Taxation of rental income: advice for property owners

Property owners are faced with numerous taxes. It is therefore important to understand how rental income taxation works and to know the tips for getting the most out of it.

What is rental income taxation?

Rental income taxation is the tax framework that applies to income generated by the rental of real estate. This income can come from rents, occupancy fees, royalties or any other type of income linked to the use of real estate.

How is rental income taxed?

Rental income is taxed in the same way as other income, that is to say according to the progressive income tax scale. Property owners can benefit from various deductions and tax credits to reduce their income tax.

What are the tips for property owners?

Calculate the amount of taxes to pay: It is important to calculate the amount of taxes to pay before making an investment decision. You can use a tax simulator to estimate the amount of taxes you owe.
Deduct rental-related expenses: Landlords can deduct rental-related expenses, such as notary fees, rental management fees, repair costs and interest on real estate loans.
Take advantage of tax credits: Property owners can benefit from tax credits to reduce their income tax. Some of these credits are for landlords who rent to students or low-income people.
Invest in real estate eligible for tax exemptions: Some real estate is eligible for tax exemptions, which can significantly reduce the amount of taxes you pay. Property owners should inquire about the conditions required to benefit from these exemptions.

The taxation of rental income can be complex and it is important to understand it well to get the most out of it. If you have any questions, do not hesitate to consult a professional or consult the My Financial Advice blog.