Income tax on rent, worked example, in Paraguay
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| Non-resident couple´s joint monthly rental income1 | ||||
| Monthly Rental Income2 | 1,500 | 6,000 | 12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less: Expenses3 | 50% | 9,000 | 36,000 | 72,000 |
| = Taxable Income | 9,000 | 36,000 | 72,000 | |
| Income Tax4 | ||||
| Flat rate | 15% | 1,350 | 5,400 | 10,800 |
| Annual Income Tax Due | 1,350 | 5,400 | 10,800 | |
| Tax Due as % of Gross Income | 7.50% | 7.50% | 7.50% | |
| Source: Global Property Guide |
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Notes
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 5,700.00 PYG
3 Taxable income is calculated as 50% of gross income.
4 Rental income earned by nonresident individuals is taxed at a flat rate of 15%.
