Income tax on rent, worked example, in Chile
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| 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 | 18,00 | 72,000 | 144,000 | |
| Income Tax 4 | ||||
| Flat rate | 35% | 6,300 | 25,200 | 50,400 |
| Annual Income Tax Due | 6,300 | 25,200 | 50,400 | |
| Tax Due as % of Gross Income | 35.00% | 35.00% | 35.00% | |
| Source: Global Property Guide |
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Notes
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 USD = 660.00 CLP
3 Nonresident individuals earning Chilean-sourced income are subject to Additional Tax
(AT) at a final withholding tax rate of 35%.
Income from leasing property is subject to First Category Tax (FCT) at a
flat rate of 25.50%. FCT is credited against the taxpayer´s AT liability.
