Income tax on rent, worked example, in Lithuania
| NON-RESIDENT COUPLE NOT FILING AN INCOME TAX RETURN (NO DEDUCTIONS APPLIED) | ||||
| 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 3 | 10% | 1,800 | 7,200 | 14,400 |
| Less: Depreciation 4 | (13,846) | (51,750) | (100,000) | |
| = Taxable Income | 2,354 | 13,050 | 29,600 | |
| Income Tax5 | ||||
| Flat rate | 15% | 353 | 1,958 | 4,440 |
| Annual Income Tax Due | 353 | 1,958 | 4,440 | |
| Tax Due as % of Gross Income | 1.96% | 2.72% | 3.08% | |
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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 22 March 2016.
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 Depreciation can be claimed if individual activities are declared. At eventual sale, such depreciation (capital allowance) notional deduction previously claimed annual declarations must be deducted in calculating capital gains tax (CGT) payable. Properties are depreciated for a period of 20 years.
4-1 The property is estimated to cost around €276,923.
4-2 The property is deemed to cost around €1,035,000.
4-3 The property is deemed to cost around €2,000,000.
5Rental income is taxed at a flat rate of 15%.