Declaring Rental Income in 2025

  • Updated

Starting from February 15, 2025, all rental income earned in 2024 must be included in your tax declaration. A 20% income tax applies to this income, with an automatic 20% tax deduction for rental income from residential properties.

What is the tax deduction?

A special deduction applies to residential rental income, reducing the effective tax rate to 16% for income earned in 2024. This deduction is valid only if:

  • The rental agreement is a residential lease agreement.
  • The landlord is a private individual.

What doesn’t need to be declared?

You don’t need to declare utility payments, maintenance fees, or other incidental costs.

Declaring rental income from platforms

If income is earned via Airbnb or Booking.com, it must be declared as rental income. This type of income is not eligible for the tax deduction, and no expenses can be deducted.

Renting via a business

If the property is rented out through a business, the tax deduction does not apply. However, profits can be reinvested back into the company tax-free, which is advantageous for long-term investments.

2024 vs. 2025: What changes?

Rental income earned in 2024 is taxed at 20%, with the tax deduction reducing the effective rate to 16%. In 2025, the tax rate will increase to 22%, but the tax deduction will remain, resulting in an effective rate of 17.6%.

Example:

  • If rental income earned in 2024 is €7200, the tax is calculated as:
    €7200 × 16% = €1152
  • If the same income is earned in 2025, the tax is:
    €7200 × 17.6% = €1267.2

👉 Important to remember! Rental income from 2024 will still be taxed at the 20% rate, even if declared in 2025.