Benin Rental Income Guide 2026

Overview — Rental Income Taxation

Rental income from real estate in Benin is taxed under the personal income tax (IRPP) regime. Income from both residential and commercial property rentals is included. The net taxable amount is calculated as gross rental income less the standard 40% deduction. Landlords must declare rental income in their annual tax return. Rental income is aggregated with other income for the purpose of applying the progressive IRPP brackets.

Standard Deduction — 40%

A fixed deduction of 40% of gross rental income is allowed without the need to provide actual receipts. This deduction covers all expenses related to the property including maintenance, repairs, management fees, insurance, and property taxes. Landlords may alternatively opt to deduct actual expenses if these exceed 40% of gross rental income, but this requires detailed records and receipts. The 40% deduction is the most commonly used method.

Tax Calculation Example

A landlord receives annual rental income of XOF 6,000,000. The standard deduction of 40% reduces this to XOF 3,600,000 net taxable rental income. This amount is added to the landlord's other income (salary, business income) and taxed at the progressive IRPP rates (0–40%). If the landlord's total taxable income after deductions places them in the 20% bracket, the tax on rental income would be approximately XOF 720,000.

Registration & Compliance

Landlords must register their rental properties with DGI and obtain a rental income file. Lease agreements should be registered with the tax authorities within one month of signing. Rental income must be declared annually in the IRPP return by 30 April. Late filing or under-declaration attracts penalties of 10% of the tax due, increasing to 40% for repeated non-compliance.

FAQs

Is rental income from a single property taxable?

Yes, all rental income is taxable regardless of the number of properties. Even a single rental property must be declared. The 40% standard deduction applies in all cases.

Can I deduct mortgage interest?

If you opt for actual expenses instead of the 40% standard deduction, you can deduct mortgage interest, property taxes, insurance, maintenance costs, and management fees. However, actual expenses must be substantiated with receipts.

What if my tenant is a company?

If a company rents your property, they may be required to withhold 15% tax at source on the rental payment and remit it to DGI. This withholding is credited against your final IRPP liability.

Disclaimer

This guide provides general information about Beninese rental income taxation for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Beninese tax advisor or the Direction Générale des Impôts for advice specific to your situation. InvestmentKit does not provide tax advice.