Tax exemption for three years on rental income is now available from this year for owners of vacant properties who converted them to long-term rentals or Airbnb during 2025. Specifically, the new tax law makes this exemption effective from November 2025. The new provisions expand the scope of application: for families with three or more children, the exemption applies to properties over 120 sq.m., increased by 20 sq.m. for each child above two. If tenants leave within the three-year period, the exemption continues for the remaining period if the property is re-rented. For rentals to medical/nursing staff, educators, and uniformed personnel, the tax exemption applies for rentals of at least 6 months.
Vacant properties: “Clean” transition from short-term to long-term rentals
To secure the tax exemption, specific requirements must be met. A basic prerequisite is the timely declaration by December 5, 2024, on the special tax authority platform, of residences that remained vacant or short-term rental properties to be converted to long-term rentals, in order to “lock in” the exemption for rents collected in 2025.
Those who declared properties late, even if meeting other requirements, are not entitled to the exemption bonus. Regarding properties used for short-term rentals, inclusion in the regulation requires that the property was legally and exclusively available for short-term rental during tax year 2024, provided the new long-term rental contract was established within 2025. Additionally, all related short-term rentals must have been properly declared to tax authorities and no other rental declaration (long-term) should have been submitted before the new contract began. This means the transition from short-term to long-term rental must be clean and fully reflected in tax records.
Details in form E2
For vacant properties, the requirement is that they were declared as empty in form E2 or not declared as rented, owner-occupied, or freely provided in tax years 2022, 2023, and 2024. Once a long-term rental contract of at least three years duration is signed, and the property meets other criteria—main areas up to 120 sq.m., timely declarations in E2 and income tax returns—the landlord is entitled to full income tax exemption for rents collected during the first 36 months. If the tenant leaves the residence, the exemption continues until the three-year completion if within three months the owner signs one new three-year primary residence contract. If this rental is also terminated, further tax exemption is lost.
The exemption also applies when the property meeting the requirements is rented for at least six consecutive months to medical or nursing staff, educators at all levels of public education, and uniformed personnel of the Armed Forces and Security Corps, provided it is not used for short-term rental within the three years.
If during the three-year period the residence remains without a tenant, the exemption ceases from the tax year the property became vacant. It is also permanently lost if the property remains vacant after a second tenant for the remaining period. Additionally, if the property returns to short-term rental status before completing 36 months, the exemption ceases retroactively from the first year, resulting in tax liability for rental income that was not previously taxed.
