The government and the market are anxiously waiting to see the response that the “I Renovate – I Rent” program will have as of next Friday when it is launched. The program aims to provide an incentive to owners to upgrade their properties and put them on the market through long-term leases.
From February 21 interested parties will be able to secure an increased subsidy rate, while the maximum amount of expenditure is also higher. The program, amounting to 50 million euros, is aimed at those who have an empty property of up to 100 square meters and wish to utilize it but cannot due to the need for repair work.
The program had not received any particular response to date, as a result of which it was deemed necessary to improve its terms with recent legislative regulation. The subsidy that interested parties are entitled to now reaches 60%, from 40% previously. Therefore, the limit of expenses that owners can make in order to receive the subsidy has been increased from €10,000 to €13,500, with the amount of the subsidy now reaching €8,000 from €4,000 previously.
The conditions for joining the program are that the annual family income be up to €40,000 and the real estate of the owner of the empty home be up to €300,000. Also, the property must not have been declared as a primary residence, not have been declared as rented, and must be registered as empty in the E2 form that accompanies the income tax return for the last three years.
A prerequisite, after the renovation is completed, is of course a lease contract for a minimum of three years, which now, based on a recent law, ensures a three-year tax exemption from rental income tax, as long as the property has remained closed for the last three years.
Under the program, the renovation of properties must be completed within six months, so that they are ready for renting. In the event that the rental does not take place, sanctions are provided for, such as the return of the subsidy granted for the renovation.
The long-term lease is a condition for the payment of the second installment of the subsidy (in addition to the 50% advance payment that can be collected at the start of the work).