Real Estate: Enhanced incentives for shifting from airbnb to long-term rentals

Changes are underway regarding the requirements for a three-year tax exemption on properties switching from short-term (e.g., Airbnb) to long-term leases.

According to information, the Ministry of National Economy and Finance is moving forward with a significant legal adjustment. Specifically, the minimum required duration of short-term leasing for eligibility for the three-year tax exemption may drop from three years to just one, if the owner transitions to long-term rental.

This modification aims to provide strong incentives for more property owners to pivot to long-term rentals, bolstering the availability of homes for permanent use. Furthermore, reducing the required period for staying on short-term rental platforms simplifies the shift, making the favorable tax terms more accessible.

However, the conditions for tax exemptions for vacant properties remain unchanged, specifically requiring three years of “emptiness.”

Essentially, other demands by property owners, submitted via POMIDA, have been dismissed.

According to property owners:

The regulation remains inaccessible to many renters with urgent housing needs, especially on islands and in rural areas. These include substitute teachers, rural doctors, police officers, border guards, and other public or private sector workers who prefer one-year leases.

Additionally, most property owners are excluded from this regulation. They argue that investing in and renting out their properties under this framework would leave them vulnerable to tenants’ whims. If tenants leave or fail to pay rent, the owner loses the tax exemption not just for the future but also for the year the property became vacant.

To avoid creating insecurity and deterring owners, POMIDA believes the 36-month tax exemption should apply strictly to the property itself, regardless of tenant changes during that period.

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