The number of people and companies declaring their rental income increased by 53 per cent between 2015 and 2016.

A total of 8,099 taxpayers declared a total of €184.4 million in income, representing a dramatic increase in the amount being declared, up from €62 million the year before.

The number of companies declaring rental income has also been increased from just 233 in 2014 to 850 in 2016. Figures for 2017 are currently being submitted, with the deadline being June 2018.

In 2017, individuals were getting an average of €1,058 a month from their rental properties, while companies bring in €9,059 a month.

The taxation system on renting property was changed in Budget 2014. Prior to this, landlords paid tax at their marginal rates on the rental income less any deductions provided for by the law, while corporates paid at the 35 per cent rate.

In an attempt to encourage more declaration in a sector where the government believed there to be considerable evasion, the Budget Measures Implementation Act, 2014 provides for a reduced flat rate of 15 per cent.

Since the measure was introduced, the government has brought in €62.48 million in tax.

The information was given by Finance Minister Edward Scicluna, in reply to a parliamentary question by MP Karol Aquilina.

Prof. Scicluna noted that the data collected did not at present distinguish between whether the property being rented was residential or commercial but added that the system was being tweaked in order to rectify this in future.