Landlord tax expenses 2026: the full list of what can be deducted

When taxing rental income (Section 9 of the Income Tax Act), the landlord has a choice of two regimes: illustrative flat-expense method of income (simple, but often tax disadvantageous) or actual expenses (more administration, but higher savings). In this article you will find a complete list of what you can claim as real expenses and when which mode pays off.

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The applicable flat-expense method, percentage and cap under § 9 must be verified for the relevant Czech tax year; do not freeze a 30% or Kč 2,000,000 figure in this guide. Advantage: zero administration, no documents, simple calculation. Disadvantage: the result depends on your actual expenses and the method available in the relevant tax year.

Actual expenses. You will incur all costs associated with obtaining, securing and maintaining rental income. Advantage: for most landlords, actual expenses are 40-70% of income (especially with depreciation and mortgage) - tax savings 10-40% higher than a flat rate. Disadvantage: you must keep accurate records and keep documents for at least 5 years.

Key decision factor: do you have a mortgage? If so, the actual expenses almost always win out - mortgage interest is tax-deductible and is 20-35% of the rent for a typical investment mortgage. Plus depreciation of 1.5-2.5%. Plus repairs and maintenance 5-10%. Easily over 50%.

If you don't have a mortgage and your apartment is fully paid off, a illustrative flat-expense method is more advantageous - your actual expenses are typically 15-25% (depreciation, insurance, minor repairs, property tax).

Transition rule: you can switch from one regime to another once a year. When switching from a flat rate to a real one, create a detailed record from January. Remember to adjust the tax base (residual value, unclaimed depreciation) when switching the other way around.

Recommendation: Calculate both scenarios in the first year of the lease. In Grento, you will find a tax calculator that compares the flat rate vs. actual expenses for your particular situation.

What can be claimed as actual expenses - a complete list

(1) Property depreciation. Depreciation calculated under the rates and method applicable to the relevant Czech tax year and property type of the reproduction purchase price of the building. The land is NOT depreciated - you must separate the value of the land from the purchase price (usually 10-25%, more in the center of Prague). Example: apartment in a brick building, purchase price Kč 5,800,000, land value 800,000, building value 5,000,000 × 1.4% = annual depreciation Kč 70,000.

(2) Mortgage interest. Only the interest component of the repayment, not the principal. For a typical mortgage of 4 million at a rate of 4.8% = interest of approx. 190,000 Kč in the first year, gradually decreasing.

(3) Property tax. Fully readable. Typically 1,500 – 4,000 Kč per year per apartment.

(4) Real estate insurance. Insurance premiums for building insurance, liability insurance, vandalism insurance, mortgage solvency insurance. Typically 2,500 – 5,500 Kč per year.

(5) SVJ long-term repair contributions: treatment depends on the taxpayer, income category and current Czech tax rules; do not assume they are fully deductible in the year paid. Any Kč 12,000–24,000 range is only an illustrative budget.

(6) Repairs and maintenance. Minor repairs (boiler, faucet, plaster, painting), gas/electricity/chimney inspection, appliance replacement, complete apartment renovation. ATTENTION difference: corrections = immediately readable. Capital improvements and technical appreciation are depreciated or otherwise treated under the current tax rules; do not use a fixed Kč 80,000 trigger or 10–30-year period without checking the applicable category.

(7) Energy of common areas. If you pay (typically in the case of a family house), corridor electricity, boiler room gas, etc.

(8) Advertising costs. Advertising on portals (sreality.cz, bezrealitky.cz), paid promotion on Facebook, professional photography, home staging.

(9) Costs of a real estate agency. The commission for arranging the rental (typically 1 month's rent) is tax-deductible.

(10) Software and services. Subscription software for rent management (eg Grento 300 – 800 Kč/month), legal services, tax advisor, accountant.

(11) Office supplies and communication. Purchase of printer, paper, toners (proportionately according to use for rental). Phone calls with tenants and suppliers (proportionately by volume).

(12) Travel expenses. Transportation to tours, handover of the apartment, inspection visits. Either according to actual costs (fuel + wear and tear), or a flat rate of Kč 4.40/km (rate 2026 - check the current one).

(13) Education. Courses, seminars, books on real estate management, rental taxes, legal aspects. Fully enforceable.

(14) Court enforcement costs. Court fees, attorney, executor, expert opinions in disputes with tenants.

(15) Liquidation of tenant's belongings. The costs of clearing out and disposing of things that the tenant left in the apartment after leaving.

What CANNOT be deducted

Mortgage principal repayment. Only the interest component is deductible. The principal is a return of your own money, not an expense.

Costs of acquiring real estate. Purchase price, acquisition tax (cancelled 11/2020), notary fees are NOT deducted from income - they are included in the replacement purchase price for depreciation.

Own work and time. If you paint, repair, clean yourself - you cannot "charge an hourly rate". Only material and services from third parties can be billed.

Costs before the start of the rental (conditionally). If you renovate the apartment before the first rental, the costs go to technical evaluation (depreciation), not to immediate expenses. After the start of the lease, minor repairs are immediately deductible.

Expenses that you re-invoice to the tenant. Advances for services (water, heat) are a flow item for you - neither income nor expenditure. You only pay net rent.

Example of a specific calculation

Model situation: apartment in Prague 5, purchase price Kč 5,800,000 (including land 800,000, construction 5 million), mortgage 4 million at 4.8% for 25 years, gross rent 22,000 Kč/month = 264,000 Kč/year.

Illustrative annual expense example: mortgage interest, depreciation calculated under the applicable current rate, property tax, insurance, repairs, software, advertising and travel total approximately Kč 285,200; verify each item's tax treatment.

Tax base for actual expenses: 264,000 − 285,200 = −21,200 Kč. Tax LOSS Kč 21,200. Rent income tax Kč 0. The loss can be carried forward to future years or compensated with other income in § 9.

Tax base at a illustrative flat-expense method: 264,000 − 79,200 = 184,800 Kč. Tax at the applicable current rate = Kč 27,720.

Saving of actual expenses: Kč 27,720 per year against a flat rate. Plus a carried forward loss of Kč 21,200, which you can use in the future year, when the interest on the mortgage will already drop. Total 5-year savings of approx. 130,000 – 150,000 Kč.

This is a typical scenario for an investor with a mortgage in Prague. For regional apartments with lower rent, the savings may be similar in percentage, but lower in absolute numbers.

For 2026, verify the applicable flat-expense percentage, cap, tax rates and threshold with current Czech Financial Administration guidance; this example must not be treated as a fixed rule.

Practical tips for registration

Keeping a separate bank account for rent. All rental income to one account, all rental expenses (mortgage, insurance, repairs) from here. It will make it easier for you to fill out your tax return and any tax office checks.

Scan all documents immediately. Invoice, receipt, bank statement - take a photo/scan immediately upon receipt and save to the cloud. Originals on boards for 5-year archiving, but the electronic version is enough for work.

Software automates 80% of the work. Software like Grento can: match tenant payments with a specific apartment, record all expenses with categories, generate an annual overview as a basis for tax returns, export to a format for a tax advisor, archive documents and invoices electronically. The price of 300 - 800 Kč/month is tax deductible.

Tax consultant. If you have 3+ apartments or a complicated situation (foreign currency, multiple ownership, court case), pay Kč 3,000-8,000 to a tax advisor for annual filing. The investment will return in savings found and errors avoided.

Conclusion

The choice between the illustrative flat-expense method and the actual expenses is clear for most investors: if you have a mortgage, the actual expenses almost always win by 10,000-30,000 Kč per year per apartment. The key to using real expenses is systematic records - bank account for rent, instant scanning of documents, software for automation. Investing 1-2 hours a month in records returns in the form of 20,000-50,000 Kč tax savings per year. For a detailed guide to the tax return, see /pruvodci/dane-z-najemu.

> Czech-law scope and editorial note: Legal, tax, accounting, tenancy, service-charge, condominium, metrology, insurance and data-protection statements in this article refer to the Czech Republic and the rules effective for the relevant date. Figures and examples are illustrative, not legal or tax advice. Verify current rules with the relevant Czech authority or a qualified adviser.

> Czech tax clarification: Rental-tax classification, filing thresholds, rates, deductions, advances and social or health contributions depend on the actual activity, services, tax year and taxpayer. Passive rent is generally considered under § 9, while accommodation with services may fall under § 7; property count or stay length alone is not decisive. Check the current Czech Financial Administration guidance.