Global Property Guide

Financial Information for Residential Property Buyers


Tax Example: Rent

April 05, 2016

Non-resident couple's joint monthly rental income1 €1,500 €6,000 €12,000
Annual Rental Income 18,000 72,000 144,000
Less Expenses (20%)2 3,600 14,400 28,800
= Taxable Income €14,400 €57,600 €115,200
Income Tax
Up to € 700 nil - - -
€700 - € 3,100 20% 480 480 480
€3,100 - € 7,800 30% 1,410 1,410 1,410
Over € 7,800 35% 2,310 17,430 37,590
Annual Income Tax Due €,4200 €19,320 €39,480
Tax Due as % of Gross Income 23.33% 26.83% 27.42%
Thanks to:


Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 EUR = 1.00 EUR

3 The 20% maintenance allowance is levied on the net rental income (annual rental income less ground rents, if any). In these cases, tehre is an assumption that no ground rents are payable from these properties.

4 Rental income earned by nonresident individuals is generally taxed at progressive rates.

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