Rental Income Taxation in Eritrea

Rental income from immovable property in Eritrea is subject to taxation. The rules differ slightly depending on whether the property owner is an individual or a corporation, and whether they are resident or non-resident.

Who Is Taxed on Rental Income?

Any person or entity that receives rental income from property located in Eritrea is subject to tax on that income. This includes:

Taxation of Individuals

Net Rental Income Calculation

Rental income is taxed on a net basis after deducting allowable expenses. The net rental income is included in the individual's total taxable income and taxed at progressive PIT rates (0–38%).

Allowable Deductions

Non-Deductible Expenses

Taxation of Corporations

Corporate landlords are taxed on net rental income at the standard CIT rate of 30%. Rental income is included in the company's ordinary business income.

Non-Resident Landlords

Non-residents receiving rental income from Eritrea property are subject to withholding tax on gross rental income. Non-residents may elect to be taxed on a net basis if they appoint a tax representative in Eritrea.

Filing Requirements

Record Keeping

Property owners should maintain the following records:

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