The government will refund up to 800 euros per year for individuals renting primary or student accommodation through a new automated subsidy program introduced in a draft bill by the Ministry of Economy and Finance, currently under public consultation. This assistance, starting in 2025, will be provided annually in November without the need for an application, based on information submitted to the tax administration.
Eligibility is determined by specific income and property criteria: for single individuals, the income limit is set at €20,000; for married couples, it’s €28,000 with additional allowances for children; single-parent households begin at €31,000. Students only need to meet the income requirement, provided they declare their rent themselves.
The aid amount is calculated as one-twelfth of the total rent paid in the previous year, which can reach up to 800 euros, plus an additional 50 euros for each dependent child. The calculation will use the declared rent amount, not the agreed rent. The automated system will process this based on income and rental declarations submitted by the end of September each year. There will be no opportunity for corrections or appeals once submitted.
The rental declaration must be completed by July 15 and accurately reported on the tax return. Incomplete or incorrect data will result in the subsidy being denied.
Furthermore, if cross-checks indicate that any reported information is false, such as unpaid rent or fictitious income, the state will reclaim the funds with interest and will bar the individual from receiving any related aid for the next three years. The penalty will apply based on the late payment interest rate for tax debts.
For 2025, a transitional measure allows property lease returns to be submitted without penalty until July 15 to be considered in the first payment cycle. From 2026 onward, the system will rely solely on accurate and timely tax data, with no late submissions permitted.
Essentially, the new “rent bonus” establishes a fully automated social assistance payment system, removing the need for traditional applications and placing the responsibility for accuracy on the taxpayers themselves.
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