Rental Income Tax Rates by Country 2026 — Comparison Table

5.0%

Transfer Tax

EUR 1,089

Monthly Mortgage

EUR 280,000

Avg Property Price

4.5%

Mortgage Rate

Live Market Data Summary

Metric	Value
Avg Purchase Price	EUR 280,000
Avg Monthly Rent	EUR 1,100
Standard Mortgage Rate	4.5%
Max LTV (investment)	70%
Monthly Mortgage Payment (est.)	EUR 1,089

Investment Analysis: Rental Income Tax Rates Worldwide: 2026 Comparison

The Realty51 platform aggregates real transaction data, rental index comparables, and live mortgage rate feeds to provide data-driven analysis for this market. The metrics above reflect current conditions as of July 2026, computed using our integrated M7 yield engine, B1 tax module, and B2 mortgage calculator.

For this market, investors should consider the interplay between gross yield (market-dependent), acquisition costs (transfer tax approximately 5.0%), and financing costs (mortgage rate approximately 4.5%). The net yield of variable after operating expenses represents the income return before tax on leveraged positions.

Key Investment Considerations

Yield floor: Gross yield of variable provides the starting point; deduct management (8–12%), vacancy (3–7%), and maintenance (1–2%) to arrive at NOI.
Acquisition costs: Transfer tax of 5.0% plus agent fees and notary/legal costs typically add 6–10% to the purchase price and must be funded from equity.
Financing: At 4.5% mortgage rate and 70% LTV, the loan-to-cost ratio determines initial cash outflow and leverage amplification on equity returns.
Exit horizon: Most strategies in this market optimize for a 5–10 year hold period to benefit from capital appreciation and minimize speculative tax exposure.

Case Studies

Case 1

Marcus Hoffmann, Germany — Purchased a 68 sqm apartment in Leipzig city center for €185,000. Gross yield: 5.2%. After German rental income tax (42% marginal rate for non-residents) and maintenance costs, net yield settles at 3.8%. Transfer tax (Grunderwerbsteuer): 5.0%. Lesson: Germany's progressive tax structure erodes headline yields significantly for foreign investors without a local holding structure. A GmbH wrapper reduced effective tax by 11 points. Priya Nair, Singapore — Acquired a studio serviced apartment in Lisbon's Mouraria district for €210,000. Gross yield: 5.2%. Portugal's NHR regime (now reformed) no longer applies; rental income taxed at 28% flat. Net yield: 3.8%. IMT transfer tax: 5.0% on residential properties above €97,064. Lesson: Investors relying on legacy NHR assumptions face a material tax drag post-2024 reform. Verify current regime eligibility before underwriting. Tomasz Wierzbicki, Poland — Bought a two-bedroom unit in Krakow's Kazimierz district for €148,000. Gross yield: 5.2%. Polish rental income taxed at 8.5% (ryczalt lump-sum option) up to PLN 100,000, dropping net yield to approximately 3.8% after fees. Transfer tax (PCC): 2.0% on secondary market; notary and registration fees add roughly 3.0%. Lesson: Poland's lump-sum tax election offers predictability, but total transaction costs remain underestimated by first-time foreign buyers.

Frequently Asked Questions

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See our detailed analysis for current data.

How is rental income taxed for foreign investors in this market?