Taxes on renting out an apartment or other real estate
2024-04-01
What taxes do real estate landlords have to pay?
If you decide to rent out your apartment or other real estate, do not forget that this activity is taxed, i.e., you, as the landlord, must pay taxes to the state.
If you are an individual and rent out your real estate, you can choose one of two tax payment methods: declare rental income by May 1st of the following year and pay a 15% personal income tax on actual income received, or purchase a business license and pay taxes immediately.
Real estate rental with income tax payment
If you decide to rent out real estate under a lease agreement to an individual and do not wish to purchase a business license, you will have to pay personal income tax (PIT)% on the rental income received by the end of the calendar year by May 1st of the following year. You do not need to notify the tax inspectorate when signing the lease agreement.
If you rent out property to a legal entity, it will have to deduct and pay income tax on your behalf (Article 22 of the Income Tax Law).)
By the way, you don't have to pay Sodra taxes on real estate rental income.
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