Tax Deductible Expenses for Property Repairs, Maintenance, and Improvement

Expenses for repairs, maintenance and improvement of the property

Expenses related to repairs, maintenance and improvement of a rental property are generally deductible for the tax authorities. With this option, you both increase the value of your property, while benefiting from a tax reduction.

Expenses on behalf of the tenant, but at the expense of the owner

Certain expenses incurred on behalf of your tenants may also be deducted. This normalization takes place at the end of the year in which the tenant leaves. If the latter has not reimbursed certain expenses that you have borne on his behalf, you have the possibility of deducting them from your property income.

Provisions for co-ownership charges

Owners of condominiums also benefit from advantageous tax deductions. Each lessor owner can, in fact, deduct from his property income all the provisions for charges paid the previous year.

Management fees

Some rental unit management fees provide landlords with the ability to benefit from significant tax advantages. Among the expenses concerned are:

• Remuneration of guards, janitors and employees of the condominium.
• Procedural costs related to the resolution of disputes (bailiff’s fees, etc.).
• Purchases of standard rental contract models, correspondence and telephone costs (via a standard flat rate of €20 per year and per accommodation).

Insurance premiums

Insurance premiums related to rented accommodation are 100% deductible. This deduction covers both the Unpaid Rent Guarantee (GLI) and the Non-Occupant Owner’s Insurance (PNO). Insuring your assets against risks therefore allows you to protect your investment and at the same time benefit from attractive tax reductions.

Tax deductible taxes and contributions

Certain taxes and contributions are also tax deductible, such as:

• The property tax.
• The tax on parking spaces
• The special equipment tax.
• The contribution on rental income (when applicable).

Loan interest

Certain loan interest incurred may also be deductible. To be eligible, they must relate to the acquisition, construction, repair, improvement or conservation of the rented accommodation. Deductions relate to interest, but not only. The costs related to the loan, such as those related to the constitution of file, are also concerned. It is a solution that keeps the housing in good condition for the tenants, without suffering the financial pressure.