Global Property Guide

Financial Information for Residential Property Buyers


Tax Example: Rent

Last Updated: March 14, 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: Expenses3 40% 7,200 28,800 57,600
Depreciation4 10% 1,800 7,200 14,400
= Taxable Income 9,000 36,000 72,000
Income Tax5
Up to € 12,000 15% 1,350 1,800 1,800
Over € 12,000 35% - 8,050 8,050
Over € 35,000 45% - 450 16,650
Annual Income Tax Due 1,350 10,300 26,500
Tax Due as % of Gross Income 7.50% 14.31% 18.40%
Thanks to:
Prooptiki Ltd.

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 EUR = 1.00 EUR

3 A standard deduction of 40% is allowed to account for income-generating expenses.

Taxpayers may choose itemized deductions instead of availing the standard deduction, but the expenses must be supported by valid invoices.

4A deduction of 10% is allowed for depreciation expense.

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

INCOME TAX ON REAL ESTATE 2017

TAXABLE INCOME, € TAX RATE
Up to € 12,000 15
€12,000 - € 35,000 35%
Over € 35,000 45%

Comments

Kim Slattery | August 13, 2017

Hello, you appear to have used an incorrect tax rate in the above calculation. For 2017, the first 12,000EUR is taxed at 15% (according to your site) and not at 10%. Please confirm.
Kim

Kim Slattery | October 23, 2017

Why hasn't anyone responded to my comment?

Kim Slattery | October 23, 2017

Please advise where rage legal source is of this standaard deduction of 40% and the 10% depreciation. It appears to be false as I have contacted an a ccountant in Crete who told me that it is not correct ...

Alon Haramati | December 26, 2017

Hey Kim, You might want to have a look at the KPMG website, "Greece - Income Tax" (link below). I agree there seems to be a mistake here on site. Hope it helps.

https://home.kpmg.com/xx/en/home/insights/2011/12/greece-income-tax.html

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