Three years of tax relief for homeowners who rent out vacant properties – The changes for larger homes

Thousands of spot owners who person been hesitant to rent retired their homes present person a caller inducement to bash so. Under the latest provisions, landlords who person vacant oregon short-term rental properties into semipermanent leases tin unafraid up to 36 months of tax-free rent, provided they conscionable definite conditions and deadlines.

As Proto Thema reported a period ago, the measurement is included successful the Finance Ministry’s caller taxation betterment bill, presently nether consultation. It is expected to instrumentality effect instantly upon work successful the Government Gazette, apt by precocious October oregon aboriginal November.

The caller model extends the existing incentives for leases signed done December 31, 2026, portion updating the conditions nether which landlords could suffer the benefit. It besides introduces caller protections for spot owners and broadens eligibility to see homes that were antecedently excluded. The extremity is to bring much affordable semipermanent rental lodging to the market—especially for families with children, arsenic good arsenic for doctors, teachers, and uniformed personnel.

What Will Apply from November

Landlords who rent retired a location that has been vacant for astatine slightest 36 consecutive months volition person a three-year exemption from income tax, initially applying to homes of up to 120 quadrate meters.

However, Article 9 of the draught measure sets the measure’s validity done December 31, 2026, portion besides revising eligibility requirements.

Under the caller framework:

• Tenant departures won’t cancel the exemption. If a tenant leaves early, the landlord keeps the payment for rent already received and has 3 months to find a caller tenant to proceed the exemption.
• Larger homes are included for large families. For families with 3 oregon much children, taxation exemptions volition present besides use to homes larger than 120 sqm, addressing the existent lodging needs of larger households.
• More flexibility successful lease duration. Previously, landlords renting to nationalist assemblage workers—such arsenic doctors, nurses, teachers, and uniformed officers—often mislaid eligibility due to the fact that tenants relocated earlier completing 3 years. To code this, the caller rules let for shorter leases of astatine slightest six months, arsenic agelong arsenic they autumn wrong the three-year period. Consecutive rentals to specified tenants (for example, school-year leases for teachers) volition inactive suffice for the afloat exemption.

This flexibility aims to marque long-term rentals much attractive, particularly successful regions and islands wherever spot owners had turned chiefly to short-term rental platforms similar Airbnb.

Attention: E2 Declarations Required

The taxation exemption applies lone to homes that were previously declared arsenic “vacant” earlier being rented out. To qualify, properties indispensable person been listed arsenic “vacant” connected form E2 for 3 consecutive years earlier leasing.

Alternatively, properties antecedently utilized for short-term rentals indispensable person been registered connected the short-term rental registry for astatine slightest 1 twelvemonth earlier converting to semipermanent leases.

This means that landlords wishing to commencement a caller semipermanent lease successful 2025 indispensable guarantee that their spot was declared “vacant” connected the E2 for 2022, 2023, and 2024, oregon that it was listed arsenic a short-term rental for astatine slightest 1 twelvemonth earlier the change.

In each cases, the spot indispensable beryllium placed nether a long-term rental by the extremity of 2026 to unafraid the three-year taxation benefit.

Surface Area Limits

The basal eligibility bounds remains 120 quadrate meters, but the caller rules summation this threshold for larger families.

According to Article 9:

• Families with three children tin suffice for homes up to 140 sqm.
• Families with four children tin spell up to 160 sqm.
• Families with five children suffice for up to 180 sqm, with an further 20 sqm for each kid beyond the fifth.

This enlargement allows much spacious homes to beryllium rented to families with greater lodging needs.

When the Exemption Is Lost

The three-year exemption ends if:

• A tenant leaves and no caller tenant is recovered wrong 3 months, or
• The spot is listed for short-term rentals (e.g., connected Airbnb), adjacent temporarily.

In these cases, the landlord keeps the payment for rent already exempted but loses eligibility for the remaining period. Future rental income volition beryllium taxed astatine the mean rate, and retroactive taxes oregon penalties whitethorn use if the spot is reclassified arsenic a short-term rental.

Examples

• Vacant property: An 85 sqm flat that was declared vacant lone successful 2023–2025 is rented retired successful November 2025. It does not suffice for the exemption due to the fact that it wasn’t listed arsenic vacant successful 2022.
  However, if the aforesaid flat is rented after January 1, 2026, it becomes eligible for the 36-month taxation relief, provided each different conditions are met.
• Short-term conversion: A location that was utilized for short-term rental successful 2024 and converted to a semipermanent lease aboriginal that twelvemonth qualifies for the exemption. If the conversion happens lone successful 2025, the exemption applies starting in 2026.
• Public assemblage tenants: On an island, if a teacher leaves aboriginal successful May and the landlord rents to different eligible tenant—such arsenic a constabulary serviceman oregon infirmary doctor—the exemption continues uninterrupted.
  But if the landlord lists the location connected a short-term rental level during the gap, the full taxation payment is lost.
• Extended vacancy: If a spot becomes vacant (for example, owed to a tenant’s wellness issues) and a caller tenant is recovered aft 5 months, the rent earned earlier the vacancy remains exempt. However, each aboriginal rent volition beryllium taxed normally.