On July 8, 2024, the Council of State annulled a favorable tax provision for Airbnb-type rental property owners. This measure, which allowed for a tax deduction of up to 71% on rental income for 2023, has now been abolished. Going forward, the taxation of these rentals will be aligned with that of unfurnished rentals.
Changes in Tax Legislation
Previously, owners of short-term furnished rentals benefited from a 50% deduction up to €77,700 and a 71% deduction up to €188,700. The amendment reduced this deduction to 30% with an income cap of €15,000, aligning the taxation with that of unfurnished rentals.
Impact on Rental Income
This decision is not retroactive for 2023 but will impact income from 2024 onwards. Property owners will see their rental income decrease, and their profitability will lose visibility, making it difficult to predict taxes. This new tax situation presents a major challenge and significantly impacts their finances.
Recommendations for Income Protection
In light of the new tax conditions, property owners are offered modern solutions to ensure income stability. These solutions allow owners to receive income in advance and better plan their financial obligations.
The recent decision by the Council of State to annul the tax deduction for short-term rentals poses significant financial challenges for property owners. We have reviewed the key aspects of the new tax legislation and its impact on rental property owners, as well as provided recommendations for protecting income in the changed tax environment.
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