Colombia: Worked Example of Tax on Rent
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Tax Example: Rent
| Non-resident couple's joint monthly rental income1 | US$1,500 | US$6,000 | US$12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less Estimated Costs2 | (2,170)3 | (8,680)4 | (17,362)5 | |
| Less Real Estate Tax6 | (713)7 | (2,850)8 | (5,700)9 | |
| = Taxable Income | 15,117 | 60,470 | 120,938 | |
| Income Tax Rates | ||||
| Income Tax Rate10 | 33% | 4,988 | 19,955 | 39,909 |
| Annual Income Tax Due | US$4,988 | US$19,955 | US$39,909 | |
| Tax Due as % of Gross Income | 27.71% | 27.72% | 27.72% | |
Thanks to: |
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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 July 18, 2007.
Notes
1 The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner).
2 These costs include the property’s insurance policy, realtor agency fees, lease and management insurance policy.
3Break down of estimated costs are as follows: property’s insurance policy (US$100), realtor agency fees (US$1,440), lease and management insurance policy (US$630).
4Break down of estimated costs are as follows: property’s insurance policy (US$400), realtor agency fees (US$5,760), lease and management insurance policy (US$2,520).
5Break down of estimated costs are as follows: property’s insurance policy (US$802), realtor agency fees (US$11,520), lease and management insurance policy (US$5,040).
6Real estate tax is levied on the cadastral value of the properties, which is estimated to be around 50% of the commercial value of the properties.
7The property is estimated to cost US$150,000.
8The property is estimated to cost US$600,000.
9The property is estimated to cost US$1,200,000.
10Rental income of non-resident foreigners is taxed at 33% for 2008.
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