Income tax on rent, worked example, in Chile

Taxation Researcher | January 10, 2023

Non-resident couple´s rental income1
Monthly Rental Income2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
= Taxable Income 18,000 72,000 144,000
Income Tax 4
Flat rate 35% 6,300 25,200 50,400
Annual Income Tax Due 6,300 25,200 50,400
Tax Due as % of Gross Income 35.00% 35.00% 35.00%
Source:
Global Property Guide


Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 USD = 660.00 CLP

3 Nonresident individuals earning Chilean-sourced income are subject to Additional Tax (AT) at a final withholding tax rate of 35%.
Income from leasing property is subject to First Category Tax (FCT) at a flat rate of 25.50%. FCT is credited against the taxpayer´s AT liability.