Uncollected rents: What applies to their taxation – Tax expert Antonis Mouzakis writes

Tax expert Antonis Mouzakis gives detailed instructions on uncollected rents. The provisions of the Income Tax Code stipulate that the income from the rental of real estate, which has not been collected by the beneficiary, is not included in his total income.

This applies if, by the deadline for submitting the annual income tax return, a payment order or an order for the use of rent or a court decision to dismiss or award rents has been issued against the tenant, or an action to dismiss or award rents has been brought against the tenant.

Especially, in case the lessee is bankrupt, instead of presenting the above supporting documents, it is sufficient to present a copy of the debt declaration table, in which the claim of the lessor / sublessor appears.

It is emphasized that of all the prescribed supporting documents that are presented to the D.O.Y. , the period of time for which rents are due should be stated.

Exceptionally, and in order to declare uncollected income for the period between the issuance of the expulsion decision or the order to return the use of rent until its execution, or which took place until the deadline for submitting the income tax return, it is sufficient to submit a responsible declaration that for the above period the rents have not been collected.

The said incomes are taxed in the year and according to the amount proven to have been received.

The uncollected income is declared in a special code of uncollected income from real estate rental of the income tax return (column 16, form E2).

In order to declare the income from the rental of immovable property as uncollectible, clear photocopies (photocopies) must be submitted to the competent D.O.Y., before submitting the statement - according to no. 1 of Law 4250/2014 (Abolition of the obligation to certify copies of documents) -, of orders, judicial decisions that have been issued or lawsuits that have been filed, up to the deadline for submitting the annual statement.

In the event that the required supporting documents for the declaration of uncollected income from the rental of real estate have not been submitted, the tax administration will proceed with new settlements, not taking into account the amounts declared as uncollected income.

Uncollected income from the rental of real estate can only be declared by natural persons who obtain income from the rental / subletting of real estate, in order not to include it in their income. The provisions on uncollected rents do not apply to legal persons and legal entities.

On the contrary, uncollected income from the rental of real estate by natural persons cannot be declared , , when this income comes from compensation for the use of real estate as well as from the exercise of business activity (e.g. tourism exploitation, organizing events in halls or estates, etc.).

Uncollected income from the rental of immovable property can be declared by the heir, who enters into all the rights and obligations of the heir, by presenting one of the applicable supporting documents, together with the legalization documents of his right of inheritance.

Source: https://www.dnews.gr/eidhseis/oikonomia/443171/mouzakis-sto-dnews-perimenoume-ti-diataksi-gia-ti-forologisi-ton-airbnb https://www.enikonomia.gr/economy/aneisprakta-enoikia-ti-ischyei-gia-ti-f/450840/