|Non-resident couple´s joint monthly rental income1||€1,500||€6,000||€12,000|
|Annual Rental Income2||18,000||72,000||144,000|
|Less Expenses (30%)3||(5,400)||(21,429)||(21,429)|
|= Taxable Income||12,600||50,571||122,571|
|Income Tax 4|
|Income Tax Due||€1,890||€7,586||€15,386|
|Personal Tax Credit5||887||887||887|
|Annual Income Tax Due||1,003||6,699||17,499|
|Tax Due as % of Gross Income||5.57%||9.30%||12.15%|
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 EUR = 28.00 CZK
3 Income-generating expenses are deductible when calculating the taxable income. A standard deduction of 30% of the gross rent is available to account for income-generating expenses, with a maximum of CZK600,000 (€21,429). Landlords may opt for itemized deduction, with a maximum of CZK600,000 (€21,429).
4 Rental income earned by nonresident individuals is taxed at a flat rate of 15%.
5 Tax credit or personal allowance for 2015 is CZK24,840 (€887).
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