The government has announced that it will now charge value added tax on short-term (up to 30 days) tourist rentals. This tax will be 21 per cent.
But the thing is, if you paid VAT (usually 10%) on the purchase of a new property, it turns out that you are entitled to offset it against the VAT on tourist invoices. You can also deduct VAT on light, water and gas bills from the tax paid.
Here is an example: a new flat costs 200,000 euros, so the tax is 20,000 euros. After the purchase, you rented out the flat to tourists and invoiced 10,000 euros, adding 2,100 VAT to it. Since, in effect, the state owes you 20,000, you put 2,100 in your pocket.
However, experts warn that there may be a situation in the future where the offset tax will have to be refunded. A typical example is the sale of a property before the 10-year period has expired, provided the high-demand neighbourhood has ceased to be one.
