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Corporation Tax (“IRC”)
Non-residents companies - offshore companiesRental Income
Withholding tax will be applied if the annual rental income is superior to 10.000 Euros and if paid by a company liable to IRC (e.g. Property management companies).
Regarding lettings the following are the costs that can deducted to the gross rental income:
| Allowable to deduction*: | Not allowable for deduction: |
|---|---|
| Property Municipal Tax (“IMI”) | Gardening costs |
| Condominium charges | Utility Bills |
| Maintenance Expenses and repairs | Maid service |
| Building Insurance | Property Management Company fees |
The tax liability will be calculated as follows:
Annual Rental Income
- Annual Allowances
= Taxable Income
x 15%
= Taxable amount
- Withholding Tax
= Tax to be paid/refunded
Please note that all non-resident company (e.g. offshore) based on the black list-jurisdiction have a presumed rental income at 1/15th of the property rateable value.
