Not one, but two measures of differing nature introduced within weeks indicate that the Ministry of Finance (YPOIK) is not only targeting freelancers but also focusing on long-term rentals. According to sources from YPOIK cited by newsit.gr, the new regulations may uncover a ‘hidden treasure’ of tax evasion from undeclared rental incomes. The first intervention involves one of three measures announced by the prime minister and will be included in the Customs Code bill, concerning the return of 1/12th of the annual rental cost with criteria similar to the ‘My Home 2’ program. Essentially, this means a full month’s rent refund to tenants out of the 12 they pay annually. Beyond social support for citizens burdened by housing costs, the ministry aims to combat property owners’ tax evasion by incentivizing tenants to demand full rent declarations. The second measure concerns the much-discussed Real Estate Ownership and Management Registry (MIDA), set to launch this summer. This initiative aligns with YPOIK’s digital focus under Minister Kyriakos Pierakkakis, emphasizing transparency. Both measures complement each other, scrutinizing property rentals closely. Through MIDA, all rents must be declared by both tenants and landlords, with cross-referencing from the Land Registry, Independent Authority for Public Revenue, and local tax offices identifying properties falsely listed as vacant but actually rented illegally. Sources suggest these measures could reveal thousands of undeclared rentals equating to millions in unreported income. While exact figures are yet unclear, comparing advertised rental prices with officially declared averages—only €255—reveals significant discrepancies, highlighting substantial potential tax revenue.
Circular Actions Against Property Owners – Why YPOIK Targets Rental Tax Evasion
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