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How is property income taxed in europe?

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New member
Jan 29, 2021
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Let's say I live in Hungary, have a company in Estonia and through the company own property in Germany. The question is how much tax do I need to pay on the rental income?

My understanding is 20%, because that's the dividend tax in Estonia for non-residents. If I distribute regularly, then 14%. Is this correct?
 
Company will pay real estate tax in Germany.
Company will also file Corporate tax return in Germany and pay corporate tax in Germany from all income derived by renting real estate out.
Company will have to file a tax return in Estonia. There is a double tax treaty between Germany and Estonia, so the tax paid in Germany will be used as tax credit for Estonia.
Whereas Germany has higher corporate tax rate than Estonia, you will have no tax to be payable in Estonia.
Once you will want to tranfer a dividends to yourself, you will have to pay 20 % from this amount in Estonia.
Estonia does not technicaly tax dividends. By the law, it is special form of additional corporate tax. So you will have to tax dividends in Hungary, again.

So, the setup which you plan to do, is not good.
 
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