Method of non-taxation of unpaid rents

Pursuant to article 11 of Law 4346/2015, in article 39 of Law 4172/2013 (Income Tax Code), a new paragraph 4 is added as follows. Income from the letting of immovable property which has not been collected by the beneficiary is not taken into account in his total income, provided that by the deadline for submitting the annual income tax return, a […]

24 November 2015 · By Nikolaos Karamanos

This article reflects the position at its publication date and is not current legal or tax guidance. Contact AFS for the current position.

Pursuant to article 11 of Law 4346/2015, in article 39 of Law 4172/2013 (Income Tax Code), a new paragraph 4 is added as follows.

Income from the letting of immovable property which has not been collected by the beneficiary is not taken into account in his total income, provided that by the deadline for submitting the annual income tax return, a payment order or an order for the surrender of the use of the leased property or a court decision for eviction or award of rent has been issued against the tenant, or an action for eviction or award of rent has been brought against the tenant.

The said income is taxed in the year and in the amount actually collected, by way of derogation from the provisions of article 8. Uncollected income is declared in a special code for uncollected income from the letting of immovable property in the income tax return.» 2. The provisions of the preceding paragraph apply to income acquired from 1 January 2015 onwards.