Three-Year Tax Exemption for Vacant Properties and Airbnb Converted to Long-Term Rental

14 March, 2026 11:29

How property owners can secure it to pay less tax.

Property owners who in 2025 brought vacant homes or Airbnb-type properties onto the long-term rental market will be exempt from income tax on rental income for a three-year period, starting from this year. ✅

The tax exemption translates into thousands of euros in net gain. For an owner collecting €1,000 per month from one or more previously vacant properties, the total tax benefit over three years can reach €5,400, if taxed at 15%.

For those collecting additional rental income from multiple properties, the benefits are even greater, as all such income is added together and taxed at 35% or 45%, making long-term rental particularly attractive.

In practice, the tax on rental income from these properties drops to zero for three years, as the owner will pay no tax on rents collected for the years 2025–2027 — only in 2029.

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✅ What are the conditions

To secure the tax exemption, specific and strict rules must be met regarding when a property is considered "vacant" and in which cases the exemption is forfeited.

The basic requirement is that taxpayers must have declared to AADE on time their vacant homes or Airbnb-type properties, in order to "lock in" the exemption for rental income collected in 2025.

Those who rushed to declare their properties to the tax authority retroactively are not entitled to the exemption, even if they meet all other conditions.

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1) For properties previously on short-term rental (Airbnb)

Eligibility requires that:

• The property was used legally and exclusively for short-term rental during tax year 2024
• The new long-term lease was concluded within 2025
• All related short-term rentals were properly declared to the tax authority
• No other rental declaration (long-term) was submitted before the start of the new contract

➡️ This means the transition from short-term to long-term rental must be clean and fully reflected in tax records. 📑

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2) For properties that were "vacant"

The requirement is that they must have been:

• Declared as empty on form E2, or
• Not declared as rented / self-used / granted for free in tax years 2022, 2023, and 2024

Once a long-term lease of at least three years has been concluded and the property meets the remaining criteria (e.g. main areas up to 120 sq.m., timely declarations on E2 and income tax return), the landlord is entitled to a full exemption from income tax on rents collected during the first 36 months. ✅📌

If the tenant vacates, the exemption will continue until the three-year period is completed, provided that within three months the owner concludes one and only one new three-year primary residence lease. If that lease is also terminated, the remaining exemption is forfeited. ⚠️

The exemption also applies if the eligible property is rented for at least six consecutive months to:

• Medical or nursing staff 👩⚕️👨⚕️
• Teachers at all levels of public education 👩🏫
• Uniformed personnel of the Armed Forces and Security Services 👮♂️

provided the property is not used for short-term rental during the three-year period.

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⚠️ When the exemption is forfeited

The tax exemption is not unconditional. If during the three-year period the property becomes vacant and remains without a tenant, the exemption ceases to apply from the tax year in which the property became vacant. ❗

It is permanently lost if the property remains vacant after a second tenant as well. Furthermore, if the property returns to short-term rental before the 36-month period is completed, the exemption ceases retroactively from the first year, resulting in an obligation to pay tax on rents that had already been exempted. ⛔

➡️ It is clear that careful tax compliance and stability of the tenancy are decisive factors in maintaining the tax benefit. ✅

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