Income tax on rent, worked example, in Austria
Taxation Researcher | November 11, 2016
| Non-resident couple´s joint monthly rental income1 | €1,500 | €6,000 | €12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less Annual Allowance2 | (5,143)3 | (22,041)4 | (44,082)5 | |
| Less Costs (15%)6 | (2,700) | (10,800) | (21,600) | |
| Less Real Estate Tax | (343) | (1,469) | (2,939) | |
| = Net Rental Income | 9,814 | 37,690 | 75,380 | |
| Additional Fictional Tax Base7 | 16,000 | 16,000 | 16,000 | |
| = Taxable Income | 25,814 | 53,690 | 91,380 | |
| Income Tax Rates | ||||
| Up to €10,000 | nil | - | - | - |
| €11,000 - €18,000 | 25% | 1,750 | 1,750 | 1,750 |
| €18,000 - €31,000 | 35% | 2,735 | 4,550 | 4,550 |
| €31,000 - €60,000 | 42% | - | 7,942 | 12,180 |
| €60,000 - €90,000 | 48% | - | - | 14,400 |
| €90,000 - €1,000,000 | 50% | - | - | 688 |
| Over €1,000,000 | 55% | - | - | - |
| Annual Income Tax Due | €4,485 | 14,242 | 33,568 | |
| Tax Due as % of Gross Income | 24.92% | 19.78% | 23.31% | |
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DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on October 20, 2015.
Notes
1 The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner).
2 Exchange rate used: 1.00 EUR = 1.00 EUR
3 (3) According to local laws, the annual allowance for buildings subject to rent amounts to
1.5% of the aquisision costs in the case that no evidence of the useful
life s provided. In these cases, this rule is utilized.
(3-1) Acquisition costs of the property are € 342,854
( 342,854 * 1.50% = 5,143 )
(3-2) Acquisition costs of the property are € 1,469,388
( 1,469,388 * 1.50% = 22,041 )
(3-3) Acquisition costs of the property are € 2,938,776
( 2,938,776 * 1.50% = 44,082 )
4 Income-generating expenes are deductible. In these cases, it is assumed that income-generating expenrses are around 15% of gross income.
5 The tax base of each nonresident individual is fictionally increased by €8,000. [Section 102 (3) IITA]
6 (6) Net rental income is taxed at progressive rates.
INCOME TAX 2016 |
|
| TAXABLE INCOME (€) | TAX RATE |
| Up to €11,000 | 0% |
| €11,000 - €18,000 | 25% |
| €18,000 - €31,000 | 35% |
| €31,000 - €60,000 | 42% |
| €60,000 - €90,000 | 48% |
| €90,000 - €1,000,000 | 50% |
| Over €1,000,000 | 55% |
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