Tax incentives for landlords to lower rents

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The Cabinet of Ministers on Thursday, May 7 approved tax incentives to encourage lessors to reduce rents and ease the burden borne by enterprises and individuals trying to keep up with their obligations in an economic downturn.

There were calls for the state to somehow influence the situation with rents, to which the government stated that under the constitution it could not interfere in private contracts.

Instead, the state decided to offer landlords incentives to lower rents.

Finance Minister Konstantinos Petrides said incentives will be given to owners – private individuals and companies – who will reduce rents by three months.

They will be granted a tax credit of 50% of the reduced amount, provided that it is not lower than 30% of the total rent and does not exceed 50% of the rent.

The proposal must be approved by the House of Representatives, as well as by the European Commission.

Source