Income tax on rent, worked example, in Barbados

May 24, 2019

Non-resident couple´s rental 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 12,600 50,400 100,800
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%

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 2.00 BBD

3 Estimated values. Income-generating expenses are deductible when calculating taxable income.

4Rental income earned by nonresident individuals is taxed at a flat rate of 15%.

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