Uncollected rents: exemption from taxation

📈 The number of property owners reporting uncollected rent to the tax office is constantly increasing, both from commercial leases and from primary residence leases.

❓ Questions:
1. What is considered uncollected rent?
💶 Uncollectible rent is considered to be the rent provided for by the contract, but not paid by the tenant within the tax year to which it relates.

2. Is uncollected rent taxed?
❌ No, under certain conditions. Uncollected rents are not taxable, provided that the owner has promptly taken specific legal actions against the tenant and followed the procedure established by the tax administration.

3. What basic condition must be met for tax exemption?
📅 By the deadline for submitting the income tax return, an order for payment or return of rent must have been issued, a court decision to expel or award rent, or an action to expel or award rent must have been brought against the tenant.

4. What procedure should the owner follow?

🖥️ The owner must submit an electronic request for a declaration of uncollected rents to the AADE, by sending form E411 together with, as appropriate, one of the above supporting documents mentioned in question 3, before submitting his tax return.

5. What happens if all required supporting documents are not submitted?
📉 In the event of an incomplete file, the tax administration proceeds to a new clearance of the declaration and does not recognize the declared amounts as uncollectible, resulting in them being taxed normally.