How is the net rental income of a property in Luxembourg calculated?
Net rental income is calculated by subtracting deductible expenses from the total rent received. These expenses include, among others:
Depreciation of the property,
Repairs and maintenance performed on the property,
Financial expenses (such as loan interest),
Other expenses related to property management (insurance, property taxes, management fees, etc.).
Expenses not reimbursed by the tenant are also taken into account in the calculation.
The details of the income and expenses can be found on form 190/210. Net rental income can be positive or negative.
If the income is positive, it is subject to tax at the average tax rate applicable to your tax situation.
If the income is negative, it reduces the overall taxable income, which may lower the tax payable.
Depreciation of the property,
Repairs and maintenance performed on the property,
Financial expenses (such as loan interest),
Other expenses related to property management (insurance, property taxes, management fees, etc.).
Expenses not reimbursed by the tenant are also taken into account in the calculation.
The details of the income and expenses can be found on form 190/210. Net rental income can be positive or negative.
If the income is positive, it is subject to tax at the average tax rate applicable to your tax situation.
If the income is negative, it reduces the overall taxable income, which may lower the tax payable.
Updated on: 18/04/2025
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