This year’s tax declarations include pitfalls, strict conditions, and “hidden” points requiring attention for property owners claiming tax exemption on rental income—either because they opened previously vacant properties or shifted them from short-term to long-term leasing.

Whether they will ultimately receive the tax-free benefit is not certain, but will depend on the proper completion of the forms and especially on how the property’s history is reflected in previous years.

The instructions from the tax authority show that the process requires absolute accuracy, as the conditions and codes used conceal “traps” that can easily lead to the loss of the exemption. At the center are owners with vacant properties, as well as those returning from Airbnb-type rentals to long-term leases, who must prove not only what they are doing today but also what they declared in previous years.

A decisive role is played by the completion of form E2, where in practice the exemption is either “locked in” or lost. Income must be declared using specific codes in column 17: code 64 for properties that were vacant, 65 for properties used for short-term rentals, while 66 and 67 concern leases of at least six months in the respective cases. Only if the correct codes are used and all conditions are met is the amount transferred to codes 119–120 of form E1 as exempt income. Otherwise, it is taxed normally.

The major trap, however, lies not only in the codes but also in how the tax authority “reads” the declaration. Even exempt income must be declared normally, while much of the data is pre-filled and based on third-party information, such as short-term rental platforms. This means that an incorrect entry or indication can automatically pass into the declaration and “lock in” the tax profile, making it difficult for the taxpayer to correct.

The property’s history is equally critical. The tax authority does not examine what happened in practice, but what has been declared. A property that appeared as a primary or secondary residence, owner-occupied, or granted free of charge is not considered vacant and is excluded from the exemption—even if it was not actually used.

An important filter is also the three-year requirement, as the property must appear as vacant for the years 2022, 2023, and 2024. If this period is not fully covered, the exemption is not granted. At the same time, the duration of the new lease is crucial—it must be at least three years, as shorter contracts are not eligible for the exemption.

Examples from the tax authority clearly outline the framework: a property vacant only for the last two years is not eligible; a property declared as a secondary residence is excluded; and even a property vacant for three years loses the exemption if the new lease is shorter than three years.

In simple terms, the rental tax exemption operates as a “precision mechanism.” It is not enough for the property to have been vacant or rented out. All conditions must be cumulatively met and correctly recorded in previous years’ declarations. Otherwise, even a small detail is enough to turn tax-free income into fully taxable income.