The Global Property Guide provides figures for effective income taxes, payable on gross rental earnings from residential property for nearly every country. These figures are normally based on calculations supplied by leading accountants.
The 'effective' rate is very different from the (usually higher) 'headline' rate. The 'headline rate' merely reports a series of tax bands. The 'effective rate' is an 'after deductions' figure, and is the tax actually payable on your gross earnings, expressed as a per cent of earnings.
See notes after the table for fuller explanation.
Net Monthly Rent Compared
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| NET MONTHLY RENT | 1,500 $ or € |
6,000 $ or € |
12,000 $ or € |
|---|---|---|---|
| Andorra | 7.50% | 7.50% | 7.50% |
| Anguilla | 10.00% | 10.00% | 10.00% |
| Antigua | 15.00% | 15.00% | 15.00% |
| Argentina, Buenos Aires | 14.70% | 14.70% | 14.70% |
| Armenia | 0.00% | 0.00% | 0.00% |
| Aruba, Bakval and Malmok et al | 3.11% | 20.58% | 36.32% |
| Australia, Sydney | 24.38% | 24.38% | 25.66% |
| Austria, Vienna | 24.92% | 19.78% | 23.31% |
| Bahamas | 0.00% | 0.00% | 0.00% |
| Bahrain, Almanamah | 0.00% | 0.00% | 0.00% |
| Barbados, St James | 7.50% | 7.50% | 7.50% |
| Belgium, Brussels | 8.11% | 10.19% | 14.13% |
| Belize, Ambergris Caye | 3.00% | 3.00% | 3.00% |
| Bermuda | 1.20% | 9.60% | 18.23% |
| Botswana, Gaboron | 2.75% | 12.88% | 15.81% |
| Brazil, Sao Paolo | 15.00% | 15.00% | 15.00% |
| BVI, Tortola | 7.00% | 7.00% | 7.00% |
| Bulgaria, Sophia | 10.00% | 10.00% | 10.00% |
| Cambodia, Phnom Phen | 14.00% | 14.00% | 14.00% |
| Canada, Toronto | 25.00% | 25.00% | 25.00% |
| Cape Verde, Praia | 20.00% | 20.00% | 20.00% |
| Cayman Is., Grand Cayman | 0.00% | 0.00% | 0.00% |
| Chile, Santiago | 35.00% | 35.00% | 35.00% |
| China, Shanghai | 5.00% | 5.00% | 5.00% |
| Colombia, Bogota | 24.75% | 24.75% | 24.75% |
| Cook Islands | 0.00% | 0.00% | 0.00% |
| Costa Rica, San Jose | 5.16% | 13.96% | 16.36% |
| Croatia, Zagreb | 8.40% | 8.40% | 8.40% |
| Cyprus, Limassol | 0.00% | 5.28% | 5.24% |
| Czech Republic, Prague | 5.57% | 9.30% | 12.15% |
| Denmark, Copenhagen | 1.71% | 4.06% | 5.30% |
| Dominica, Roseau | 0.00% | 9.01% | 18.97% |
| Dom. Rep., Puerto Plata | 18.90% | 18.90% | 18.90% |
| Ecuador, Quito | 22.00% | 22.00% | 22.00% |
| Egypt, Cairo | 3.79% | 7.89% | 8.95% |
| El Salvador, San Salvador | 25.58% | 26.15% | 27.26% |
| Estonia, Tallinn | 20.00% | 20.00% | 20.00% |
| Fiji | 14.00% | 14.00% | 14.00% |
| Finland, Helsinki | 22.50% | 23.83% | 24.67% |
| France, Paris | 10.00% | 8.15% | 8.78% |
| Fr. Polynesia, Tahiti | 0.00% | 0.00% | 0.00% |
| Georgia | 5.00% | 5.00% | 5.00% |
| Germany, Berlin | 2.71% | 16.92% | 23.16% |
| Ghana, Accra | 8.00% | 8.00% | 8.00% |
| Greece, Athens | 7.50% | 14.31% | 18.40% |
| Grenada, St. George | 15.00% | 15.00% | 15.00% |
| Guadeloupe, Grande-Terre | 10.00% | 8.15% | 8.78% |
| Guam, Hagatna | 4.87% | 6.07% | 7.51% |
| Guatemala, Guatemala City | 18.75% | 18.75% | 18.75% |
| Honduras, Tegucigalpa | 11.11% | 12.85% | 12.85% |
| Hong Kong, Hong Kong Island | 11.40% | 11.40% | 11.40% |
| Hungary, Budapest | 13.50% | 13.50% | 13.50% |
| India, Mumbai | 7.87% | 17.43% | 19.21% |
| Indonesia, Jakarta | 20.00% | 20.00% | 20.00% |
| Iran, Tehrah | 19.25% | 23.30% | 23.78% |
| Ireland, Dublin | 10.05% | 11.54% | 12.73% |
| Israel, Tel Aviv | 7.75% | 7.75% | 7.75% |
| Italy, Rome | 17.25% | 23.39% | 27.51% |
| Jamaica, Kingston | 18.75% | 18.75% | 18.75% |
| Japan, Tokyo | 3.40% | 5.88% | 5.88% |
| Jordan, Amman | 15.00% | 15.00% | 15.00% |
| Kenya, Nairobi | 10.00% | 10.00% | 10.00% |
| Latvia, Riga | 17.25% | 17.25% | 17.25% |
| Lebanon, Beirut | 3.03% | 5.49% | 7.74% |
| Liechtenstein, Vaduz | 0.00% | 0.00% | 0.00% |
| Lithuania, Vilnius | 1.96% | 2.72% | 3.08% |
| Luxembourg | 0.00% | 0.00% | 0.00% |
| Macau | 8.76% | 8.94% | 8.97% |
| Macedonia. Skopje | 7.50% | 7.50% | 7.50% |
| Malaysia, Kuala Lumpur | 22.40% | 22.40% | 22.40% |
| Malta, Valleta | 23.33% | 26.83% | 27.42% |
| Martinique, Fort-de-France | 10.00% | 8.15% | 8.78% |
| Mauritius, Port Lewis | 11.25% | 11.25% | 11.25% |
| Mexico, Mexico City | 25.00% | 25.00% | 25.00% |
| Moldova, Chisinau | 10.00% | 10.00% | 10.00% |
| Monaco | 1.00% | 1.00% | 1.00% |
| Mongolia | 10.00% | 10.00% | 10.00% |
| Montenegro, Coastal Areas | 5.40% | 5.40% | 5.40% |
| Montserrat | 10.00% | 10.00% | 10.00% |
| Morocco, Marrakesh | 10.70% | 19.36% | 21.08% |
| Myanmar | 7.50% | 7.50% | 7.50% |
| Namibia, Windhoek | 0.00% | 6.66% | 6.50% |
| Nepal | 25.00% | 25.00% | 25.00% |
| Netherlands, Amsterdam | 13.42% | 22.12% | 26.39% |
| Neth. Antilles, Bonaire | 0.00% | 0.00% | 0.00% |
| New Zealand, Auckland | 0.94% | 10.51% | 7.88% |
| Nicaragua, Managua | 10.50% | 10.50% | 10.50% |
| Nigeria, Lagos | 10.00% | 10.00% | 10.00% |
| Norway, Oslo | 20.80% | 20.85% | 21.04% |
| Oman, Muskat | 2.25% | 2.25% | 2.25% |
| Pakistan | 11.40% | 24.58% | 29.79% |
| Panama, Panama City | 2.08% | 9.51% | 14.13% |
| Paraguay, Asuncion | 10.00% | 10.00% | 10.00% |
| Peru, Lima | 30.00% | 30.00% | 30.00% |
| Philippines, Metro Manila | 4.06% | 13.81% | 14.31% |
| Poland, Warsaw | 13.50% | 20.29% | 22.15% |
| Portugal, Lisbon | 26.44% | 26.83% | 26.83% |
| Puerto Rico, San Juan | 1.75% | 9.10% | 16.51% |
| Qatar, Doha | 7.50% | 7.50% | 7.50% |
| Reunion Is., St. Denis | 10.00% | 8.15% | 8.78% |
| Romania, Bucharest | 9.60% | 9.60% | 9.60% |
| Russia, Moscow | 20.00% | 20.00% | 20.00% |
| Saudi Arabia, Riyadh | 0.00% | 0.00% | 0.00% |
| Senegal, Dakar | 15.00% | 15.00% | 15.00% |
| Serbia | 15.00% | 15.00% | 15.00% |
| Seychelles, Victoria | 15.00% | 15.00% | 15.00% |
| Singapore | 15.13% | 15.13% | 15.13% |
| Slovakia, Bratislava | 9.28% | 13.01% | 13.63% |
| Slovenia, Ljubljana | 22.50% | 22.50% | 22.50% |
| South Africa, Cape Town | 12.80% | 13.15% | 17.18% |
| South Korean, Seoul | 0.00% | 0.00% | 0.00% |
| Spain, Madrid | 19.00% | 19.00% | 19.00% |
| Sri lanka, Colombo | 14.81% | 15.07% | 15.11% |
| St. Kitts | 0.00% | 0.00% | 0.00% |
| St Lucia | 11.00% | 18.00% | 19.00% |
| St. Vincent | 30.58% | 18.06% | 17.03% |
| Sweden, Stockholm | 0.00% | 2.04% | 9.97% |
| Switzerland, Geneva | 48.56% | 53.23% | 54.48% |
| Taiwan, Taipei | 25.00% | 25.00% | 25.00% |
| Tanzania, Dar es Salaam | 15.00% | 15.00% | 15.00% |
| Thailand, Bangkok | 2.73% | 10.39% | 14.24% |
| Trinidad | 18.75% | 18.75% | 18.75% |
| Tunisia, Tunis | 12.00% | 18.00% | 21.00% |
| Turkey, Istanbul | 21.94% | 31.18% | 33.09% |
| Turks and Caicos Is., Providenciales | 0.00% | 0.00% | 0.00% |
| Uganda, Kampala | 19.14% | 19.78% | 19.89% |
| Ukraine, Kiev | 18.00% | 18.00% | 18.00% |
| UAE, Dubai | 5.00% | 5.00% | 5.00% |
| UK, London | 0.00% | 9.21% | 11.98% |
| US, New York | 30.00% | 30.00% | 30.00% |
| Uruguay, Montevideo | 10.50% | 10.50% | 10.50% |
| US VI, St. Croix | 0.00% | 0.67% | 2.33% |
| Vanuatu, Port-Vila | 8.17% | 9.07% | 9.22% |
| Venezuela, Caracas | 22.16% | 20.83% | 23.23% |
| Vietnam/HCMC | 20.00% | 20.00% | 20.00% |
Notes
We compute the 'effective rate' of tax on rental income at key bands (E/US$1,5000/month, E/US$6,000/month, or E/US$12,000/month). When we make cross-continent comparisons of tax burdens, we always assume gross rental earnings of E/US$1,500/month.
We assume:
- The property is personally directly owned jointly by husband and wife
- Both owners are foreigners and non-residents
- They have no other local income
- There is no mortgage, i.e., no loan is taken for the purchase
Deductions
In arriving at the pre-tax profit figure, we calculate, and deduct:
- Depreciation / capital allowances – if available. We assume a typical value for the apartment, based on our valuation research, and depreciate on this basis
- Deduct any other typical costs which a landlord pays, management charges, buildings insurance, realtor agency fees, etc. Either choose a standard percentage deduction (if available) or typical 'actually incurred' costs. If real estate tax is normally payable by the landlord, we deduct that.
The result is a 'worked example':
The 'effective' income tax rates shown are in almost all instances different from the 'headline' rates. These effective rates represent what taxes are really payable, after all allowances and deductions. We believe it is more useful, easier, and more realistic to show effective rental income tax rates, instead of concentrating on headline rates.
Rental Income taxes by Region
An example of our effective income tax comparison: Europe (based on an income of €/US$1,500/month)
Corporate Route
Holding rented residential property through a company can, in some countries, reduce tax, or be the only legal way for foreigners to hold residential property. If so, we provide the relevant tax information.
Sources:
Rental income tax figures are, in every case, based on computations provided by accountants commissioned by us. Their logos appear alongside the data, on the country pages