The land deficit ceiling is doubled
When a landlord's property expenses (property tax, works, management costs, etc.) are higher than the rent received, he/she is in a property deficit situation. In the case of unfurnished rentals, this mechanism allows him to reduce the amount of tax to be paid on his property income (under the real tax system).
The 2023 Finance Act introduced a measure to encourage landlords to carry out energy renovation work on rented properties: since 1 January 2023, the ceiling for the land deficit deductible from overall income has risen to €21,400, compared with €10,700 previously. A lessor can therefore deduct more expenses, under certain conditions. The work must enable the property to move from an energy rating of E, F or G, according to the energy performance diagnosis (DPE), to class A, B, C or D. And this expenditure must be carried out between 1 January 2023 and 31 December 2025.
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