Uncollected Rents: How to Avoid Paying Tax on Them

Non-payment of rent by unreliable tenants is a major headache for many property owners. However, the law allows you to freeze the tax on income you never actually received — provided you follow the correct procedure before submitting your final tax return. 💡

What Are the Requirements for Uncollected Rents?

To avoid being taxed on money that never reached your pocket, a court decision or payment order must have been issued against the tenant by the tax filing deadline.

Lawsuits for eviction or rent claims are also accepted, as long as they have been legally served with official proof by a court bailiff.

Without these documents, the tax authority considers the amounts as collected income and imposes income tax accordingly.

What Is the Procedure with AADE?

The process is now digital and requires careful attention to the following steps:

• Submit form E411 through the “Requests” application on the AADE platform.
• Electronically file the required supporting documents (e.g., eviction order) with your local tax office.
• Correctly complete form E2, specifically codes 125–126 for uncollected rents, which are then automatically transferred to form E1. 💰

Are There Any Pitfalls That Could Lead to Reassessment?

Yes, there are specific exceptions. The regulation applies only to individuals — not companies or properties used for short-term tourist rentals.

An important “trap” concerns compensation for use: if the lease has expired but the tenant remains in the property, those amounts are not recognized as uncollected rents.

Finally, if you fail to submit the documents on time, the tax authority may issue a new assessment and charge the corresponding tax.

What Applies to Heirs and Co-Owners?

Heirs may benefit from the regulation by submitting the necessary legal documents proving their inheritance rights.

In cases of co-ownership, the issued legal documents cover all owners, provided that the details match the lease agreements that have been officially filed.