Property owners in Greece need to be cautious in their tax declarations as specific reporting is required to qualify for tax-exempt status on rent income this year.
In Greece, property owners who have recently modified the status of their rental properties—either reopening previously closed properties or converting short-term rentals to long-term leases—must pay close attention during this year's tax declaration process. They are required to accurately report their rental income using specific codes on the E2 form to qualify for exemptions from rental taxation.
The Greek tax authorities have outlined a clear framework for property owners to follow. Owners must refer to the E2 form to ensure that not only their current but also previous year's declarations align with their rental activities. For properties that were vacant, owners should use code 64. If previously rented as short-term leases, code 65 is applicable, while codes 66 and 67 are for long-term leases of at least six months for vacant properties.
Correctly utilizing these codes while ensuring all preconditions are met is essential. If done properly, the eligible amounts can then be transferred to the E1 form under codes 119-120 as exempt income, providing financial relief for property owners. Failure to comply could lead to taxation where exemptions might otherwise apply, emphasizing the importance of meticulous reporting during this tax season.
