Employers evading taxes: Is there a way out?

There are no exact figures on the number of rented apartments in Serbia, but according to last year's census, 123,000 people said they lived in other people's apartments. Less than 2,000 property owners paid the apartment rental tax. Source: MONDO / Uroš Arsic.

The prices of rental apartments have skyrocketed over the past year due to the solvency of foreigners, which has drawn attention to the issue of earnings and taxes. However, it is difficult to track down those who rent apartments. The question is how to regulate the apartment rental market, writes RTS.

"When you enter the RGZ register, you have an item - rental property, the municipality in Belgrade where it was issued, for three months only one property. Is that normal? Of course not," says Milic Ђokoviћ, a licensed appraiser and forensic accountant. However, subtenants are visible to professional property managers. Under the Residence Act, they are required to list all rented apartments, and they take the data from the Infostan database. "In modern complexes with more than 200 apartments, it is very difficult to identify all apartment owners, especially if there are many foreigners among them. There are 200 apartments in one building we manage. One foreigner has 24 apartments in her property, and it is logical that she will not live in all the apartments," explains Љubiša Banovački, president of the Association of Professional Managers in Belgrade.

The prices of rental apartments for tenants are high. For those who buy apartments to rent out, it's a great way to make money, says the economist. They are the ones who are raising prices.

A lawyer Nikola Premović sees the solution in changing the legislation regulating the rental of apartments and introducing a mandatory form of concluding a rental agreement from a competent notary. "In this case, notaries automatically file a real estate income tax return. In this way, the state will have a clear and accurate picture of the number of apartments issued through the relevant notaries and the tax office," Premović explains. In legal states, both tenants and landlords are protected by law. "There are over 100 laws in England that independently regulate residential lettings. The property owner must get approval from the bank if they possibly have a mortgage. He should take out property insurance again to protect himself against the actions of the tenant or to protect himself from the tenant if the tenant is injured in the house," says Nebojsa Nešovanović, director of international real estate consultancy CBRE.

The RTS has learned that the tax office is considering the introduction of electronic tax returns for those who rent out apartments. The changes to the Residence Act and the introduction of mandatory submission of data on rented apartments by professional property managers are seen by experts as a way to introduce more order in rental properties. In any case, you can start by forming a central register of rental properties and updating it regularly. (EURACTIV.rs)