Bolivia Rental Income Guide 2026

Overview — Rental Income Tax in Bolivia

Rental income from letting or leasing of immovable property (land and buildings) is chargeable to income tax in Bolivia. The tax treatment depends on the type of landlord. For individuals letting residential or commercial property, rental income is subject to RC-IVA at 13% on net rental income after allowable deductions. For companies and professional landlords, rental income is included in IUE taxable income at 25%. The tenant (or property manager) is responsible for withholding the tax from the rent payment and remitting it to SIN within 15 days. Landlords should ensure tenants provide withholding tax certificates as evidence of tax paid.

Individual Landlords — RC-IVA 13%

For individuals letting property, rental income is taxed under the RC-IVA at a flat 13% rate. The tax is calculated on the net rental income after allowable deductions. The tenant withholds 13% of the gross rent and remits it to SIN. The landlord may then file an annual return to claim deductions and potentially reduce the effective tax rate. Deductible expenses include municipal property tax (IPBI), maintenance and repairs, insurance premiums, property management fees, mortgage interest, and depreciation. If the landlord's total expenses exceed the rental income, a loss may be carried forward to offset future rental income.

Corporate Landlords — IUE 25%

Companies receiving rental income include it in their IUE taxable income at 25%. The company may deduct all allowable business expenses including property costs, management fees, and depreciation. The 12.5% withholding tax deducted by the tenant is creditable against the company's IUE liability. Excess withholding tax may be carried forward or refunded. Corporate landlords typically prefer to be taxed under IUE rather than RC-IVA because of the wider range of deductible expenses available under the corporate regime.

Allowable Deductions for Rental Income

Both individual and corporate landlords may deduct the following expenses against rental income:

• Municipal property tax (IPBI) — annual tax paid to the municipality
• Repairs & maintenance — not capital improvements
• Property management fees — paid to licensed agents
• Insurance premiums — building and fire insurance
• Mortgage interest — interest on loans used to acquire or improve the property
• Depreciation — 2% per annum on building value (straight-line)
• Legal & professional fees — for lease agreements and tenant matters

To claim deductions, the landlord must maintain proper records and file an annual tax return with SIN. Capital improvements (extensions, major renovations) are not deductible but may be added to the cost basis for capital gains purposes.

Short-Term Rentals & Airbnb

Short-term letting (Airbnb, holiday rentals, temporary accommodation) is subject to rental income tax in Bolivia. The same rules apply: 13% RC-IVA for individuals, 25% IUE for companies. Platforms like Airbnb may be required to report income to SIN under tax information exchange agreements. Landlords operating multiple short-term rental properties may be treated as a business for tax purposes and required to register under the IUE regime. Tourist accommodation may also require a municipal operating licence and registration with the Vice Ministry of Tourism.

FAQs

Who is responsible for withholding rental tax?

The tenant (lessee) is responsible for withholding 13% from the rent payment and remitting it to SIN within 15 days. If the tenant fails to withhold, the landlord remains liable for the tax. Property agents acting on behalf of tenants also have withholding obligations.

What if I rent my property through an agency?

The agency may be designated as the withholding agent. The agency must deduct the 13% WHT before remitting net proceeds to the landlord and issue a withholding tax certificate.

Are advance rent payments taxable in one year?

Yes, rental income is taxable in the year it is received, regardless of the period it covers. If you receive 2 years' rent in a single payment, the full amount is subject to tax in that year.

Disclaimer

This guide provides general information about Bolivian rental income tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Bolivian tax advisor or the Servicio de Impuestos Nacionales for advice specific to your situation. InvestmentKit does not provide tax advice.