Tax Example: Rent

February 24, 2016

Non-resident couple's joint monthly rental income1      
Monthly Rental Income2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
Less Expenses3 25% 4,500 18,000 36,000
= Taxable Income 13,500 54,000 108,000
Income Tax 4
Up to € 15,000 23% 3,105 3,450 3,450
€15,000 - € 28,000 27% - 3,510 3,510
€28,000 - € 55,000 38% - 9,880 10,260
€55,000 - € 75,000 41% - - 8,200
Over € 75,000 43% - - 14,190
Annual Income Tax Due 3,105 16,840 39,610
Tax Due as % of Gross Income 17.25% 23.39% 27.51%
Thanks to:
Fahn Kanne & Co Grant Thornton

DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on February 24, 2016.

Notes


Fahn Kanne & Co Grant Thornton is a member firm of Grant Thornton International. Grant Thornton International is not a worldwide partnership. Member firms of the international organization are independently owned and operated.

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 taxed at progressive rates.

INCOME TAX

TAXABLE INCOME, € RATE
Up to € 15,000 23%
€15,000 - € 28,000 27%
€28,000 - € 55,000 38%
€55,000 - € 75,000 41%
Over € 75,000 43%
Source: Global Property Guide

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