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Personal Tax ,Tax Updates

Tax credit to property owners that voluntarily reduce their rent collection.


The recently amended law provides tax credit to property owners who rent their property to individuals or companies, provided they reduce their rental income. This amendment only applies to the tax year 2020 and provides tax credit equal to 50% of the rent reduction.


Conditions for qualification.

Monthly rent reduction.

The rent reduction should not be more than 50% and less than 30% for a period of three months, regardless of which months the reduction refers to. In the event that the rent reduction exceeds 50%, the tax credit is limited to the maximum credit amount which is 50% of the rent.

The relevant reduction must be substantiated by a written agreement between the property owner and the tenant.


Owner and tenant.

The owner and the tenant must not be interconnected.


Tax credit.

The tax credit reduces the amount of tax payable for income tax purposes only. In the event that refund of income tax is included in the tax credit calculation, the amount refunded shall not exceed the amounts paid with deduction or with temporary taxation or self-taxation.

The credit not only applies to rental income but also to usage rights.



A Store owner rents towards a company or individual with a monthly rent of €2,000. Therefore, he reduces rents for the months of May, June, July by 50% (ie from €6,000 total to €3,000.) The tax credit in this case is € 1,500 (50% of € 3,000). However, the person may have other income from this rent. After calculating the tax, it appears that he has a taxable amount of € 1,800. In the event that no withholding tax or payment is made with temporary or self-taxation, then a final taxable amount of € 300 will result (€ 1,800- € 1,500).