Plans for higher short-term rental income tax and cap on days

The government is considering a series of measures in order to increase the supply of properties for long-term rental, including higher taxes and interventions to contain short-term rentals and the number of vacant houses.

The Finance Ministry is pondering the introduction of a new set of brackets and rates for taxing short-term rentals, possibly raising the rate to that of corporate tax (22%), and the reduction of the rental income tax rate for owners who open their assets to long-term leases.

Another measure will be a cap of 60 or 90 days per year to short-term rental per asset, likely amounting to 60 days in areas with the biggest shortage in flats.