Global Property Guide

Financial Information for the Residential Property Buyer


Tax Example: Rent

Last Updated: April 07, 2017

Non-resident coupleĀ“s rental income1
Monthly Rental Income2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
Less: Expenses3 25% 4,500 18,000 36,000
= Taxable Income 13,500 54,000 108,000
Income Tax4
Up to 3,517,000 0% - - -
3,517,000 - 5,251,000 10% 323 323 323
5,251,000 - 8,760,000 15% 556 982 982
8,760,000 - 17,556,000 20% - 3,280 3,280
Over 17,556,000 25% - 5,315 5,315
Annual Income Tax Due 879 9,901 23,401
Tax Due as % of Gross Income 4.89% 13.75% 16.25%

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 December 7, 2015.

Notes


1 The residential property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 537.00 CRC

3 Estimated values. Income-generating expenses are deductible when calculating taxable income.

4Rental income earned by nonresident individuals is taxed at progressive rates.

INCOMTE TAX

TAXABLE INCOME, CRC (US$) RATE
Up to 3,517,000 (US$ 6,280 ) 0%
3,517,000 - 5,251,000 (US$ 9,377 ) 10%
5,251,000 - 8,760,000 (US$ 15,643 ) 15%
8,760,000 - 17,556,000 (US$ 31,350 ) 20%
Over 17,556,000 (US$ 31,350 ) 25%

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