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Czech Republic: Worked Example of Tax on Rent

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Last Updated: Jan 15, 2009

Tax Example: Rent

Non-resident couple's joint monthly rental income1 €1,500 €6,000 €12,000
Annual Rental Income 18,000 72,000 144,000
Less Standard Costs (30%)2 (5,400) (21,600) (43,200)
= Taxable Income 12,600 50,400 100,800
Income Tax Rates3
Flat rate 15% 1,890 7,560 15,120
Income Tax Due   €1,890 €7,560 €15,120
Tax Credits
Personal Tax Credit4   922 922 922
Annual Income Tax Due €968 €6,638 €14,198
Tax Due as % of Gross Income 5.34% 9.22% 9.86%
Thanks to:
KPMG Česká republika, s.r.o.  BDO Tax s.r.o

DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on January 15, 2009.

Notes

1 The property is jointly owned by husband and wife. Exchange rate used: €1 = CZK26.930.

2 The 30% standard deduction is utilized in this computation but taxpayers can opt to deduct actually incurred income-generating expenses.

3 Income is taxed at a flat rate of 15%.

4 Tax credit or personal allowance for 2008 is CZK24,840 (€922).

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