Income tax on rent, worked example, in Portugal

Taxation Researcher | July 05, 2022

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 (1,000) (3,000) (6,000)
= Taxable Income 17,000 60,000 138,000
Income Tax 4
Flat Rate 28% 4,760 19,320 38,640
Annual Income Tax Due 4,760 19,320 38,640
Tax Due as % of Gross Income 26.44% 26.83% 26.83%
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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 Rental income earned by nonresident individuals is taxed at a flat rate of 28%.