Global Property Guide

Financial Information for Residential Property Buyers


Tax Example: Rent

Last Updated: October 06, 2016

Non-resident couple's rental income1 US$1,500 US$6,000 US$12,000
Monthly Rental Income2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
LessExpenses3 (25%) 25% 4,500) (18,000) (36,000)
= Taxable Income 13,500 54,000 108,000
Income Tax4
Up to VUV200,000 0% - - -
Over VUV200,000 12.50% 1,470 6,533 13,283
Annual Income Tax Due 1,470 6,533 13,283
Tax Due as % of Gross Income 8.17% 9.07% 9.22%
Thanks to:
Barret and Partners

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 115.00 VUV

3 Estimated values. Costs include VAT (12.5%), municipality rates (8%), insurance (3%), repairs and maintenance (5%), and realtor's letting fees (7%).

4 Rent tax is levied at a flat rate of 12.5%.

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