Tax Example: Rent
July 24, 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 Expenses3 | 30% | 5,400 | 21,600 | 43,200 |
| = Taxable Income | 12,600 | 50,400 | 100,800 | |
| Income Tax4 | ||||
| flat rate | 27% | 3,402 | 13,608 | 27,216 |
| Annual Income Tax Due | 3,402 | 13,608 | 27,216 | |
| Tax due as % of Gross Income | 18.90% | 18.90% | 18.90% | |
| Source: Global Property Guide research |
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1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 USD = 47.00 DOP
3 Estimated values. Income-generating expenses are deductible when calculating taxable income.
4 Rental income earned by nonresident individuals is taxed at a flat rate of 27%.
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