Income tax on rent, worked example, in Italy
| Non-resident couple's joint monthly rental income1 | ||||
| Monthly Rental Income2 | 1,500 | 6,000 | 12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less Expenses3 | 25% | 4,500 | 18,000 | 36,000 |
| = Taxable Income | 13,500 | 54,000 | 108,000 | |
| Income Tax 4 | ||||
| Up to € 15,000 | 23% | 3,105 | 3,450 | 3,450 |
| €15,000 - € 28,000 | 27% | - | 3,510 | 3,510 |
| €28,000 - € 55,000 | 38% | - | 9,880 | 10,260 |
| €55,000 - € 75,000 | 41% | - | - | 8,200 |
| Over € 75,000 | 43% | - | - | 14,190 |
| Annual Income Tax Due | 3,105 | 16,840 | 39,610 | |
| Tax Due as % of Gross Income | 17.25% | 23.39% | 27.51% | |
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Notes
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1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 EUR = 1.00 EUR
3 Estimated values. Income-generating expenses are deductible when calculating taxable income.
4 Rental income earned by nonresident individuals is taxed at progressive rates.
INCOME TAX |
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| TAXABLE INCOME, € | RATE | |
| Up to € 15,000 | 23% | |
| €15,000 - € 28,000 | 27% | |
| €28,000 - € 55,000 | 38% | |
| €55,000 - € 75,000 | 41% | |
| Over € 75,000 | 43% | |
| Source: Global Property Guide | ||