If you rent a house or flat that you own, the rental income that results is taxable on the Luxembourg tax return.

This applies equally to all residents with a rental property at Luxembourg or abroadThis is the case for cross-border commuters with a property rented in Luxembourg or cross-border commuters with a property rented abroad who opt to be considered as resident taxpayers when filing their tax return.

However, you can also benefit from certain tax benefits as the owner of a rented property.

To better understand what is taxed in the Luxembourg tax return:

The taxable rental income constitutes gross income, minus the costs of obtaining. This rental income is allocated to the current fiscal year of which it is paid to the owner. In practice, this means that rents received for past or future years are also included in the gross income for the current fiscal year.

What can be deducted from rental income?

The procurement costs are deductible from rental income and include the following elements:

• Maintenance and distribution costs
• Interest expenses
• Amortization
• Management fees

In addition, landlords renting out their property under social rental management can benefit from a 50% tax exemption on rental income on the tax return.

How to declare your rental income?

To do this, you must complete the form 190 in addition to your Luxembourg tax return.

The declaration of your rental income can be done with taxx.lu and it becomes child's play.

By indicating in the form "Tax status you are the owner of a building that you rent to third parties, you can enter all the data you know in the next step "Rental income in form 190.

The system of taxx.lu automatically calculates depreciation and prorates certain costs. It also determines the fields in which the various amounts are to be entered in the tax return.