The tax ban on use cash THE payments In the case of rents and their compulsory repayment exclusively through a bank, it is intended to proceed from 1 October - and without further extension - Ministry of Finance.
After the six-month period «grace» given in spring, the financial staff appear determined to comply with the timetable for implementing the law, stressing that the necessary infrastructure ADE and Bank is now fully operational to support the new system.
Therefore, real estate owners and tenants They should now be prepared to have completed the consultations and necessary adjustments by 30 September at the latest, so that the agreed rent can be repaid from now on by means of banking instruments, without paying or interfering with the cash at all.
No money. «hand»
With the new process, all rents residential and business property must be repaid exclusively through a bank account. Any rent, whether for principal residence, student housing, business property, should be paid through a bank account (such as transfer of money, fixed order or e-banking) and not «hand by hand».
Otherwise, cash payments cease to be recognised for tax purposes. Banking will be the only evidence of payment of the rent.
- Such a development will mean:
- – the tenants choose the payment «hand» will be excluded from the housing allowance and the annual rent allowance (up to 800 euros, now increases for protected children).
- – for owners, the collection of cash leases will result in the loss of the automatic 5% discount on gross income from real estate, which is granted without the requirement to provide supporting documents.
- – for enterprises, professional rents not paid through a bank will not be recognised as deductible expenditure from the gross income of the company.
Objective «black money»
The reform is aimed at limiting tax evasion and recording the real image of the real estate market. Today, the average monthly rent reported is EUR 230-240, which, according to tax administration estimates, is significantly below the actual price levels, especially in urban centres. Through the automatic crossing of banking transactions with electronic leases and tax returns, the ministry seeks to eliminate the phenomena of undeclared or implied income.
It is noted that, on the basis of recent tax declarations, some 1.8 million taxpayers have income from rents. But the vast majority of owners (nine out of 10 or 87%) declare an annual income of less than 10,000 euros, less than 850 euros per month.
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