Income tax on rent, worked example, in Romania

Taxation Researcher | September 30, 2019

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 (40%)2 7,200 28,800 57,600
= Taxable Income 10,800 43,200 86,400
Income Tax Rates
Flat Rate 10% 1,080 4,320 8,640
Annual Income Tax Due 1,080 4,320 8,640
Tax Due as % of Gross Income 6.00% 6.00% 6.00%
Source:
Global Property Guide

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 EUR = 4.50 RON

3 A standard deduction of 40% of gross income is allowed to account for income-generating expenses when calculating taxable income.

4 Rental income earned by nonresident individuals is taxed at a flat rate of 10%.