Income tax on rent, worked example, in El Salvador
This content is archived and no longer updated.
| Non-resident couple's joint rental income1 | ||||
| Monthly Rental Income2 | 1,500 | 6,000 | 12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less 13% VAT3 | 2,340 | 9,360 | 18,720 | |
| Less Expenses4 | (3,113) | (8,570) | (13,720) | |
| Less Depreciation5 | (5,000) | (22,500) | (43,114) | |
| = Taxable Income | 7,547 | 31,570 | 68,446 | |
| Income Tax Rates6 | ||||
| Flat Rate | 30% | 2,264 | 9,471 | 20,534 |
| = Annual Tax Due | 2,264 | 9,471 | 20,534 | |
| OtherTax | ||||
| VAT7 | 13% | 2,340 | 9,360 | 18,720 |
| Annual Income Tax Due | 4,604 | 18,831 | 39,254 | |
| Tax Due as % of Gross Income | 25.58% | 26.15% | 27.28% | |
Notes
Grant Thornton El Salvador is a member firm of Grant Thornton International. Grant Thornton International is not a worldwide partnership. Member firms of the international organization are independently owned and operated.
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 8.75 SVC
3 The 13% Value Added Tax (VAT) has to be deducted from the gross rental income before calculating the taxable income.
4 Estimated values.
5 Estimated values.
6 Rental income earned by nonresident individuals is subject to a flat rate of 30%.
7 Value Added Tax (VAT) is payable when leasing property. It is not applied to the income tax liability but is payable over the gross rental income.
ÂGet behind the paywall and more...
Get the data behind 80+ countries for $49 per month.
Latest Market Reports
Rental Yields
House Price Indices
Rent Price Indices
Square Meter Prices
Median Property Prices
Median Rent Prices
Mortgage Rates
Property Taxes
Quarterly Trackers
Quarterly Market Overviews