Income tax on rent, worked example, in Czech Republic
Taxation Researcher | December 15, 2015
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 EUR = 28.00 CZK
3 Income-generating expenses are deductible when calculating the taxable income. A standard deduction of 30% of the gross rent is available to account for income-generating expenses, with a maximum of CZK600,000 (€21,429). Landlords may opt for itemized deduction, with a maximum of CZK600,000 (€21,429).
4 Rental income earned by nonresident individuals is taxed at a flat rate of 15%.
5 Tax credit or personal allowance for 2015 is CZK24,840 (€887).