Tax on property income in Jamaica
Taxation Researcher | July 28, 2020
Effective Tax Rate on Rental Income
|Click here to see a worked example|
Global Property Guide research
Nonresidents are taxed on their Jamaican-sourced income. Married couples are generally assessed and taxed separately. However, married taxpayers may file for an Election of Joint Assessment, so that their income will be taxed jointly.
Nonresident individuals are taxed at a flat rate of 25%.
If qualified, nonresidents are also entitled to pensioner´s exemption and golden age exemption.
Rental income earned by nonresident individuals is subject to 25% withholding tax. Income-generating expenses such as land and property taxes, repairs and maintenance costs, interest payments on mortgage, and depreciation are deductible from the taxable income.
No capital gains tax is levied in Jamaica.
However, capital gains earned from selling property that are considered business income may be subject to income tax.
Stamp Duty on Transfer of Real Property
Stamp duty is levied at a flat rate of 4% on transfers of real property owned by individuals.
Real Property Tax
Real property taxes are computed on the basis of the unimproved value of the land, which is essentially the property´s market value as determined by valuations office.
REAL PROPERTY TAX
|TAX BASE, JMD (US$)||TAX RATE|
|Up to 300,000 (US$2,307)||JMD1,000 (US$8)|
|Over 300,000 (US$2,307)||0.75%|
When more than one person holds possession of taxable land, there is a joint liability for the payment of property tax.
Parochial Property Tax
Parochial property taxes are under the jurisdiction of parochial or local governments. The tax base is computed on the basis of the unimproved value of the property, which is essentially the property´s market value as determined by valuations office. Applicable tax rates vary, depending on the rulings of the local governments.
Income and capital gains earned bynon-resident companies are taxed at a flat rate of 33.33%. Income-generating expenses are deductible when calculating taxable income.