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.

Taxes on Net Monthly Rent, Compared

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* Click countries for in-depth coverage. Click headers to sort the data

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 14.70% 14.70% 14.70%
Aruba 3.11% 20.58% 36.32%
Australia 24.38% 24.38% 25.66%
Austria 24.92% 21.99% 23.31%
Bahamas 0.00% 0.00% 0.00%
Barbados 10.50% 10.50% 10.50%
Belgium 8.11% 10.19% 13.90%
Belize 3.00% 3.00% 3.00%
Bermuda 1.20% 9.60% 18.23%
Botswana 2.75% 12.88% 15.81%
Brazil 15.00% 15.00% 15.00%
BVI 7.00% 7.00% 7.00%
Bulgaria 10.00% 10.00% 10.00%
Cambodia 14.00% 14.00% 14.00%
Canada 25.00% 25.00% 25.00%
Cape Verde 20.00% 20.00% 20.00%
Cayman Is. 0.00% 0.00% 0.00%
Chile 35.00% 35.00% 35.00%
China 5.00% 5.00% 5.00%
Colombia 26.25% 26.25% 26.25%
Costa Rica 5.10% 13.92% 16.33%
Croatia 8.40% 8.40% 8.40%
Cyprus 0.00% 5.28% 5.24%
Czech Rep. 5.57% 9.30% 12.15%
Denmark 1.87% 4.07% 5.25%
Dominica 0.00% 7.73% 18.07%
Dom. Rep. 18.90% 18.90% 18.90%
Ecuador 25.00% 25.00% 25.00%
Egypt 3.75% 7.89% 8.95%
El Salvador 25.58% 26.15% 27.26%
Estonia 20.00% 20.00% 20.00%
Finland 22.50% 23.83% 24.67%
France 10.00% 8.15% 8.78%
Georgia 5.00% 5.00% 5.00%
Germany 2.71% 16.92% 23.16%
Ghana 8.00% 8.00% 8.00%
Greece 7.50% 14.31% 18.40%
Grenada 15.00% 15.00% 15.00%
Guadeloupe 10.00% 8.15% 8.78%
Guam 4.87% 6.07% 7.51%
Guatemala 18.75% 18.75% 18.75%
Honduras 11.11% 12.85% 12.85%
Hong Kong 11.40% 11.40% 11.40%
Hungary 13.50% 13.50% 13.50%
Iceland 10.00% 10.00% 10.00%
India 7.87% 17.43% 19.21%
Indonesia 20.00% 20.00% 20.00%
Ireland 10.05% 11.54% 12.73%
Israel 7.75% 7.75% 7.75%
Italy 17.25% 23.39% 27.51%
Jamaica 18.75% 18.75% 18.75%
Japan 3.40% 5.88% 5.88%
Jordan 15.00% 15.00% 15.00%
Kenya 10.00% 10.00% 10.00%
Latvia 17.25% 17.25% 17.25%
Lebanon 3.03% 5.49% 7.74%
Lithuania 1.96% 2.72% 3.08%
Luxembourg 0.00% 0.00% 0.00%
Macau 8.76% 8.94% 8.97%
Macedonia 7.50% 7.50% 7.50%
Malaysia 22.40% 22.40% 22.40%
Malta 23.33% 26.83% 27.42%
Martinique 10.00% 8.15% 8.78%
Mauritius 11.25% 11.25% 11.25%
Mexico 25.00% 25.00% 25.00%
Mongolia 10.00% 10.00% 10.00%
Montenegro 5.40% 5.40% 5.40%
Morocco 10.70% 19.36% 21.08%
Namibia 0.00% 6.66% 6.50%
Netherlands 13.42% 22.12% 26.39%
New Zealand 0.94% 10.51% 7.88%
Nicaragua 10.50% 10.50% 10.50%
Nigeria 10.00% 10.00% 10.00%
Norway 20.80% 20.85% 21.04%
Oman 2.25% 2.25% 2.25%
Pakistan 11.40% 24.58% 29.79%
Panama 2.08% 9.51% 14.13%
Paraguay 10.00% 10.00% 10.00%
Peru 30.00% 30.00% 30.00%
Philippines 4.06% 13.81% 14.31%
Poland 13.50% 20.30% 22.15%
Portugal 26.44% 26.83% 26.83%
Puerto Rico 1.75% 9.10% 16.51%
Qatar 7.50% 7.50% 7.50%
Romania 6.00% 6.00% 6.00%
Russia 20.00% 20.00% 20.00%
Saudi Arabia 0.00% 0.00% 0.00%
Senegal 15.00% 15.00% 15.00%
Serbia 15.00% 15.00% 15.00%
Seychelles 15.00% 15.00% 15.00%
Singapore 16.64% 16.64% 16.64%
Slovak Rep. 9.28% 14.09% 16.42%
Slovenia 22.50% 22.50% 22.50%
South Africa 12.80% 12.92% 16.97%
South Korea 0.00% 0.00% 0.00%
Spain 19.00% 19.00% 19.00%
Sri Lanka 14.81% 15.07% 15.11%
St Kitts and Nevis 0.00% 0.00% 0.00%
St Lucia 11.00% 18.00% 19.00%
Sweden 0.00% 1.30% 9.43%
Switzerland 48.56% 53.23% 54.48%
Taiwan 20.00% 20.00% 20.00%
Tanzania 15.00% 15.00% 15.00%
Thailand 2.73% 10.39% 14.24%
Trinidad & T. 18.75% 18.75% 18.75%
Tunisia 18.53% 21.82% 26.77%
Turkey 20.15% 29.66% 32.33%
Turks & C. Is. 0.00% 0.00% 0.00%
Uganda 19.15% 19.79% 19.89%
Ukraine 18.00% 18.00% 18.00%
UAE 5.00% 5.00% 5.00%
UK 0.00% 9.21% 11.98%
USA 30.00% 30.00% 30.00%
Uruguay 10.50% 10.50% 10.50%
US Virgin Is. 0.00% 0.67% 2.33%
Vietnam 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