The rent subsidy turned out to be a “Scottish shower” for thousands of beneficiaries, with the “hot” being the automatic credit of the subsidy and the “cold” the fact that the final amounts they received were much smaller. The result was serious backlash when many tenants saw the amounts credited to their accounts not exceeding 20, 30, or 40 euros, while monthly rents are multiples of these amounts, and several lost additional subsidies for children.
The main cause of the large discrepancies was incorrect rent declaration, while additional problems arose when beneficiaries had not declared an IBAN or had declared wrong bank account numbers, had not submitted electronic lease agreements, or documentation was incomplete, resulting in several being excluded from the subsidy.
Faced with this confusion, the Ministry of Finance decided to give a second chance, providing the opportunity to submit an amended E1 declaration until December 30, 2025, for those who had declared monthly rent instead of annual rent, as required for proper subsidy calculation, and to correct any errors in their details.
The rent subsidy mistakes
The mistakes identified are as follows:
- Incorrect or incomplete declaration of annual rent expense: In thousands of cases, monthly rent was declared as annual in the E1 form, resulting in the tax authority crediting only 1/12 of the actual amount. Thus, many beneficiaries received refunds of only 20, 30, 40 euros, while the subsidy is calculated from the annual rent expense of 2024, either for the main residence (codes 811–816) or for children’s student housing (codes 817–822).
- Small subsidy due to co-ownership or short-term lease: A significant number of those who received small amounts either shared the rent with other contracting parties in the lease or had rented the residence for only a few months in 2024. For example, a taxpayer who rented an apartment from September 1, 2024, with a monthly rent of 200 euros had a total expense of 800 euros for four months, resulting in the subsidy corresponding to 1/12 of the annual expense being only 67 euros.
- Confusion with the increase for dependent children: According to the ministerial decision, the basic subsidy for the main residence amounts to up to 800 euros annually and is increased by 50 euros for each dependent child declared in the E1 form. In cases of marital separation, the increase applies to both parents without limitation regarding the 1/12 of the annual lease expense. The wording of the ministerial decision creates the impression that the amount for children is added directly to the maximum limit of 800 euros. However, the tax authority states that the subsidy is calculated as 1/12 of the annual lease expense, with a maximum amount of 800 euros increased by 50 euros per child, without exceeding 1/12 of the expense. In practice, this means that the increase for children does not apply in cases of lower rent. For example, if a tenant with two children pays an annual rent of 12,000 euros, 1/12 of the expense amounts to 1,000 euros. They are entitled to the maximum subsidy amount of 800 euros increased by 100 euros for two children. Therefore, the subsidy they will receive is 900 euros, as this is less than 1/12 of the annual expense. Conversely, if a tenant with two children pays an annual rent of 6,000 euros, then the subsidy amount equals 1/12, i.e., 500 euros. No increase is calculated due to the two children, as the subsidy cannot exceed the amount of 1/12 of the annual expense.
- Undeclared IBAN: Those who had not declared an IBAN to the tax authority remained without subsidy. They are called to register it immediately since without it, payment cannot be completed.
How the rent subsidy is calculated
As the Ministry of Finance clarifies, the rent refund is calculated as 1/12 of the annual rent expense declared in the tenant’s tax return (E1) for the tax year 2024, i.e., in the declaration submitted in 2025.
There are maximum refund limits:
- 800 euros for a tenant without children
- 850 euros with one child
- 900 euros with two children
- and +50 euros for each additional child.
The ceiling is activated only if the declared annual rent exceeds these amounts; otherwise, 1/12 of the actual expense applies. It should be noted that in case of student housing, an additional amount of up to 800 euros per student residence is received.
Who should submit an amended declaration
From tomorrow, beneficiaries can contact the tax authority at 1521 for clarifications. Those who identify errors in their declarations regarding the rent they paid can submit amendments until the end of December to be included in subsequent payments. The refund is paid automatically to the declared IBAN without requiring an application. Those who have not declared an account can do so immediately for supplementary payments to be made.
Amended declarations submitted by December 12 will lead to payment by December 30, while those submitted by December 30 will be paid by January 15, 2026.
In which cases is a request submitted to the tax authority
Special cases are provided for eligible tenants who submit relevant documents through the “My Requests” application on the myAADE digital portal, no later than December 31 of the year the subsidy is paid.
Specifically, in cases where the landlord:
- is not required to submit a declaration of informational elements for real estate leasing (Public Sector) or
- submits a handwritten declaration of informational elements for real estate leasing (e.g., minors)
Eligible tenants must submit by October 20, 2025, the required documents per case (lease agreement, rent payment receipts, study certificate) to the competent tax authority service for receiving their income tax declaration. Document submission is done digitally through the “My Requests” application on the myAADE digital portal (myaade.gov.gr) and is necessary for the subsidy to be paid by the end of November 2025.
If the above documents are submitted after October 20, 2025, and no later than December 31, 2025, the subsidy payment will be made in the following year.
Also, in special cases of non-payment of the subsidy, specifically due to:
- incorrect application of property criteria for student housing
- failure to establish the conditions for granting the subsidy for all student residences of a family
- rent disagreement due to payment of a larger amount, provided this amount has been included in the E1 form of the tenant’s income tax declaration and results from contractually agreed terms, eligible tenants can submit by December 31, 2025, digitally through the “My Requests” application on the myAADE digital portal (myaade.gov.gr), relevant documents (lease agreement, study certificates, bank receipts for rent payment) to the competent tax authority service for receiving their income tax declaration, for the subsidy to be paid in the following year.
