Income tax on rent, worked example, in Greece

Taxation Researcher | October 09, 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%