Did you know that if you are the landlord of a property rented under a lease agreement signed before the Urban Lease Regime (RAU) came into force and which has not been updated to the New Urban Lease Regime (NRAU), you can benefit from IRS exemption on property income?
What are the conditions for the IRS exemption?
This exemption is provided for in Article 46-A (2) of the Tax Benefits Statute (EBF), introduced by Law 82/2023 of 29 December, and remains valid for the duration of the lease.
In addition, the properties covered by these contracts are also exempt from paying Municipal Property Tax (IMI) for the same period. To benefit from these exemptions, the landlord must submit an application to the relevant tax office.
Who can benefit from these exemptions?
The maintenance of old rents under the pre-NRAU regime may be due to various reasons, such as:
- The tenant is aged 65 or over;
- Has a proven degree of disability equal to or greater than 60 per cent;
- Has a corrected gross annual income (RABC) of less than five times the annual national minimum wage.
If this is your case, don’t hesitate to contact us. Our team is available to answer your questions and help you through the process.
