Budget «hole» up to EUR 1.35 billion in the state funds show the data presented at a conference on the crisis of housing, because of the tax evasion owners hiding amounts of rent in their tax returns.
And tax evasion always seriously affects the part of public revenue. According to the presentation of Pansypios President Costas Liveris, with data on the problem of housing in Greece, the difference between the declared rents and the estimated actual rents on the market can lead to a tax loss from around EUR 430 million to EUR 1.35 billion per year.
The study is based on the average declared rent of EUR 255 per month and in three scenarios for the actual average rent on the market, EUR 450, 550 and 650. On the basis of these scenarios, the possible undeclared income from rents is calculated and then the corresponding tax loss for the State.
In the low scenario, where the actual average rent is placed at 450 euros, the difference from the declared amount of 255 euros reaches 195 euros per month per lease. For 1.2 million leases, possible undeclared income approaches 2.8 billion euros annually. For 1.5 million leases, the amount goes up to around 3.5 billion euros.
On the basis of property income tax rates, the low scenario leads to an estimated tax loss of around EUR 430 million. This is the lowest assumption of the study, as it calculates the actual average rent at the lower end of the range.
In the middle scenario, with a real average rent at 550 euros, the monthly difference from the declared amount increases to 295 euros per lease. For 1.2 million leases, the possible undeclared income is estimated at around 4.3 billion euros a yearFor 1.5 million leases, the corresponding amount amounts to around 5.3 billion euros. In this case, the potential tax loss is estimated at around EUR 795 million.
In the high scenario, with a real average rent of 650 euros, the distance from the declared rent reaches 395 euros per month. On an annual basis, possible undeclared leases are estimated at around EUR 5.7 billion for 1.2 million leases and around EUR 7.1 billion for 1.5 million leases. This scenario shows a tax loss of up to EUR 1.35 billion.
The study emphasises that the subservation of rents creates a problem in public revenues and links the treatment of the phenomenon to more cross-breeds. The necessary interventions include the compulsory payment of rent through a banking system, the association of rents with tax data and the control of amounts declared by owners and tenants.
