Global Property Guide

Financial Information for Residential Property Buyers


Tax Example: Rent

Last Updated: November 03, 2016

Non-resident couple's rental income1 US$1,500 US$6,000 US$12,000
Monthly Rental Income2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
Less Expenses3 25% 4,500 18,000 36,000
= Taxable Income 13,500 54,000 108,000
Income Tax4
Flat rate 20% 2,700 10,800 21,600
Annual Income Tax Due 2,700 10,800 21,600
Tax Due as % of Gross Income 15% 15% 15%

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 2.70 ECD

3 Estimated values. Income-generating expenses are deductible when calculating taxable income. Allowable deductions include repairs, utiltiies, loan interest on the property, depreciation expenses, and other income- generating expenses.

4 Rental income earned by nonresident individuals is taxed at a flat rate of 20%.

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