Are you planning to offer a dwelling unit for rent?
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1
Getting started
Your rental operation begins when you start offering the apartment or house for rent – including when you post an ad on a website to look for a tenant. Make an estimate of the current year’s rental income. In addition, make an estimate of the expenses of renting, including maintenance charges you pay to the housing company, interest payments on a loan, and other expenses. You can choose between reporting these amounts for the calculation of your withholding rate on the tax card and reporting them in order to pre-pay tax during the current year.
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2
Report updated facts and information to the Tax Administration
In general, we recommend that you report the rental income you receive and the expenses of renting in advance. This way, your taxes are kept up to date and you will not have to pay any back tax later. The final deadline for reporting is when you file your tax return next spring. You must give a report although it might be that your rental income is low, and after expenses you have little or no income subject to tax.
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3
You are entitled to claim deductions
They typically include housing-company charges, water bills, repairs. These expenses will lower the net amount subject to tax, so it means a lower capital-income tax for you.
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4
Termination and changes of rental activities
If changes occur part way through the year, we recommend that you give an update concerning the income and expenses, so the termination of a rental contract or other changes can be included in a revised calculation of tax prepayments or tax-card withholding. Please note that you must ask the Tax Administration to lower or to stop your prepayments. You cannot just decide to leave a prepayment unpaid because you are no longer receiving rent.