INDIVIDUAL TAXATION

Non-residents are taxed only on their Venezuelan-sourced income. Married couples are required to file joint income tax return but the wives can opt for separate taxation on employment or professional income.

INCOME TAX (Impuesto Sobre la Renta)

Income earned by non-residents is taxed at a flat rate of 34%.

RENTAL INCOME
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% of gross income), repairs and maintenance, insurance, real estate tax, and municipal tax. Cost-of-purchase depreciation (capital allowance) is not deductible.

CAPITAL GAINS
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.