Income tax on rent, worked example, in Romania
Taxation Researcher | September 30, 2019
|Non-resident couple´s joint monthly rental income1||€1,500||€6,000||€12,000|
|Annual Rental Income||18,000||72,000||144,000|
|Less Expenses (40%)2||7,200||28,800||57,600|
|= Taxable Income||10,800||43,200||86,400|
|Income Tax Rates|
|Annual Income Tax Due||1,080||4,320||8,640|
|Tax Due as % of Gross Income||6.00%||6.00%||6.00%|
Global Property Guide
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 EUR = 4.50 RON
3 A standard deduction of 40% of gross income is allowed to account for income-generating expenses when calculating taxable income.
4 Rental income earned by nonresident individuals is taxed at a flat rate of 10%.