Tax Example: Rent
Taxation Researcher | October 14, 2017
| NON-RESIDENT COUPLE FILING SEPARATELY (TAKING STANDARD DEDUCTIONS) | ||||
| 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 (25%)3 | (4,500) | (18,000) | (36,000) | |
| Less Personal Allowance4 | (4,710) | (4,710) | (4,710) | |
| = Taxable Income | 8,790 | 49,290 | 103,290 | |
| Income Tax5 | ||||
| Up to € 35,022.31 | 19% | 1,670 | 6,654 | 6,654 |
| Over € 35,022.31 | 25% | - | 3,567 | 17,067 |
| Annual Income Tax Due | 1,670 | 10,221 | 23,721 | |
| Tax Due as % of Gross Income | 9.28% | 14.20% | 16.47% | |
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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 June 27, 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 Rental income earned by nonresident individuals is taxed at a flat rate of 19% for income up to €35,022.31, and a flat rate of 25% for income exceeding €35,022.31.
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