Global Property Guide

Financial Information for the Residential Property Buyer


Tax Example: Rent

Last Updated: October 28, 2016

Non-resident coupleĀ“s rental income1      
Monthly Rental Income2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
Less Expenses 3 25% 4,500 18,000 36,000
= Taxable Income 13,500 54,000 108,000
Income Tax4
Flat rate 10% 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%
Thanks to:

Notes


1 The property is jointly owned by husband and wife.

2 (2) Exchange rate used: 1 EUR = 1.00 EUR

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 10%.

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