Comoros Rental Income Guide: PIT Rates, Deductions 2026
Rental income from property in Comoros is taxed as personal income at the progressive PIT rates (0%, 10%, 20%, 30%). Landlords can deduct expenses such as maintenance, management fees, insurance, and mortgage interest from rental income. Short-term rentals are subject to the same rules. Here is how rental income taxation works in 2026.
Rental income taxation in Comoros is governed by the General Tax Code. Unlike some countries that apply a flat withholding tax on rental income, Comoros includes rental income in the individual's total taxable income, subject to the progressive PIT brackets. This means the effective tax rate on rental income depends on the landlord's total income from all sources. The DGI requires landlords to declare rental income and pay tax accordingly. Personal income tax rates →
Real-world example: A landlord in Moroni earns KMF 600,000 per month in rental income from two apartments. Total annual rental income: KMF 7,200,000. Allowable deductions (maintenance, insurance, management): KMF 1,200,000. Net taxable rental income: KMF 6,000,000 (KMF 500,000/month). This is added to other income for PIT calculation. If this is the only income, PIT: 0% on KMF 2,400,000 = KMF 0, 10% on KMF 3,600,000 = KMF 360,000, 20% on remaining KMF 0. Effective tax rate: 6% of gross rental income. Property tax and transfer fees →
Taxation of Rental Income
- Residential rentals: Income from leasing residential property is taxed at progressive PIT rates (0-30%)
- Commercial rentals: Income from commercial and industrial property is taxed at the same PIT rates
- Short-term rentals: Income from tourism accommodation (short-term lets) is taxed under the same rules
- Corporate landlords: Companies earning rental income pay CIT at the applicable rate (15% new, 50% established)
Rental income is generally treated as passive income. However, if the landlord is substantially engaged in property management (multiple properties, active management), the activity may be classified as business income.
Allowable Deductions
Landlords can deduct the following expenses from gross rental income:
- Maintenance and repairs: Costs of keeping the property in habitable condition
- Management fees: Fees paid to property management companies
- Insurance premiums: Property insurance, liability insurance
- Mortgage interest: Interest payments on loans used to purchase or improve the rental property
- Utilities: Water, electricity, gas if paid by landlord (not passed to tenant)
- Depreciation: Buildings may be depreciated at standard rates
- Professional fees: Legal and accounting fees related to the rental activity
- Property taxes: Annual property tax and other local taxes
Deductions must be supported by proper documentation (invoices, receipts, contracts). The DGI may request evidence during tax audits.
Registration and Compliance
- Tax registration: Landlords must register as a taxpayer with the DGI if not already registered
- Rental contract: Written rental contracts are recommended and should be registered
- VAT consideration: Residential rental is generally exempt from VAT. Commercial rental may be subject to VAT (10%) if the landlord is VAT-registered
- Annual filing: Rental income must be declared in the annual personal tax return filed by May 31
Non-compliance can result in penalties and back-tax assessments. The DGI may compare declared rental income with information from utility companies and property registries.
Is there a withholding tax on rental payments?
No. Rental payments from tenants to landlords are not subject to withholding tax in Comoros. Tenants do not need to deduct or remit any tax. The landlord is responsible for declaring and paying the tax on rental income.
Can rental losses be offset against other income?
Yes. If allowable deductions exceed rental income (creating a rental loss), the loss may generally be offset against other income in the same tax year. However, anti-avoidance rules may apply to ensure the rental activity is conducted on a commercial basis.