Income tax on rent, worked example, in Portugal
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| 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 3 | (1,000) | (3,000) | (6,000) |
| = Taxable Income | 17,000 | 60,000 | 138,000 |
| Income Tax 4 | |||
| Flat Rate 28% | 4,760 | 19,320 | 38,640 |
| Annual Income Tax Due | 4,760 | 19,320 | 38,640 |
| Tax Due as % of Gross Income | 26.44% | 26.83% | 26.83% |
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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 28%.