The “pitfalls” hidden in Form E2 for those who earn income from real estate are clarified by the Independent Authority for Public Revenue (AADE) through a detailed guide of questions and answers.

Form E2 is a crucial part of the tax return for those who earn income from property, as it records in detail all information about rents, property uses, unpaid rents, as well as cases of free concession or owner-use.

The AADE guide aims to clarify issues affecting thousands of taxpayers: from how a property owned by a minor child is declared and how unpaid rents are recorded, to what happens with properties declared as vacant or with short-term rentals such as Airbnb. At the same time, it explains technical issues that often create problems when completing the tax return, such as the electricity supply number for storage spaces or plots of land, the transfer of amounts to Form E1, and the completion of codes related to tax exemptions.

Several key points arise from the guide that property owners should keep in mind:

First, each spouse submits a separate Form E2 for the properties they own, even when a joint tax return is filed.
Second, the rental category of the property must be declared in the relevant column, since the tax treatment of the income depends on it.
Third, unpaid rents can only be declared after the relevant procedure has been completed with the competent authority and an official decision recognizing them has been issued.
Finally, special attention is required for short-term rentals: when the owner rents out up to two properties, they are declared in E2; if there are three or more, the activity is considered business activity and is transferred to Form E3.

Questions and answers from the official AADE guide for completing Form E2

1. Q: How is the spouse’s Form E2 submitted in the case of a joint tax return?
A: In a joint tax return, if the spouse has real estate (full ownership or usufruct), regardless of whether they earn actual or deemed income from it, they are required to submit Form E2 either using their own access codes or those of the liable spouse, by selecting “Spouse/Civil Partner E2.”
This obligation also applies in cases of subletting property. However, for properties used as primary or secondary residences, there is no obligation to submit E2; they are instead listed in Table 5 of Form E1.

2. Q: How do I fill in the column “TYPE OF LEASE – USE OF PROPERTY”?
A: Column 17 must be completed by selecting the type of lease and the category of property use, such as office rental, free concession of residence, vacant property, etc.

3. Q: What options appear in Column 17 (Type of Lease – Use of Property)?
A: The options include various categories such as:

• Rental of hotels, clinics, educational institutions, shops, offices, warehouses, land, or residences
• Free concession of different types of properties
• Owner-use of business premises, offices, warehouses, etc.
• Subletting of property
• Vacant property
• Unpaid rental income
• Income collected from previous years
• Short-term rentals under Article 39A of Law 4172/2013
• Short-term subletting
• Rentals of residences that were previously vacant or listed in the Short-Term Rental Property Registry

4. Q: How do I declare unpaid rent?
A: You must first apply to the competent authority with at least one of the supporting documents required under Article 39(4) of Law 4172/2013 and the relevant circulars. After the process is completed and a decision is issued recognizing the unpaid rents, you may submit Form E2 including the approved amount. Unpaid rents declared in the previous tax year and collected in 2025 must be declared by property category and lease type in the 2025 tax year E2 form.

5. Q: How is a property owned by a minor dependent child declared in a joint tax return?
A: The property is registered in the E2 of the parent who exercises parental responsibility, and in any case in the E2 of the spouse who is primarily responsible for submitting the return. The rental income from the minor’s property is added to that spouse’s income and taxed in their name.

6. Q: Is the column “Declaration Number of Lease Information” filled in when the lease has not been submitted electronically?
A: No. It is filled in only for leases submitted in the electronic application and for specific cases such as certain rental codes (e.g., properties previously vacant or listed in the Short-Term Rental Registry).

7. Q: How is Form E2 submitted if both spouses own property?
A: Both spouses must submit separate E2 forms for the properties they own, even if some or all properties are jointly owned.

8. Q: What electricity supply number should be entered for auxiliary spaces (storage room, parking space) powered by a shared meter?
A: In such cases, enter the nine-digit number 999999999.

9. Q: What electricity supply number should be entered for rented farmland without an electricity meter?
A: Enter the nine-digit number 999999999.

10. Q: How do I fill in the electricity supply number for a vacant property with disconnected electricity?
A: The supply number appears on the electricity meter and on previous electricity bills from the energy provider.

11. Q: When completing E2, I cannot enter the annual rent in columns 13–16. What should I do?
A: Fill in the rest of the columns first. Then enter the annual rent in the field at the end of the entry; once saved, it will automatically transfer to the correct column of gross income based on the selection made in Column 17.

12. Q: Do I need to enter E2 income amounts in Form E1?
A: Once Form E2 is finalized, the amounts from columns 13–16 are automatically transferred to the corresponding codes in Form E1 (Table 4D2). Certain exempt rental income cases are transferred to codes 119–120 in Table 6 of Form E1.

13. Q: Is Column 11 (Actual or Deemed Monthly Rent) mandatory?
A: Yes, depending on the type of lease selected in Column 17.

14. Q: How do I declare rental income from properties previously vacant or used for short-term rentals to obtain tax exemption?
A: When completing Form E2, you declare the gross rental income and select the appropriate code in Column 17 (e.g., code 64 or 65). If the conditions set by law are met, the income is transferred to the tax-exempt income codes (119–120) in Table 6 of Form E1.

15. Q: How do individuals declare income from short-term rentals in the 2025 E2 form?
A: If you rent or sublet up to two properties, the details and total income are pre-filled in Form E2 based on data from the Short-Term Rental Property Registry.
If you rent three or more properties, the income is considered business income and must be declared in Form E3, not E2.

16. Q: What should I do if the E2 form shows rental amounts I disagree with?
A: The amounts come from the electronic lease declaration platform and include all active leases for tax year 2025. You should check the duration of the lease contracts and terminate them if necessary.

17. Q: Do legal entities have to submit Form E2 for short-term rental income?
A: No. Income earned by legal entities from short-term rental contracts starting 1 January 2024 onwards is considered business income, not property income, and must be declared in Form E3 instead of E2.