Global Property Guide

Financial Information for Residential Property Buyers


Tax Example: Rent

Last Updated: June 22, 2018

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 Withholding tax3 25% 4,500 18,000 36,000
Less Expenses4 25% 4,500 18,000 36,000
= Taxable Income 9,000 36,000 72,000
Income Tax5
Flat rate 15% 1,350 5,400 10,800
Annual Income Tax Due 1,350 5,400 10,800
Tax Due as % of Gross Income 7.50% 7.50% 7.50%

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 2.00 BBD

3 Rental income earned by nonresidents is subject to 25% withholding tax. The withholding tax is credited against the taxpayer´s final income tax liability.

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

5Rental income earned by nonresident individuals is taxed at a flat rate of 15%.

 

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