Global Property Guide

Financial Information for the Residential Property Buyer


Tax Example: Rent

Last Updated: October 11, 2016

Non-resident couple´s joint monthly rental income1 €1,500 €6,000 €12,000
Annual Rental Income2 18,000 72,000 144,000
Less Expenses (20%)3 (3,600) (14,400) (28,800)
= Taxable Income 14,400 57,600 115,200
Income Tax Rates4
Up to € 19,500 nil - - -
€19,500 - € 28,000 20% - 3,400 3,400
€28,000 - € 36,300 25% - 400 4,150
€36,300 - € 60,000 30% - - 12,780
Over € 60,000 35% - - -
Annual Income Tax Due - 3,800 7,500
Tax Due as % of Gross Income 0.00 5.28% 5.24%
Thanks to:
Anthony Ashiots & Co

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 December 11, 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 A standard deduction of 20% of the gross rental income is alloted for income- generating expenses.

4 Rental income earned by nonresident individuals is taxed at progressive rates.

  

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