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Posted on 24 February 2021

Declare rental income on the tax return in Luxembourg!

If you are the owner of a house or apartment that you rent out, the rental income is being taxed on your tax return in Luxembourg.
This is applicable to residents who rent out a property in Luxembourg or abroad, to cross-border workers who rent out a property in Luxembourg, and to cross-border workers with rented property abroad who choose to be considered as a resident taxpayer when submitting their tax return in Luxembourg.
However, as the owner of a rented property, you can also benefit from some tax advantages.

Which part of the rental income is taxed on the tax return in Luxembourg?
The rental income reduced by acquisition costs has to be declared in the tax return Luxembourg.
This income is attributed to the tax year in which it is received by the property owner. This means that rents collected for earlier or subsequent years are also included in the gross income for that tax year.

What can be deducted from the taxable rental income on the tax return in Luxembourg?
Acquisition costs are deductible from rental income and include the following:
  • Maintenance and repair costs,
  • debt interest,
  • depreciation,
  • management costs.
In addition, owners who rent out their property within the framework of social rental management in Luxembourg can benefit from a tax exemption of 50% of the rental income in their tax return.

How do you declare your rental income on the tax return in Luxembourg?
In order to be able to declare the rental income, you have to complete form 190 additionally to your tax return, by using

With the declaration of your rental income is child’s play.
By indicating in your "Tax situation" that you are renting a property to a third party, you can easily enter all the known data in the next step under "Rental income", which represents form 190. 

Our system will automatically calculate depreciation, prorate costs, and determine in which fields the different amounts must be completed in your Luxembourgish tax return.
Fill in the form 190 with, at a cost of only an additional 20€!


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