Income tax on rent, worked example, in Montenegro
April 21, 2016
|Non-resident couple´s rental income1|
|Monthly Rental Income2||1,500||6,000||12,000|
|Annual Rental Income||18,000||72,000||144,000|
|= Taxable Income||10,800||43,200||86,400|
|Income Tax 4|
|Annual Income Tax Due||972||3,888||7,776|
|Tax Due as % of Gross Income||5.40%||5.40%||5.40%|
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 EUR = 1.00 EUR
3 A standard deduction of 40% is allowed when calculating taxable income to account for income-generating expenses. Taxpayers may choose to deduct actual costs.
4 Rental income earned by nonresident individuals is taxed at a flat rate of 20%.