Tax Example: Rent
Last Updated: January 19, 2015
| Non-resident couple´s joint monthly rental income1 | €1,500 | €6,000 | €12,000 |
| Annual Rental Income | 18,000 | 72,000 | 144,000 |
| Less: Costs | (9,000)2 | (10,260)3 | (16,020)3 |
| Less: Depreciation4 | (32,400) | (64,800) | |
| = Taxable Income | 9,000 | 29,340 | 63,180 |
| Income Tax Rates | |||
| Tax Rate of 20% 4 | 1,800 | 5,868 | 12,636 |
| Annual Income Tax Due | €1,800 | €5,868 | €12,636 |
| Tax Due as % of Gross Income | 10.00% | 8.15% | 8.78% |
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Notes
1 The property is jointly owned by husband and wife. The property is assumed to be unfurnished for tax purposes (furnished properties are subject to a different taxation scheme).
2 The micro-BIC assessment can be utilized if the rental income does not exceed €32,000. This also allows offsetting 50% of the gross income as expenses and depreciation. This assessment is applied in the first case.
3 In this case, the micro-BIC assessment does not apply because the rental income exceeds €32,000. Therefore, the costs are estimated values.
4 Depreciation expenses are deductible when calculating taxable income. Estimated values.
5 The minimum income tax rate for non-residents is 20%.
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