Tax Example: Rent
Taxation Researcher | October 02, 2018
| Non-resident couple´s rental income1 | ||||
| Monthly Rental Income2 | 1,500 | 6,000 | 12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less Expenses (25%)3 | 4,500 | 18,000 | 36,000 | |
| = Taxable Income | 13,500 | 54,000 | 108,000 | |
| Income Tax4 | ||||
| Up to € 30,000 | 30% | 4,050 | 9,000 | 9,000 |
| Over € 30,000 | 34% | - | 8,160 | 26,520 |
| Annual Income Tax Due | 4,050 | 16,920 | 34,740 | |
| Tax Due as % of Gross Income | 22.50% | 23.83% | 24.67% | |
Thanks to: |
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Notes
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 EUR = 1.00 EUR
3 Estimated values. Income-generating expenses are deductible when calculating taxable income.
4 Rental income earned by nonresident individuals is considered income from capital, and is taxed at progressive rates.
INCOME TAX ON CAPITOL INCOME 2015 |
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| TAXABLE INCOME, € | TAX RATE | |
| Up to € 30,000 | 30% | |
| Over € 30,000 | 34% on all income over € 30,000 | |
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