On March 13th, 2025, Ordinance no. 106/2025/1 was published, approving the “Communication of the Tenant or Subtenant” (CLS), allowing tenants, as of August 1st, 2025, to communicate directly to the Tax and Customs Authority (AT) the conclusion, amendment or termination of lease or sublease agreements, in cases where landlords do not comply with this obligation.
Main points to note:
– Landlords’ obligation: Landlords are still obliged to notify the Tax and Customs Authority of the conclusion, amendment or termination of lease or sublease agreements.
– Tenants’ option: If the landlords do not comply with this obligation, tenants may optionally make this notification through the Finance Portal, using the Communication of the Tenant or Subtenant (CLS).
– Benefits for Tenants: This measure allows tenants to access support such as extraordinary rent support or the “Porta 65 Program”, as well as making it possible to deduct the rents paid from the IRS, whose maximum deduction limit has been increased to 700 euros per year.
– Communication Procedure: The CLS must be submitted electronically on the Finance Portal and accompanied by the lease or sublease agreement, as well as the documents proving the elements communicated.
This initiative aims to increase transparency in the rental market and combat informality, allowing the Tax and Customs Authority to better control and cross-check information.
