The Global Property Guide provides figures for effective income taxes, payable on gross rental earnings from residential property for nearly every country. These figures are normally based on calculations supplied by leading accountants.

The 'effective' rate is very different from the (usually higher) 'headline' rate. The 'headline rate' merely reports a series of tax bands. The 'effective rate' is an 'after deductions' figure, and is the tax actually payable on your gross earnings, expressed as a per cent of earnings.

See notes after the table for fuller explanation.

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NET MONTHLY RENT $ or €1,500 $ or €6,000 $ or €12,000
Andorra 7.50% 7.50% 7.50%
Anguilla 10.00% 10.00% 10.00%
Antigua 15.00% 15.00% 15.00%
Argentina, Buenos Aires 21.00% 21.00% 21.00%
Armenia 0.00% 0.00% 0.00%
Aruba, Bakval and Malmok et al 3.11% 20.58% 36.32%
Australia, Sydney 11.63% 0.00% 0.00%
Austria, Vienna 24.92% 19.78% 23.31%
Bahamas 0.00% 0.00% 0.00%
Bahrain, Almanamah 0.00% 0.00% 0.00%
Barbados, St James 7.50% 7.50% 7.50%
Belgium, Brussels 9.22% 12.38% 23.07%
Belize, Ambergris Caye 3.00% 3.00% 3.00%
Bermuda 1.20% 9.60% 18.23%
Botswana, Gaboron 4.20% 13.41% 16.08%
Brazil, Sao Paolo 15.00% 15.00% 15.00%
BVI, Tortola 7.00% 7.00% 7.00%
Bulgaria, Sophia 10.00% 10.00% 10.00%
Cambodia, Phnom Phen 10.00% 10.00% 10.00%
Canada, Toronto 25.00% 25.00% 25.00%
Cape Verde, Praia 20.00% 20.00% 20.00%
Cayman Is., Grand Cayman 0.00% 0.00% 0.00%
Chile, Santiago 35.00% 35.00% 35.00%
China, Shanghai 5.00% 5.00% 5.00%
Colombia, Bogota 15.47% 27.29% 27.31%
Cook Islands 0.00% 0.00% 0.00%
Costa Rica, San Jose 4.89% 13.75% 16.25%
Croatia, Zagreb 8.40% 8.40% 8.40%
Cyprus, Limassol 0.00% 5.28% 5.24%
Czech Republic, Prague 5.57% 9.30% 12.15%
Denmark, Copenhagen 1.76% 4.08% 5.38%
Dominica, Roseau 0.00% 9.01% 18.97%
Dom. Rep., Puerto Plata 18.90% 18.90% 18.90%
Ecuador, Quito 22.00% 22.00% 22.00%
Egypt, Cairo 4.04% 7.96% 8.98%
El Salvador, San Salvador 23.48% 23.96% 24.88%
Estonia, Tallinn 20.00% 20.00% 20.00%
Fiji 14.00% 14.00% 14.00%
Finland, Helsinki 22.50% 23.50% 24.13%
France, Paris 10.00% 8.15% 8.78%
Fr. Polynesia, Tahiti 0.00% 0.00% 0.00%
Georgia 15.00% 15.00% 15.00%
Germany, Berlin 15.82% 17.12% 17.56%
Ghana, Accra 15.00% 15.00% 15.00%
Greece, Athens 5.00% 12.67% 14.58%
Grenada, St. George 15.00% 15.00% 15.00%
Guadeloupe, Grande-Terre 0.00% 0.00% 0.00%
Guam, Hagatna 4.87% 6.07% 7.51%
Guatemala, Guatemala City 18.75% 18.75% 18.75%
Honduras, Tegucigalpa 11.11% 12.85% 12.85%
Hong Kong, Hong Kong Island 11.40% 11.40% 11.40%
Hungary, Budapest 12.00% 12.00% 12.00%
India, Mumbai 8.28% 23.66% 22.33%
Indonesia, Jakarta 30.00% 30.00% 30.00%
Iran, Tehrah 19.02% 23.09% 24.67%
Ireland, Dublin 10.05% 11.54% 12.81%
Israel, Tel Aviv 7.75% 7.75% 7.75%
Italy, Rome 17.25% 23.39% 27.51%
Jamaica, Kingston 18.75% 18.75% 18.75%
Japan, Tokyo 3.40% 5.88% 5.88%
Jordan, Amman 15.00% 15.00% 15.00%
Kenya, Nairobi 22.50% 22.50% 22.50%
Latvia, Riga 17.25% 17.25% 17.25%
Lebanon, Beirut 3.03% 5.49% 7.74%
Liechtenstein, Vaduz 0.00% 0.00% 0.00%
Lithuania, Vilnius 1.96% 2.72% 3.08%
Luxembourg 7.02% 10.13% 14.21%
Macau 8.76% 8.94% 8.97%
Macedonia. Skopje 4.72% 5.76% 5.76%
Malaysia, Kuala Lumpur 20.00% 20.00% 20.00%
Malta, Valleta 15.00% 15.00% 15.00%
Martinique, Fort-de-France 0.00% 0.00% 0.00%
Mauritius, Port Lewis 11.25% 11.25% 11.25%
Mexico, Mexico City 25.00% 25.00% 25.00%
Moldova, Chisinau 10.00% 10.00% 10.00%
Monaco 0.00% 0.00% 0.00%
Mongolia 20.00% 20.00% 20.00%
Montenegro, Coastal Areas 5.40% 5.40% 5.40%
Montserrat 10.00% 10.00% 10.00%
Morocco, Marrakesh 10.70% 19.36% 21.08%
Myanmar 9.09% 21.02% 23.01%
Namibia, Windhoek 0.00% 6.66% 6.50%
Nepal 25.00% 25.00% 25.00%
Netherlands, Amsterdam 15.00% 17.25% 20.00%
Neth. Antilles, Bonaire 0.00% 0.00% 0.00%
New Zealand, Auckland 0.94% 10.51% 7.88%
Nicaragua, Managua 10.50% 10.50% 10.50%
Nigeria, Lagos 10.00% 10.00% 10.00%
Norway, Oslo 27.67% 24.18% 24.46%
Oman, Muskat 2.25% 2.25% 2.25%
Pakistan 11.93% 24.72% 29.86%
Panama, Panama City 15.00% 15.00% 15.00%
Paraguay, Asuncion 15.00% 15.00% 15.00%
Peru, Lima 30.00% 30.00% 30.00%
Philippines, Metro Manila 24.09% 29.13% 32.53%
Poland, Warsaw 13.50% 15.93% 16.59%
Portugal, Lisbon 26.44% 26.83% 26.83%
Puerto Rico, San Juan 3.15% 7.00% 5.25%
Qatar, Doha 7.50% 7.50% 7.50%
Reunion Is., St. Denis 0.00% 0.00% 0.00%
Romania, Bucharest 12.00% 12.00% 12.00%
Russia, Moscow 20.00% 20.00% 20.00%
Saudi Arabia, Riyadh 0.00% 0.00% 0.00%
Senegal, Dakar 15.00% 15.00% 15.00%
Serbia 15.00% 15.00% 15.00%
Seychelles, Victoria 0.00% 0.00% 0.00%
Singapore 15.13% 15.13% 15.13%
Slovakia, Bratislava 9.28% 9.24% 4.62%
Slovenia, Ljubljana 15.00% 15.00% 15.00%
South Africa, Cape Town 12.80% 13.15% 17.18%
South Korean, Seoul 2.48% 0.00% 0.00%
Spain, Madrid 19.00% 19.00% 19.00%
Sri lanka, Colombo 11.11% 11.30% 11.33%
St. Kitts 0.00% 0.00% 0.00%
St Lucia 10.84% 17.79% 18.94%
St. Vincent 30.58% 18.06% 17.03%
Sweden, Stockholm 0.00% 2.04% 9.97%
Switzerland, Geneva 48.56% 53.23% 54.48%
Taiwan, Taipei 25.00% 25.00% 25.00%
Tanzania, Dar es Salaam 15.00% 15.00% 15.00%
Thailand, Bangkok 2.73% 10.39% 14.24%
Trinidad 18.75% 18.75% 28.75%
Tunisia, Tunis 11.58% 17.66% 20.69%
Turkey, Istanbul 22.48% 31.65% 33.32%
Turks and Caicos Is., Providenciales 0.00% 0.00% 0.00%
Uganda, Kampala 15.00% 15.00% 15.00%
Ukraine, Kiev 15.00% 15.00% 15.00%
UAE, Dubai 5.00% 5.00% 5.00%
UK, London 0.00% 9.21% 11.98%
US, New York 30.00% 30.00% 30.00%
Uruguay, Montevideo 10.50% 10.50% 10.50%
US VI, St. Croix 0.00% 0.67% 2.33%
Vanuatu, Port-Vila 8.17% 9.07% 9.22%
Venezuela, Caracas 22.16% 20.83% 23.23%
Vietnam/HCMC 20.00% 20.00% 20.00%

Notes

We compute the 'effective rate' of tax on rental income at key bands (E/US$1,5000/month, E/US$6,000/month, or E/US$12,000/month). When we make cross-continent comparisons of tax burdens, we always assume gross rental earnings of E/US$1,500/month.

We assume:

  • The property is personally directly owned jointly by husband and wife
  • Both owners are foreigners and non-residents
  • They have no other local income
  • There is no mortgage, i.e., no loan is taken for the purchase

Deductions

In arriving at the pre-tax profit figure, we calculate, and deduct:

  • Depreciation / capital allowances – if available. We assume a typical value for the apartment, based on our valuation research, and depreciate on this basis
  • Deduct any other typical costs which a landlord pays, management charges, buildings insurance, realtor agency fees, etc. Either choose a standard percentage deduction (if available) or typical 'actually incurred' costs. If real estate tax is normally payable by the landlord, we deduct that.

The result is a 'worked example':

The 'effective' income tax rates shown are in almost all instances different from the 'headline' rates. These effective rates represent what taxes are really payable, after all allowances and deductions. We believe it is more useful, easier, and more realistic to show effective rental income tax rates, instead of concentrating on headline rates.

Rental Income taxes by Region

An example of our effective income tax comparison: Europe (based on an income of €/US$1,500/month)

Corporate Route

Holding rented residential property through a company can, in some countries, reduce tax, or be the only legal way for foreigners to hold residential property. If so, we provide the relevant tax information.

Sources:

Rental income tax figures are, in every case, based on computations provided by accountants commissioned by us. Their logos appear alongside the data, on the country pages