Do I have to pay tax on my rental income?

You must report all rental income to SKAT. There are different tax rules and deductions, depending on whether you own or are leasing the property. Also whether the rental period is temporary or permanent, and whether you are renting out the whole property or only a part of it.

If you are subletting you may deduct 2/3 of the annual rental income and the rest is taxed at your normal rate.

If you are renting out a home you own there are two deduction types:

  • A base untaxed amount of the current property value anything above that is taxed.
  • A deduction for accounting/administration fees.

For properties which are owned only for rental. Tax applies to self-employed persons and property rental companies.