vuokratulon

Vuokratulo refers to income earned from letting real estate or other assets to third parties. In Finnish taxation, vuokratulo is generally treated as capital income rather than earned income. For individuals, capital income is taxed at two rates: 30 percent on income up to a certain threshold and 34 percent on the portion that exceeds that threshold. The threshold is set by the tax authorities and can change from year to year.

Sources and deductions: Taxpayers may deduct ordinary and necessary expenses that are incurred to produce the rental income. Typical deductible items include maintenance and repairs, property management or administration fees, insurance, and interest on loans used to acquire or improve the rental property. Depreciation may be permitted for some assets or under specific conditions; rules vary, so taxpayers should consult the latest guidelines from the Finnish Tax Administration.

Reporting: Rental income and related deductions are reported in the annual tax return. If rental activity is conducted in a business-like manner or exceeds certain limits, it can be classified as business income, which alters its tax treatment and reporting requirements. In many cases, smaller-scale residential rentals remain governed by capital-income rules.

Context: Vuokratulo plays a significant role in individual investment strategies and the housing market. Changes in tax policy, depreciation rules, or housing supply can affect rental prices, profitability, and decision-making for property owners.

See also: Finnish Tax Administration, taxation of rental income, real estate taxation, property ownership.