How much tax must I pay for the received rent?
For tax purposes, rental income is treated as income from investments or capital. The capital income tax rate applies.
Tax rates on capital income
| Up to EUR 30,000 | 30% |
|---|---|
| For amounts above EUR 30,000 | 34% |
The base of income tax is your net amount of rental income
Subtract the tax-deductible expenses of renting to arrive at the net amount. Typically, the expenses consist of housing-company maintenance charges, and of the outlays of money when searching for a tenant, such as advertising and your rental agent’s fee.
See complete list of deductions.
Example: You get €750 rent for your apartment every month for the entire year. Gross rental income is €9,000 a year. You can claim the housing company’s maintenance charge, which is €320 per month i.e. €3,840 per year. As a result, your net rental income is €9,000 – €3,840 = €5,160. This amount is subject to income taxation.
During the tax year, you receive no other income from investments or capital, so your capital income stays below the 30,000-euro threshold. You pay 30% tax, which means €5,160 × 0.30 = €1,548.