In Finland if renting out an apartment or house to someone on a rental contract, it generates taxable income for you. You can deduct all the costs that have to do with your renting out an apartment or house. It is possible to deduct agent commissions, all mortgage interest expenses on residential investment properties, maintenance fees, repair work that is needed to maintain the current condition of a property and the repair of household equipment from the rent income. Monthly charges are the most common deductions from rental income.
The rent income left after the deductions is taxed at the percentage of income from capital. If there is no income after the deductions, no tax is paid. If the deductions are greater than the income, you have an income deficit from capital. This deficit can be noted as compensation for earned income tax. Another possibility is that the deficit is confirmed as a loss of income from capital, in which case you can deduct the amount from income on capital for the coming years. However, the deductions must be made in full during the next ten-year period of taxation.
It is also worth to know that in some cases, the basic repair work in a property can be deducted from rent income taxation. Even basic renovations can sometimes be deducted during the time of effect of the expense. The deductions must be made evenly and over the course of ten years at the most.
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