What you will learn in this article

• Which types of rental income are subject to income tax

• Which expenses you can deduct

• How short-term rentals and Airbnb are taxed

• The most common mistakes landlords make

Expert explanation

Rental income is reported in the tax return under Section 9 of the Income Tax Act. This covers rental income from flats, houses, garages or non-residential premises, provided you are not renting as part of a business (which would be Section 7).

The landlord can claim actual expenses (e.g. repairs, insurance, mortgage interest) or lump-sum expenses of 30% of the income (max. CZK 600,000). The tax rate is 15% up to the threshold for the solidarity increase, and 23% above it.

A special chapter is short-term accommodation – typically Airbnb. The tax office often treats it as a business activity, which means different tax rules, mandatory social and health insurance contributions, and a higher risk of inspection.

Case study

A flat owner in Brno rented the property to students and, in summer, offered it short-term to tourists via Airbnb. In his tax return, he declared only the year-round rent from the students and “forgot” about the summer income. After cross-checking data from Airbnb, the tax office issued a call for additional tax, penalty, and interest. The total amount exceeded CZK 80,000.

You may be thinking…

“But if I don’t declare it, who will find out?” The tax office has access to bank transfers, data from accommodation platforms, and information from other government bodies.

Lawyer’s recommendation

If you are unsure how to correctly declare rental income, consult a professional. There are often legal ways to save money, but a wrong approach can cost you far more than the tax itself.