What tax advantages are there when renting out vacation apartments?
December 18, 2023 | 40,00 EUR | answered by Lorenzo Hartmann
Dear tax advisor,
my name is Isabel Peters and I own a holiday apartment that I rent out. So far, I have not dealt intensively with the tax aspects of this rental and am therefore unsure about the tax benefits available to me.
Regarding the current situation: I rent out my holiday apartment to vacation guests throughout the year. Naturally, there are ongoing costs such as maintenance, advertising, and administration. I would like to claim these costs for tax purposes, but I am unsure about how to do so.
Currently, I earn income from the rental, but also incur corresponding expenses. As a landlord, I not only have to maintain the apartment, but also regularly hire cleaning staff and possibly craftsmen. I wonder how these costs can be taken into account for tax purposes.
My concerns are that I may overlook or incorrectly declare tax benefits and therefore end up paying unnecessary taxes. Therefore, I would like to know from you what specific tax benefits are available for renting out holiday apartments and how I can make the best use of them.
My question to you is: What specific tax benefits are available to me as a landlord of holiday apartments and how can I best claim them in my tax return?
Thank you in advance for your help and advice.
Sincerely,
Isabel Peters
Dear Mrs. Peters,
Thank you for your inquiry regarding the tax aspects of renting out your holiday apartment. It is important to address these issues in order to maximize potential tax benefits and avoid unnecessary taxes.
First and foremost, it is important to know that income from renting out holiday apartments is generally considered rental income. This means that you must declare all income generated from the rental in your tax return. At the same time, you also have the opportunity to deduct various costs and expenses incurred in connection with the rental for tax purposes.
As a landlord, deductible costs may include maintenance costs, advertising expenses, management fees, cleaning costs, costs for craftsmen services, insurance, property tax, chimney sweep costs, and depreciation on the building and furnishings. All of these costs can be declared in your tax return as advertising costs or operating expenses and deducted from your income.
In addition, there are also special tax benefits that you can take advantage of as a landlord of holiday apartments. For example, you can claim depreciation on the building and furnishings in the form of depreciation allowances (AfA). This depreciation allows you to deduct the acquisition costs of the building and furnishings over a certain period for tax purposes.
Furthermore, you have the option to deduct the value-added tax on your income from renting out holiday apartments as input tax if you are subject to VAT. This can be particularly relevant if you carry out extensive renovation or modernization measures on your holiday apartment.
In order to maximize the tax benefits of renting out your holiday apartment, I recommend keeping all relevant receipts and invoices carefully and maintaining proper bookkeeping. It is also advisable to regularly stay informed about current tax regulations and laws to avoid missing out on any tax benefits.
I hope that this information has been helpful to you and I am available to answer any further questions you may have.
Sincerely,
Lorenzo Hartmann
