Global Property Guide

Financial Information for Residential Property Buyers


Tax Example: Rent

Last Updated: July 20, 2018

Non-resident couple´s joint monthly rental income1 €1,500 €6,000 €12,000
Annual Rental Income2 18,000 72,000 144,000
Less Allowance (30%)3 941 941 941
Less Expenses (40%)4 6,824 28,424 57,224
= Taxable Income 10,235 42,635 85,835
Income Tax 5
Up to DKK 48,913 0% - - -
DKK47,826 - DKK 521,304 8% 293 2,885 5,079
Over DKK 521,304 15% - - 2,365
Annual Income Tax Due 293 2,885 7,445
Tax Due as % of Gross Income 1.63% 4.01% 5.17%

Notes


1 The property is jointly owned by husband and wife.

2Exchange rate used: 1.00 EUR = 7.44 DKK

3 Taxpayers are entitled to an allowance of DKK7,000 (€937).

4 After deducting the allowance from gross income, taxpayers may deduct 40% to account for income-generating expenses.

5 Rental incoem earned by nonresident individuals are taxed at progressive rates.

INCOMTE TAX 2015

TAXABLE INCOME, DKK (€) TAX RATE
Up to DKK 47,174 (€ 6,574 ) 0%
DKK47,174 - DKK 499,130 (€ 70,087 ) 8.08%
Over DKK 499,130 (€ 70,087 ) 15%

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