That is why it is proposed to take measures against her as well as measures of a tenement nature that will “protect” the tenants of the main residence.
POMIDA’s proposal that will effectively protect the old and new tenants of the main residence, without taking us back to the “middle ages” of the Tenement is the following:
A large number of houses in the cities of our country were finished, renovated, furnished and posted on the international short-term rental platforms, in previous years when the non-declaration of their incomes seemed easy due to the non-existence of an institutional and fiscal framework, but also the demand for accommodation was much greater than their supply.
The establishment of the already valid tax legislation, the increase in supply in relation to the fact that it was not accompanied by a correspondingly increased demand for accommodation for short-term rental, but also the non-deduction of current costs (common users, utility bills, damage restoration, etc.) from the taxable income of the owners of the of these residences, prevented them from obtaining a registration number (AMA) on the AADE platform, i.e. from operating within the new legal framework.
These residences, estimated at some tens of thousands, will be withdrawn from online platforms very soon, before Article 29 of the new tax law 4646/2019 is implemented. But the government’s goal must be to get them back into the main house rental market immediately! To make this happen we propose the following specific tax incentive:
In income from real estate leases, (where the tax climate of the previous government remained unchanged, in contrast to the other two scales (salaried-pensioners and freelancers) where they were significant reductions), we propose to make a reduction exclusively in the tax rate for rents from main residence leases (of codes 103 & 104 of real estate tax income) by 10 percentage points in each applicable tax bracket, i.e.:
For principal residence rents up to €12,000 from 15% to 5%
For rents from €12,001 – €35,000 from 35% to 25%
For rents from €35,001 and above from 45% to 35%.
This tax measure, which will be applauded by the whole society, it will permanently solve the problem of supply of available houses for primary residence, making it more competitive than their supply for short-term rentals! In this way landlords will be quick to offer any available housing, to exclusively primary residence tenants as preferred tenants, and to renew existing primary residence leases. Thus, for the first time in years, a large number of completely renovated houses, in excellent condition, will be put on the market. But it will also benefit the lessors of short-term leases, since it will immediately drive off the platforms a multitude of accommodation of reduced suitability, from managers of dubious qualifications for this activity.
The fiscal loss from the reduction of the tax rate by 10 points, ONLY for principal residence leases, and not for business and short-term and all other types of rentals, we believe will be perfectly offset by the taxing of tens of thousands of new primary residence rentals that will follow. Finally, the large increase in supply that will follow from the resumption of the compensation in combination with the resumption of bank lending that will allow many tenants to once again buy privately owned housing, will also stabilize the amount of rents, operating much more efficiently than the rent subsidy, which will no longer be needed…
