06 Feb 2012 12:00 AM:
I am considering renting my apartment out , having owned it for a few years and always paying my annual taxes.
EU residents are allowed to deduct costs( mortgage interest, taxes,community fees etc) from the gross rent received.This is payable either when the rent is due or every 3 months.The question I have is how do I apply the deductions?
In the UK I would submit an annual return.So if I received 10 weeks rentals totalling 2000 euros during the year I would be able to deduct my expenses of 6000 euros for the year and thus make a loss and have no tax to pay.
However,do I add my expenses up for the year( 6000 euros) and then divide by 52 weeks to get 115 euros a week expenses.I would then be liable to pay tax on any rental of more than 115 euros for a week. It appears that I can only claim expenses on the weeks actually being let and the weeks it is empty would not count.
Like I said it is simple enough for an annual return,but gets confusing when the declarations have to be made every month or every 3 months.
Anyone got any advice?
Thread:
Tax on Rental-Deductions
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