The income obtained by these taxpayers from rents, as well as any imputed rents that the tax authorities will charge them for the free concession or appropriation of real estate will be added together and will be taxed independently – following an automatic reduction of 5% – with tax rates of 15%-45% .
In form E2, for each property leased during 2023, detailed descriptive data is filled in, as well as aggregated data on the rents received or on the rents that are assumed in the cases of self-use and free concession.
This year, for the first time, information on income earned by taxpayers in 2023 from short-term rental properties will be pre-populated on the E2 form based on data collected and available to the Inland Revenue from short-term rental platforms ( Airbnb, Booking etc.). However, taxable owners will be able, if they wish, to intervene and amend the pre-populated amounts.
Form E2 should not be completed in case of:
a) Payment of compensation for the premature termination of the lease by the lessee, as well as the intangible value in the 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 taxable parking-storage area 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 1a) are completed.
In detail, for the electronic submission of this year’s form E2, the following instructions of the AADE apply, as stated in the decision numbered A1061/2024 of the Authority’s governor, G. Pitsilis:
1. In the E2 form, the built real estate of each debtor is registered, regardless of whether he obtains income from it, while the unbuilt real estate is registered only if it generates real or presumed income. In the event that the built real estate is EMPTY for the whole year or for a specific period, it is included in the form with the sign “VACANT” and the time period for which it was vacant is also filled in.
2. To fill in column 4, which refers to the category of the declared property, select the category according to the following categorization of properties, which is valid for filling in form E9: Residence, Detached House, Commercial Building, Plot, Warehouse, Parking Space, Bus Station, Industrial Building, Hotel, Hospital, School, Sports Facility, Other Building (Theatre, Cinema, Museum, etc.), Plot of Land, Other Use. Corresponding completion will be done in case of submission of the statement to the competent agency.
3. Columns 13, 14 and 15 are filled in with the gross real estate income attributable to the debtor by category, as shown in the column headings (lease-sublease, free grant, own use). In these columns, the uncollected income from the rental of real estate declared in the tax years 2015-2022 in codes 125-126 and collected in the year 2023 are also filled in.
Uncollected rents
- Column 16 is filled in with the amounts of uncollected income from the rental of real estate, if by the deadline for submitting the annual income tax return, a payment order or an order for the return of rent or a court decision to expel or award rent has been issued once morest the tenant or has been brought once morest him tenant action for dismissal or rent award accompanied by proof of service and clear photocopies of these have been presented to the competent agency before submitting the statement. In the case of a lawsuit filed in which it is stated that rents are claimed until its adjudication, the lawsuit is accepted as supporting evidence, as long as it is accompanied by a responsible declaration, where the period of time for which the rents are due will be indicated. Especially in the event that the lessee/sublessee is bankrupt, it is sufficient to present a copy of the debt declaration table in which the lessor/sublessee’s claim appears.5. Exceptionally, and in order to declare uncollected income for the period of time between the issuance of the dismissal decision or the order to return the use of rent until its execution, which took place by the deadline for submitting the income tax return, it is sufficient to submit a responsible declaration and an eviction and settlement report drawn up by the bailiff, that for the above period the rents have not been collected. The necessary supporting documents are submitted to the department responsible for receiving the statement, where they are checked and registered before submitting the statement. What is mentioned in the previous paragraph also includes the uncollected compensation for non-contractual use of the property.6. In column 17, fill in the type of lease and the use of the property.
This column is filled in by category of property use and when compensation is collected for non-contractual use of the property in accordance with article 601 of the Civil Code, which falls under real estate income.
Choosing him code 60of this column, all the income obtained from the short-term rental of properties through digital platforms (Airbnb, Booking, etc.) will be declared aggregated per property, while selecting the code 61 of the column will be declared aggregated by property all the income obtained from the short-term subletting of real estate through digital platforms (Airbnb, Booking, etc.) during the tax year 2023. The income from the short-term letting or subletting of real estate (codes 60 and 61 of column 17) will be pre-filled based on the data available to AADE with the possibility of change by the taxpayer.
To code 62 “Residential rental that is sublet” means the gross income obtained by the lessor from the rental of a residence that is subsequently sublet by the lessee. The income in question, once completed, will be transferred from AADE to codes 105-106 of form E1.
To code 63 “Rental of a residence sublet for short-term rental through a digital platform” means the gross income earned by the lessor from the rental of a home that is sublet for a short term in the context of the sharing economy through a digital platform by the lessee. The said income will be transferred from AADE to codes 105-106 of form E1.7. When filling in column 18 “Electricity Supply Number” the nine-digit electricity supply number of all properties must be entered, as long as there is supply, regardless of whether it is in operation or not, by the company that provides it (PPC or any other company) , by the type of electricity supplied (conventional, construction site, etc.) and regardless of whether several properties are electrified from the same supply (offices, shops, warehouses, parking lots, etc.). In the event that there is no power supply (meter) or it is a warehouse or parking area that is electrified by the public power supply, this column is filled with the number “999999999”.
8. In column 19, fill in the number of the real estate lease information statement.
9. As the serial number of Table I “Rentables, etc. Properties” of the “Additional Property Data” the serial number of the Table on the 1st page is indicated. In the Analytical Statement of Rents (form E2) the immovable property of the dependent minor children is also declared by the liable parent. These properties are also completed in Table I of the second page of the form, mandatorily including the child’s tax identification number.
HOW PROPERTY INCOME IS TAXED
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. The deduction is made automatically when the income tax return is cleared by the AADE.
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 obtained during 2023 a total income of 20,000 euros from rents will be asked to pay income tax on an amount of 19,000 euros (reduced by 5% due to an automatic presumptive deduction for repair, maintenance and other operational needs of the rented properties). The tax he has to pay will be calculated as follows:
* 12,000 euros X 15% = 1,800 euros
* 1,800 euros + 2,450 euros = 4,250 euros
Therefore, the taxpayer in question will pay an income tax of 4,250 euros.
ADDITIONAL COST DISCOUNT FOR REPAIRS – RENOVATIONS
The expenses incurred from 1-1-2023 until 31-12-2023 by each owner, usufructuary or petty owner of residences and other buildings, to pay service fees related to the energy, functional and aesthetic upgrading of these properties , reduce, at a rate of 40% of their amount, the taxes attributable to his total taxable income for the years 2023, 2024, 2025 and 2026. Essentially, 40% of the total expenditure incurred in 2020 is distributed equally as a credit – tax deduction on the tax returns of the years 2024, 2025, 2026 and 2027, which concern, respectively, the income 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 and not the costs for the supply of materials are taken into account. 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.
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