Top 10 European Countries with Low Taxes on Rental Income

Investing in real estate abroad can be particularly appealing if the country offers low taxes on rental income. Here is a list of European countries where the tax burden on rental income is among the lowest.
1. Cyprus
In Cyprus, rental income is taxed progressively, starting at 0% for lower incomes and reaching a maximum of 35% for higher amounts. However, numerous deductions are available, including depreciation and property maintenance expenses.
2. Portugal
For non-residents, Portugal applies a flat tax rate of 28% on rental income. However, through the “Golden Visa” program, new residents can significantly reduce their tax liability.
3. Malta
Malta offers a favorable 15% tax rate on rental income, provided the rental agreement is registered. This makes it a particularly attractive destination for landlords.
4. Czech Republic
In the Czech Republic, rental income is taxed at 15%. Property owners can deduct up to 30% of their income to cover expenses related to property maintenance and management.
5. Hungary
Hungary imposes a flat tax rate of 15% on rental income. Additionally, expenses for property upkeep can be deducted, reducing the taxable base.
6. Bulgaria
Bulgaria stands out with its low 10% tax rate on rental income. The country also offers affordable property maintenance costs, making it an excellent choice for investors.
7. Estonia
Estonia applies a flat 20% tax rate on rental income. However, landlords can deduct maintenance and repair expenses from the taxable income, which helps lower the overall tax burden.
8. Lithuania
In Lithuania, rental income is taxed at a rate of 15%, but property owners can benefit from several deductions, including depreciation and expenses for property improvements.
9. Greece
Greece has a progressive tax system for rental income, ranging from 15% for incomes up to €12,000 per year to 45% for higher amounts. However, significant expenses related to property maintenance can be deducted.
10. Georgia
Although Georgia is not an EU member, it attracts investors with its low 5% tax rate on rental income. Additionally, the tax administration process is highly simplified, adding to its appeal.
Countries with low taxes on rental income, such as Cyprus, Bulgaria, and Georgia, offer excellent opportunities for investors. These destinations combine moderate tax rates with favorable conditions for registering and maintaining rental properties.