Personal taxation · Luxembourg
Rental income tax return in Luxembourg
A landlord's tax return requires calculating net rental income from the rent and the expenses allowed for tax purposes. The firm reconciles the supporting documents, reviews the depreciation base and prepares the necessary schedules. A foreign property also requires an analysis under the tax treaty.
Financial Services Luxembourg · Licensed accountant · Head of the firm: Mickaël LOC. Editorial update: .
What is reviewed for each property
A bank statement is not enough to determine the taxable result. Income, recoverable charges, expenses borne by the owner and capital investments must be distinguished. Loan capital repayments must not be treated as deductible interest.
- Property address, ownership share and rental periods.
- Leases, rent received, charge adjustments and management statements.
- Works invoices and their classification as maintenance or investment.
- Interest certificates, financing plan and loan-related costs.
- Deed, land/building split and depreciation history.
Depreciation and works: no universal rate
The applicable regime depends in particular on the dates and characteristics of the property. The depreciable base must be documented and must separate out the land. A renovation invoice is not automatically an immediately deductible expense.
We identify the supporting documents needed before deciding on a treatment. The quote must specify the reconstruction work if prior years or the split of the purchase price are not available.
Property located abroad
The location of the property, the owner's tax residence and the tax treaty determine the treatment. Income exempt in Luxembourg may still have to be reported for rate purposes. A foreign tax return does not replace the analysis of the Luxembourg sections.
Tax preparation in the country where the property is located remains a separate service, to be confirmed. Short-term rentals or operations that include services may require an analysis going beyond a simple private rental.
What the engagement delivers
Depending on the quote, we prepare the statement for each property, the relevant schedules and their inclusion in Form 100. Filing, catching up on prior years and checking the tax assessment notice are specified separately.
The firm’s other tax engagements
Depending on your situation, the firm also handles tax, VAT and payroll, the regularisation of late tax filings and assistance during a tax audit. Fees are listed in the firm’s fee grid.
Official sources and scope
The rules apply to the year and profile concerned. Examples flagged as fictitious explain a method; they are not an individual validation. The documents and options of your file are covered by a separate engagement.