Tax Example: Rent
January 19, 2015
|Non-resident couple's joint monthly rental income1||€1,500||€6,000||€12,000|
|Annual Rental Income||18,000||72,000||144,000|
|= Taxable Income||9,000||29,340||63,180|
|Income Tax Rates|
|Tax Rate of 20% 4||1,800||5,868||12,636|
|Annual Income Tax Due||€1,800||€5,868||€12,636|
|Tax Due as % of Gross Income||10.00%||8.15%||8.78%|
1 The property is jointly owned by husband and wife. The property is assumed to be unfurnished for tax purposes (furnished properties are subject to a different taxation scheme).
2 The micro-BIC assessment can be utilized if the rental income does not exceed €32,000. This also allows offsetting 50% of the gross income as expenses and depreciation. This assessment is applied in the first case.
3 In this case, the micro-BIC assessment does not apply because the rental income exceeds €32,000. Therefore, the costs are estimated values.
4 Depreciation expenses are deductible when calculating taxable income. Estimated values.
5 The minimum income tax rate for non-residents is 20%.