How the Rental Rebate and Tax Deduction for Renovations Will Be Implemented

The first two interventions to address the housing crisis are outlined in the new draft law from the Ministry of Finance, offering a rebate of up to €800 annually for tenants of primary or student housing and extending the tax deduction of up to €16,000 over five years for renovations. The rental subsidy will begin this year, with automatic payments every November based on data submitted by September’s end. Single individuals earning up to €20,000, married couples up to €28,000 (increased per child), and single-parent families with a minimum income threshold of €31,000 qualify. For students, only income criteria and registration under their name are required. Payments are calculated as one-twelfth of the actual rent paid last year, not the agreed amount, capped at €800 plus €50 per dependent child. All rents must be correctly declared in both rental agreements and tax filings. No corrections or appeals will be accepted post-submission. Strict controls ensure false or incomplete data results in recouping funds with interest and exclusion from future benefits for three years. A transitional period until July 15, 2025, allows late submissions without penalties, but from 2026 onward, all declarations must be timely and complete. Additionally, the MIDAS Property Registry and Management system will enhance transparency. Meanwhile, the tax deduction for property upgrades extends through 2026, offering discounts up to €16,000 spread over five years when expenses are paid electronically.