When comparing property investments across European countries like France, Germany, and Greece, analyzing rental yield tax from property sales and income tax from rentals is crucial for informed decision-making. Rental yield tax impacts the profitability of selling properties, while income tax from rentals directly affects ongoing rental income.
In France, rental income is subject to income tax at progressive rates, with additional social contributions. The capital gains tax on property sales depends on ownership duration, ranging from 19% to 34.5%, along with social contributions.
In Germany, rental income is taxed at progressive rates, with certain deductions allowed. Capital gains tax on property sales applies if the property is sold within ten years of acquisition, with rates ranging from 0% to 45%.
In Greece, rental income is taxed at progressive rates, with deductions available for certain expenses. Capital gains tax on property sales ranges from 15% to 45%, depending on the duration of ownership.
Analyzing these taxes helps investors understand the overall profitability and tax implications of property investments in each country. It enables them to weigh factors such as rental income potential, holding periods, and tax obligations, guiding them in making informed investment decisions tailored to their financial goals and risk tolerance.
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