Paying tax up to 45%, owners risk real estate on income not received in 2022 from unpaid rent, if they do not immediately go to specific movements. According to the law, there is a special procedure for landlords who rent out property but do not collect rent, which they must follow in order to avoid paying taxes.

The prerequisite is that by the due date for filing the annual income tax return, a payment order or order for the payment of rent has been issued against the tenant, or a court decision to refuse or award the rent, or a claim for deviation, or the tenant has been submitted a claim for the award of rent along with proof of compliance, and a clear photocopy of it was submitted to DOU prior to application.

In particular, the law provides:

• The tenant is subject to a payment order or order to use the rent, or a court decision to deny or award the rent, or a claim is filed against the tenant to deny or award the rent.

• Provide the tax office with photocopies of orders, court decisions or lawsuits filed.

If the necessary supporting documents for the declaration of uncollected rent are not submitted, then the amounts declared as uncollected income will not be taken into account, and the tax office will proceed to a new liquidation of the declaration, taxing certain amounts.

As such, property owners with uncollected rent can avoid taxation at rates ranging from 15% to 45% on income they did not receive in 2022 if they completed the above procedures before the tax return deadline.

Until June 30, the filing of a declaration and 8-month payments of tax repayment.

Under the applicable tax scale, annual net taxable rental income is taxable regardless of the first euro, based on the scale in which the rates apply:

• 15% for the first 12,000 euros of income.

• 35% for the next 23,000 euros, i.e. in terms of income from 12,001 to 35,000 euros.

• 45% on the share of income over 35,000 euros.

Rent not collected during 2022 is filled in codes 125-126 of Form E1 of the tax return. In case of non-received income from the rental of real estate declared in the previous tax year under codes 125-126 and collected in 2022, the total amounts are declared in the appropriate columns of the E2 form, and individual amounts are transferred by land category – a land plot or property according to the relevant codes of this subtable.

It is noted that taxpayers can submit their declarations until June 30, paying the received tax in 8-month installments. The first installment must be paid by July 30, and each of the next 7 payments by the end of August, September, October, November, December 2023, January and February 2024. Alternatively, taxpayers may pay the tax in a lump sum. , with a 3% discount, until July 30th.