Individuals who rent out apartments or other real estate must register rental contracts with the State Tax Service within seven days of signing. Failing to do so risks penalties and income estimation by tax authorities, IPN reports.
Under the law, anyone earning rental income but not engaged in entrepreneurial activity must declare contracts for the transfer of possession or use of real estate. Registration can be done at any State Tax Service office or online through the “e-Registration” service, provided the person has a digital signature.
The income tax rate is 7% of the contract value for resident individuals and 12% for non-residents. Renters must pay this tax monthly by the 25th of each month. If the property transfers after the 25th, the tax payment is due by the 25th of the next month.
If a rental contract is terminated early, the landlord must notify the tax authorities within three days by submitting a special declaration.
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Officials may refuse to register a contract if the submitted documents are incomplete or if the legal representative fails to provide the necessary power of attorney. Additionally, if the contract is not declared or the tax is not paid, the Tax Service may estimate the rental income and take legal action.
Landlords can also pay the tax online through the government service Mpay, selecting the “Income tax for the handing over in possession and/or use of real estate” option.
Real estate experts note that, in the current market, more landlords and tenants are opting for long-term leases, which offer stability for both parties. The typical contract length is one year.