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|
|= Taxable Income||12,600||50,400||100,800|
|Annual Income Tax Due||1,890||7,560||15,120|
|Tax Due as % of Gross Income||10.50%||10.50%||10.50%|
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%.