Income tax on rent, worked example, in Denmark
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| Non-resident couple´s joint monthly rental income1 | €1,500 | €6,000 | €12,000 | |
| Annual Rental Income2 | 18,000 | 72,000 | 144,000 | |
| Less Allowance 3 | 941 | 941 | 941 | |
| Less Expenses (40%)4 | 6,824 | 28,424 | 57,224 | |
| = Taxable Income | 10,235 | 42,635 | 85,835 | |
| Income Tax 5 | ||||
| Up to DKK 56,200 | 0% | - | - | - |
| DKK56,500 - DKK 544,800 | 8% | 215 | 2,807 | 5,254 |
| Over DKK 544,800 | 15% | - | - | 1,891 |
| Annual Income Tax Due | 215 | 2,807 | 7,145 | |
| Tax Due as % of Gross Income | 1.19% | 3.90% | 4.96% | |
1 The property is jointly owned by husband and wife.
2Exchange rate used: 1.00 EUR = 7.44 DKK
3 Taxpayers are entitled to an allowance of DKK7,000 (€937).
4 After deducting the allowance from gross income, taxpayers may deduct 40% to account for income-generating expenses.
5 Rental incoem earned by nonresident individuals are taxed at progressive rates.
INCOMTE TAX 2021 |
|
| TAXABLE INCOME, DKK (€) | TAX RATE |
| Up to DKK 56,500 (€ 7,594 ) | 0% |
| DKK56,500 - DKK 544,800 (€ 73,226 ) | 8% |
| Over DKK 544,800 (€ 73,226 ) | 15% |
