The Circular with the instructions of filling out the E1 declaration form – How to declare income generated from Airbnb rentals

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The new E1 form and the Circular with instructions for completing the 2017 income tax return were published in the Government Gazette. Among other things, it provides clarification on how to declare the taxpayer’s expenditure made in 2017 with plastic money to cover the tax-free threshold, income generated from short-term Airbnb leases, and what applies to the married people and their guests. Detailed instructions are also given for the E2 form in which property and non-lease rental payments are declared.

Τhe entire circular of the Governor of the Independent Public Revenue Authority of the natural persons for the annual income tax statements for the year 2017 of paragraph 1 is as follows:

The annual income tax statement for the year 2017 of paragraph 1 of Article 67 of p.4172/2013 till the specified date. In exceptional cases, when there is an objective and actual impossibility to submit the statement electronically, it may be submitted in a handwritten form to the competent tax registrars. This is also the case when the deadline for submitting the declaration expires at the end of the year if there is a failure to submit it electronically.

The authorization of the tax consultant-accountant for the management of the E1, E2, E3 may be performed with the document of a genuine signature from any administrative authority or from the Citizens Service Centers. In cases when there is an objective and actual impossibility to submit the statement electronically, it may be submitted in a handwritten form to the competent tax registrars. This is also the case when the deadline for submitting the declaration expires at the end of the year if there is a failure to submit it electronically. Spouses should jointly submit their tax declaration if they are legally married during the period of their acquisition. Separate tax returns shall only be submitted in the event that civil cohabitation is interrupted at the time of filing the declaration or one of the spouses is bankrupt or has been the subject of legal aid, with the obligation first to inform the Department of Administration and Support of the Competent Tax Authority for the above changes.

As far as foreigners are concerned, the declarations must be submitted in accordance with paragraph 1 of Article 67 until the date specified in the relevant provisions. The same also must be applied to the nationals. When a resident taxpayer of Greece transfers his residence abroad, then the tax submitted according to Statement 1201/2017 Governor’s decision of the Independent Public Revenue Authority until 31.12.2018.

For the deceased people, the submission of the declaration must be in a handwritten form and not electronically, until 31.12.2018 and the required information and the necessary supporting documents must be sent to the Department of Administration and Support of the Competent Tax Authority. The submission of the statement E3 for the parent with the minor child also must be done in a handwritten form, whose child income is taxed in the name of the parent who exercises parental responsibility. In case of bankruptcy, two statements must be submitted. One statement of the bankrupted person must be submitted electronically for the income obtained from the non-bankruptcy property and the second statement for the income acquired from bankruptcy property must be submitted electronically to the Competent Tax Authority.

Income generated from short-term leases of Airbnb-type properties should be submitted in E2 Form and Column 7. The taxation of these is processed at 14% and 15% coefficients. Under code 60 of this Column, all income acquired from short-term leases of real estate, for every property separately, must be submitted via digital platforms, such as Airbnb, etc. Under Code 61 of this Column, collectively all income acquired via short-term subleases of real estate in the tax year 2017 must be submitted. In Column 4 the category of the property as it is submitted in E9 must be submitted.

In Column 17 the type of lease and use of the property are completed.

In the Analytical Statement of Rent, E2 Form, the real estate of dependent children from the parent who exercises parental responsibility must be submitted. These properties are also submitted in Table 1of the second page of the form with the child’s tax number.

For the income tax statement E9 the updated taxpayer data, with his e-mail address must be used. A non-resident taxpayer is required to confirm his country’s tax residence.

Natural persons, who apply to change their tax residence for 2017, must follow the procedure provided in the Statement 1201/2017 of the  Decision of the Governor of the Independent Public Revenue Authority, while for the previous 2017 year, they should follow the procedure of Statement 1177/2014 of the Circular, but with the supporting documents provided in Statement 1201/2017 of the Decision of the Governor of the Independent Public Revenue Authority.