Income tax on rent, worked example, in Nicaragua
| Non-resident couple's joint income1 | ||||
| Monthly Rental Income2 | 1,500 | 6,000 | 12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less Expenses3 | 30 | 5,400 | 21,600 | 43,200 |
| = Taxable Income | US$12,600 | US$50,400 | US$100,800 | |
| Income Tax4 | ||||
| Flat rate | 15% | 1,890 | 7,560 | 15,120 |
| Annual Income Tax Due | 1,890 | 7,560 | 15,120 | |
| Tax Due as % of Gross Income | 10.50% | 10.50% | 10.50% | |
Thanks to: |
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DISCLAIMER: The information contained above is for illustration only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on May 10, 2016.
Notes
1 The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner).
2 Exchange rate used: 1.00 US$ = 28.50 NIO
3 A standard deduction of 30% of the gross rent is available to nonresidents earning rental income to account for income-generating expenses.
4 Nonresident individuals earning rental income are taxed at a flat rae of 15%, withheld by the tenant. Only 70% of the rental incomeearned by nonresidents is taxed.