Income tax on rent, worked example, in Czech Republic
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| Non-resident couple´s joint monthly rental income1 | €1,500 | €6,000 | €12,000 |
| Annual Rental Income2 | 18,000 | 72,000 | 144,000 |
| Less Expenses (30%)3 | (5,400) | (21,429) | (21,429) |
| = Taxable Income | 12,600 | 50,571 | 122,571 |
| Income Tax 4 | |||
| Flat rate15% | 1,890 | 7,586 | 18,386 |
| Income Tax Due | €1,890 | €7,586 | €15,386 |
| Tax Credits | |||
| Personal Tax Credit5 | 887 | 887 | 887 |
| Annual Income Tax Due | 1,003 | 6,699 | 17,499 |
| Tax Due as % of Gross Income | 5.57% | 9.30% | 12.15% |
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1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 EUR = 28.00 CZK
3 Income-generating expenses are deductible when calculating the taxable income. A standard deduction of 30% of the gross rent is available to account for income-generating expenses, with a maximum of CZK600,000 (€21,429). Landlords may opt for itemized deduction, with a maximum of CZK600,000 (€21,429).
4 Rental income earned by nonresident individuals is taxed at a flat rate of 15%.
5 Tax credit or personal allowance for 2015 is CZK24,840 (€887).
