A wave of inspections on rental contracts with suspiciously low rent prices is being launched by the tax authority, following hundreds of cases discovered in rent subsidy applications that moved outside the sphere of actual market prices. According to the plan, cross-checks will be targeted and will begin immediately after completing the process of submitting amended tax returns from taxpayers who had incorrectly declared rental amounts and received reduced rent subsidies.
At the core of the inspections are rental contracts showing large deviations from data available to the Tax Office through banks, energy providers and other agencies. Special attention will be paid to declared rents that don’t correspond to tenants’ total living costs, as well as glaring cases where amounts have been artificially undervalued. These involve under-the-table agreements between landlords and tenants so that actual rent isn’t declared and artificially lower rent appears on paper.
Already, findings reveal that thousands of leases have either not been declared at all or show prices that don’t reflect reality. A characteristic example is a 107 sq.m. apartment in Chania declared with rent of just 5 euros per month, while similar phenomena are found in many other areas of the country, such as in Attica: 10 euros for 30 sq.m. in Agios Dimitrios, 20 euros for 133 sq.m. in Ilioupoli, 25 euros for 62 sq.m. in Galatsi.
Statistics for rent subsidies reinforce suspicions about “black market rent” as out of approximately 900,000 beneficiaries, 180,000 declared rent up to 100 euros, while 630,000 reported amounts between 100 and 400 euros. Only 10% declared rent above 400 euros, despite the housing market being in a continuously upward trajectory due to the growing housing crisis.
Specific cases with extremely low rents that have caught the tax authority’s attention include:
- Aigaleo: 88 sq.m. Declared monthly rent: 10 euros
- Ampelokipoi Thessaloniki: 66 sq.m. Declared monthly rent: 10 euros
- Galatsi: 62 sq.m. Declared monthly rent: 25 euros
- Ilion: 75 sq.m. Declared monthly rent: 20 euros
- Agios Dimitrios: 30 sq.m. Declared monthly rent: 10 euros
- Ilioupoli: 133 sq.m. Declared monthly rent: 20 euros
- Chalandri: 119 sq.m. Declared monthly rent: 30 euros
- Nea Kydonia (Chania): 107 sq.m. Declared monthly rent: 5 euros
- Peristeri: 111 sq.m. Declared monthly rent: 10 euros
What changes from New Year’s for “black market” rent
Aiming to detect “black market” leases from January 1, 2026, every euro paid for housing – whether for primary residence, vacation home or student apartment – must pass through the banking system. The economic team knows this measure won’t eliminate tax evasion through “black market” rent but will lead to greater transparency and help tax authority cross-checks. Those who don’t pay rent through banks will be excluded from subsidies, even if they meet criteria. Meanwhile, property owners receiving cash rent won’t be entitled to the 5% gross income deduction, while businesses paying cash rent will lose the expense deduction.
