The conversion into law (176/2020) of last year's refurbishment decree introduced for 2021 the possibility for residential property owners to be able to apply for a non-refundable subsidy for leases that suffered rent reductions due to the pandemic crisis.
In this article, I have prepared for you a summary of the legislation and outlined what the requirements are to benefit from it.
SIZE OF CONTRIBUTION
The subsidy recognized by the revenue agency for contracts that have suffered rent reductions due to the economic crisis triggered by the pandemic is an amount equal to 50 percent of the reduction made for the year 2021 and is recognized in amount of a maximum of € 1,200 for each landlord.
REQUIREMENTS FOR APPLYING FOR THE RENTAL SUBSIDY GRANT
- Subjective requirements
- The application for the non-refundable subsidy may be requested by taxpayers who are landlords in residential leases who have granted a rent reduction in 2021. In the case of multiple landlords, each person is eligible for the grant by submitting a separate application.
- The subsidy is payable not only to "private" landlords but also to companies or vat holders.
- Finally, it is necessary for the leased property to have been used as the tenant's principal residence, i.e., that in which the tenant habitually resides, and this must be apparent from the registered residence.
- Objective requirements
- The lease, for which you intend to apply for the grant, must be for a property for residential use, located in one of the municipalities with high housing tension ( i.e., municipalities with more than 50,000 inhabitants or otherwise included within the list of the CIPE) as well as the municipalities bordering them and other provincial capitals.
- You can qualify for the subsidy regardless of the tax regime (dry coupon/registration tax)
- To be eligible for the subsidy, the landlord must prove that he or she holds a lease that began before Oct. 30, 2020.
- The lease must have undergone a reduction in the agreed rent for all or part of 2021, and the reduction must have begun no earlier than 12/25/20 ( the effective date of the law ).
- Renegotiation must be reported to the IRS via RLI form by the end of 2021.
Download the full information from the IRS here!
