Short-term rentals down by 25%, convenience slashed with new tax rates

The upcoming budget law introduces significant tax incentives for long-term rentals, potentially reducing tax rates by 20-25 percentage points. This shift aims to encourage landlords to opt for agreed rents rather than short-term rentals. The new system will feature four tax rates for long-term leases, with the lowest at 1% for under-35 tenants. In contrast, short-term rentals will face higher flat tax rates of 21% and 26%. The changes are expected to benefit owners of vacant properties, particularly in high-demand areas. However, existing contracts may not be eligible for the new rates, limiting immediate benefits. The law's specifics are still pending, including potential income limits for tenants.