Business seat and rental tax
When registering as a sole proprietor you must declare your registered office address.
If the premises are your property, there is no rent and therefore no rental tax.
If the premises are not yours, it matters who owns the premises and on what basis you use them.
If the premises are owned by a family member
In practice a family member may grant you use of the premises free of charge, when there is a justified basis for such use.
In that case there is no rent payment, and therefore no rental tax.
If you rent premises from an individual
If you use premises owned by an individual, as a sole proprietor you must calculate, declare and pay rental tax.
The tax return is submitted via the ePorezi portal on form PPP-PD, and the tax is calculated when rent is paid. When an individual leases real estate to a sole proprietor, it is the sole proprietor as tenant who must calculate and pay withholding tax.
If you rent premises from a company
If you rent premises from a legal entity, the company leasing the premises issues you a rent invoice, which you pay like other business invoices.
In this case you are not required to calculate rental tax for an individual.
How is rental tax declared?
For each rent payment the tax must be calculated correctly and the appropriate return submitted.
Easiest to remember:
1. Your own premises → no rent.
2. Family member's premises free of charge → no rent payment, so no rental tax.
3. Premises of an individual who is not a family member→ you calculate, declare and pay rental tax.
3. Company premises→ you receive a rent invoice.
