The number of people in Chisinau municipality who lease out lodgings has increased, according to the data of the State Main Tax Inspectorate. The authority said that 2,220 tenancy agreements were signed in 2015, as opposed to 2,328 in 2016. A number of 451 leases were signed during the first two months of this year, IPN reports.

The private individuals who lease out something should know that if they don’t carry out entrepreneurial activities they should pay a tax of 7% of the value of the lease, in accordance with the Tax Code. The persons are obliged to register the agreement at the local tax office within three days of its signing. The relevant tax is paid monthly, by the date of 2 of the month in progress, or in advance.

If the property is leased out after the date of 2, the tax for the given month is paid the next day after lease signing. The tax paid in advance is not refunded from the budget. In case of non-declaration, late declaration or diminution of the tax, the fiscal violation is considered insignificant if the tax for private individuals who do not carry out entrepreneurial activities is lower than 100 lei and if it is lower than 1,000 lei for private individuals who carry out such activities, for each fiscal period apart.

If a lessor intentionally diminishes the rent indicated in the lease, this is liable to penalty.

The housing stock of Chisinau municipality consists of over 120,000 of houses and apartments of all forms of ownership. A sum of 5.4 million lei in rental income tax was collected into the national public budget in 2016.