% on the first 12,000 euros of net income
* 35% on the next 23,000 euros, i.e. on the part of the net income from 12,001 to 35,000 euros
* 45% in the over 35,000 euro part of the net income
For example, a taxpayer who acquired during 2023 a total income of 20,000 euros from rents will be required to pay income tax for an amount of 19,000 euros (reduced by 5% due to the automatic presumptive deduction of repair, maintenance and other operational needs of the rented properties). The tax will be calculated as follows:
* 12,000 euros X 15% = 1,800 euros
* 7,000 euros X 35% = 2,450 euros
* 1,800 euros + 2,450 euros = 4,250 euros
Therefore, he will pay income tax of 4,250 euros.
What expenses are recognized…
6 Deduction from the relevant income tax of 10% of the expenses incurred in 2023 by each owner to pay service fees related to the energy, functional and aesthetic upgrading of their properties. The expenses incurred from 1-1-2023 until 31-12-2023 by each owner, usufructuary or minor owner of residences and other buildings, to pay service fees related to the energy, functional and aesthetic upgrading of these properties , reduce to a percentage of 40% of their amount, the taxes corresponding to his total taxable incomes, for the years 2023, 2024, 2025 and 2026.
In installments
Essentially, 40% of the total expenditure incurred in 2020 is distributed equally as a credit – tax deduction in the tax returns of the years 2024, 2025, 2026 and 2027, which relate, respectively, to the incomes of the years 2023, 2024, 2025 and 2026 .The amount of the deductible expenditure corresponding to the tax return of each of the years 2024, 2025, 2026 and 2027, amounts to ¼ of 40% of the expenditure, i.e. it is finally equal to 10% of the expenditure. This amount will reduce the tax attributable to the income of the taxable owner or small master in each of these years.
For the calculation of the discount, only the costs for the works are taken into account, and not the costs for the supply of materials. Necessary conditions for the discount to apply are that the expenses are proven with legal documents and have been paid with electronic means of payment (debit, credit or prepaid cards, electronic banking services) or through a payment service provider. Expenses should not have been deducted from gross business income. In addition, the measure covers buildings which have not already been or will not be included in a building upgrade program or other programs or grant actions.
They are recognized…
As energy costs that are recognized for a discount, those related to the receipt of services for the following are considered:
* Installation of thermal insulation
* Replacement of frames, glazing and external protective sheets
* Installation or upgrade of a heating/cooling system, as well as the necessary infrastructure and elements, so that the building becomes fully functional
* Installation of devices to automatically control the operation of the heating/cooling system
* Installation of a system of self-production of electricity (with energy compensation), as well as systems of electric accumulators (batteries) when combined with photovoltaic systems
* Installation of a hot water production system using Renewable Energy Sources (RES)
* Installation of a mechanical ventilation system with heat recovery
* Upgrading the lighting of the common areas of the apartment building.
Functional interventions
As functional-aesthetic expenses that are recognized for a discount are those that concern the receipt of services for the following:
* Installation/replacement of hydraulic installation
* Installation/replacement of electrical installation
* Roof maintenance/repair
* Masonry repair/Painting inside and outside buildings
* Installation of fixed or mobile shading systems
* Upgrade or install an elevator
* Installation of domestic recharging points for electric vehicles
* Change or repair floors.
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