Non-resident couple's joint monthly rental income1		€1,500	€6,000	€12,000
Annual Rental Income		18,000	72,000	144,000
Less Annual Allowance2		(5,143)3	(22,041)4	(44,082)5
Less Costs (15%)6		(2,700)	(10,800)	(21,600)
Less Real Estate Tax		(343)	(1,469)	(2,939)
= Net Rental Income		9,814	37,690	75,380
Additional Fictional Tax Base7		16,000	16,000	16,000
= Taxable Income		25,814	53,690	91,380
Income Tax Rates
Up to €10,000	nil	-	-	-
€11,000 - €18,000	25%	1,750	1,750	1,750
€18,000 - €31,000	35%	2,735	4,550	4,550
€31,000 - €60,000	42%	-	7,942	12,180
€60,000 - €90,000	48%	-	-	14,400
€90,000 - €1,000,000	50%	-	-	688
Over €1,000,000	55%	-	-	-
Annual Income Tax Due		€4,485	14,242	33,568
Tax Due as % of Gross Income		24.92%	19.78%	23.31%
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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 October 20, 2015.

Notes

¹ The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner).

² Exchange rate used: 1.00 EUR = 1.00 EUR

³ (3) According to local laws, the annual allowance for buildings subject to rent amounts to 1.5% of the aquisision costs in the case that no evidence of the useful life s provided. In these cases, this rule is utilized.
(3-1) Acquisition costs of the property are € 342,854 ( 342,854 * 1.50% = 5,143 )
(3-2) Acquisition costs of the property are € 1,469,388 ( 1,469,388 * 1.50% = 22,041 )
(3-3) Acquisition costs of the property are € 2,938,776 ( 2,938,776 * 1.50% = 44,082 )

⁴ Income-generating expenes are deductible. In these cases, it is assumed that income-generating expenrses are around 15% of gross income.

⁵ The tax base of each nonresident individual is fictionally increased by €8,000. [Section 102 (3) IITA]

⁶ (6) Net rental income is taxed at progressive rates.