The law includes provisions aimed both at strengthening the long-term residential leasing market and at providing relief to taxpayers through targeted tax reductions.
Among the most significant provisions is Article 8, which reduces the middle income-tax rate on rental income from 35% to 25%. This constitutes the first substantial reduction in income taxation for property owners since the period of the memoranda. Equally pivotal is Article 9, which provides a 36-month exemption from income tax for rents derived from previously vacant dwellings or properties that had been used for short-term rentals. The objective is to immediately increase the supply of housing available for long-term leases, thereby easing the pressure that has been observed in the housing market in recent years.
Article 10 provides an exemption from the ENFIA property tax for owner-occupied homes located in small settlements—a measure with strong social and regional characteristics.
Finally, Article 12 extends the suspension of VAT on newly constructed properties through 2026, thereby supporting construction activity.
Clarifications by POMIDA Regarding Implementation
POMIDA clarifies that the regulation applies to contracts signed between 8 September 2024 and 31 December 2026. The exemption lasts for 36 months from the month in which the first eligible lease agreement is concluded. For vacant dwellings, it is required that they have been declared as vacant on Form E2 for the preceding three years, while similar conditions apply to properties previously used for short-term rentals.
It is particularly important that the period during which a property was vacant or used for short-term rentals may also be counted from previous owners, provided it was declared in their tax returns. Furthermore, properties that changed use and were converted into residences may also be included in the regulation, provided the relevant reporting conditions are met.
Lastly, the exemption ceases to apply if the dwelling becomes vacant and is not re-leased within three months (or within six months for certain categories of public servants), as well as if it is subsequently made available again for short-term rental.
