DECISION OF THE INDEPENDENT PUBLIC REVENUE AUTHORITY (AADE) FOR THE SHORT-TERM RENT OF REAL ESTATE

You are reading page DECISION OF THE INDEPENDENT PUBLIC REVENUE AUTHORITY (AADE) FOR THE SHORT-TERM RENT OF REAL ESTATE

In the context of the sharing economy, the decision for the short-term lease of real estate was signed by the Governor of AADE. This decision identifies, first, the obligations of all parties involved, second, the registration process in the Register of Short-Term Residence and third, the declaration of short-term residence.

The ultimate goal is to create the procedures that will be completed electronically, through the site of AADE. At the same time, digital platforms were created.

The validity of this decision is for short-term leases concluded from 1.1.2018 onwards and in terms of the tax year 2017, the income will be declared in the tax return forms.

The obligations of the Administrator (who is either the owner of the property or the usufructuary or the lessor or a third party) is obliged in the following actions:

1. Registration in the Register of Short-Term Residence Properties
2. Deposit of the Short-Term Residence Declaration to each tenant,
3. Registration in the Register of Short-Term Residence Properties
4. Public submission to the Deposits and Loans Fund (TSI) of the amount corresponding to unknown income beneficiaries,

If the Administrator leases more than one space in the same property, it should be emphasized that he is obliged to obtain a different registration number for each of them, since for each property a single Administrator is appointed.

The following information is entered in the Short-Term Residence Declaration per short-term lease:

• The registration number in the Register of Short-Term Residence Properties,
• the total amount of rent agreed or the total amount according to the cancellation policy,
• the naming of the digital platform,
• the details of the tenant,
• the start – end of the rental and
• the rent payment process.

Finally, it should be noted that in case of violation (1. Non-entry in the Register of Short-Term Residence Properties, 2. Non-entry in a prominent place of the registration number in the Register of Short-Term Residence Properties, as well as the number of the Special Operation Sign (ESL) when posted digital platforms) an independent administrative fine of 5000 euros will be imposed on the Administrators.