Posted on 26 April 2022

Declaring rental income in the Luxembourg tax return!

If you own a house or a flat that you rent out, the resulting rental income is taxable on your Luxembourg tax return.
This applies to residents with a rental property in Luxembourg or abroad, cross-border commuters with a rental property in Luxembourg and cross-border commuters with a rental property abroad who opt to be considered as resident taxpayers when filing their tax return.
However, as an owner of a rented property, you can also benefit from certain tax advantages.

What is taxed in the Luxembourg tax return?

The taxable rental income consists of the gross income less the costs of obtaining it.

The rental income is then attributed to the tax year in which it is paid to the owner. This means that rents received for earlier or later years are also included in the gross income of the tax year in question.

What is deductible from rental income?
Obtaining costs are deductible from rental income and include the following items :
  • maintenance and repair costs, 
  • interest expenses, 
  • depreciation,
  • management fees.
In addition, landlords who rent out their property under social rental management can benefit from a tax exemption of 50% of rental income on the tax return.

How to declare rental income on the tax return in Luxembourg?

In order to declare rental income, you need to complete form 190 as a supplement to your Luxembourg tax return. What you can do with

With, declaring your rental income on your tax return is child's play.
If you indicate in the "Tax Situation" form that you own a building that you rent to third parties, you can simply enter all the data you know in the next step in the "Rental Income" form, which is form 190.

Our system automatically calculates depreciation, allocates certain costs on a pro-rata basis and determines the fields in which the various amounts are to be entered in the tax return.

Fill in Form 190 with, for an additional cost of only €20!


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