The AIL states that “the recent fiscal measures announced by the Government are clearly insufficient given the current and sought rents by landlords, which seem to be in an unstoppable upward spiral.”
The recent “moderate rent thesis” (up to 2,300 euros per month) suggests, for tenants, “an impetus for rent increases resulting from the tax benefit that will be granted to them in terms of IRS,” namely the reduction from 25% to 10% of the withholding tax on rents up to that monthly value and the decrease of VAT to 6% on works carried out in rented properties.
Considering the increase for tenants of the rent deduction limit from 600 to 900 euros annually is “clearly unfavorable” to them, AIL insists on the need to improve the proposal during the parliamentary discussion of OE2026.
Among the proposed measures is the extension of this tax deduction to “all residential rents,” regardless of the year of contract signing or rent amount, “as it is not acceptable” to maintain “the discrimination relative to rents from contracts signed before 1990,” which have also been updated annually.
Updating the amount of this tax deduction from the current 15% to a minimum of 20%, increasing the deduction limit to twice the value of the Social Support Index (IAS) to be approved for 2026, and allowing the deduction of expenses with works in place of landlords, when authorized by them, are the other three measures advocated by AIL.
