Taxation

Rental income tax in Europe: what landlords should know

October 10, 20266 min read

Rent is generally taxable income, but the rules depend on the property location, your tax residence and any applicable tax treaty. This guide compares four national systems; it does not cover every exemption or cross-border situation. Confirm the treatment with the relevant tax authority.

The common pattern

These examples use qualifying expense deductions, statutory allowances or conditional housing reliefs. The applicable regime determines whether costs such as property tax, maintenance, insurance, interest or depreciation can be deducted. A property being rented as housing does not make every relief available.

Four examples

Portugal: Category F normally has a 25% rate for housing and 28% for other rental income. Qualifying longer residential leases can receive reductions. Article 45-C also provides a conditional 10% rate for moderate-rent housing income in 2026–2029; this is not automatic for every contract.
Spain: eligible housing rental income can receive a reduction on the declared positive net result. The 50/60/70/90% tiers depend on the conditions and contract date; older contracts may retain the previous 60% regime.
France: unfurnished rentals are revenus fonciers. Eligible micro-foncier income up to €15,000 receives a 30% allowance; the régime réel allows qualifying actual expenses and conditional deficit relief.
Germany: landlords generally declare through Anlage V. Qualifying expenses can include loan interest and building depreciation, subject to the applicable deduction rules.

Practical takeaways

Keep property-specific invoices and check which expenses are deductible under the applicable regime.
Check the conditions of any housing relief before using it; contract duration alone may not be enough.
Check current rates, thresholds and contract-date rules before filing.

Note: this article is general information, not tax advice, and figures change. Check the current rules with your national tax authority (or an accountant) before you file.