Income tax on rent, worked example, in Romania
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| 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 |
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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%.
