Venezuela: Taxes and Costs

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Income tax and CGT are high at 34% in Venezuela

Effective Tax Rate on Rental Income
Monthly Income	US$1,500	US$6,000	US$12,000
Tax Rate	22.2%	20.9%	23.2%
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INDIVIDUAL TAXATION

Earnings arising from properties located in Venezuela are subject to income tax. The regime is territorial, i.e., revenues obtained from real property located in the country are taxable, whether they are received by a resident or a nonresident taxpayer.

INCOME TAX (Impuesto Sobre la Renta)

Non-residents earning income from leasing real estate properties are taxed at 34%. The taxable income is computed by deducting actually incurred costs from the gross income. Allowable deductions are administrative expenses (maximum of 10%), repairs and maintenance, insurance, real estate tax, and municipal tax. Cost-of-purchase depreciation (capital allowance) is not deductible.

Capital Gains Tax

Capital gains earned by non-residents are taxed at a flat rate of 34%. The taxable gain is computed by deducting the costs (acquisition costs, improvement costs, and registration duties) from the gross selling price.

VALUE ADDED TAX (VAT)

Sale or transfer of ownership of real property is not subject to VAT.

FINANCIAL TRANSACTIONS TAX

Financial transaction tax is levied at 1.5%.

PROPERTY TAX

Land Registry or Real Estate Tax (Impuestos a los Inmuebles Urbanos)

This is payable to the municipality where the real estate is located. The taxpayer is the proprietor. Historically, the value of the property, its productivity or the effective income derived from it was considered as the tax base. The actual tax base applicable depends on the municipality.

Venezuela - more data and information

• Guide to buying houses and registering property sales in Venezuela

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