Property deficit

The property deficit is a tax system that reduces one’s income tax by deducting property taxes from one’s property income. Specifically, if you own a rental property and you renovate or improve it, you can deduct these expenses from your property income. If expenses are higher than property income, you can deduct the surplus from your other income up to a certain amount.

For example, if you have €10,000 in annual property income and you do €15,000 of work on your rental property, you can deduct the €10,000 in property income from your expenses, and deduct the remaining €5,000 from your other income. This allows you to reduce your income tax.

However, the land deficit is subject to certain conditions. The work must be carried out on a naked rental property, and must be carried out within 12 months of the purchase of the property or the end of a previous land deficit. Deductible expenses are also limited to certain categories of work, such as improvement, repair or conversion.

In short, the property deficit is a tax system that allows one to reduce one’s income tax by deducting property taxes from one’s property income. Deductible expenses are limited to certain categories of work and the device is subject to certain conditions. If you own a rental property, a property deficit can be an attractive solution to optimize your tax bill.