Income tax on rent, worked example, in British Virgin Is.

December 08, 2015

Non-resident couple´s joint monthly rental income1 US$1,500 US$6,000 US$12,000
Annual Rental Income 18,000 72,000 144,000
= Taxable Income US$18,000 US$72,000 US$144,000
Income Tax Rates2
No income tax on rental income - - -
Additional Taxes
Hotel Accommodation Tax3 7% 1,260 5,040 10,080
Annual Income Tax Due US$1,260 US$5,040 US$10,080
Tax Due as % of Gross Income 7.00% 7.00% 7.00%
Thanks to:
Baker Tilly (BVD Limited)
 

DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on 16 November 2015.

Notes


1 The property is jointly owned by husband and wife.

2 No income tax in the British Virgin Islands.

3 Hotel accommodation tax (7%) is levied on the gross rent charged to guests on holiday rentals. Long-term rentals to British Virgin Islands´ residents are exempt from hotel accommodation tax.

 

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