How much is Income Tax?

Income tax is collected by the North American federal government. Residents in the US have their total worldwide income taxed. For non-residents (non-domiciled foreigners), only the income earned in the US is audited.

If the only non-resident income in the US comes from real estate, a shortened reporting procedure may be applied. A tax of 30% is applied to such income at the lower rate of a double taxation agreement. However, the tax has to be declared and paid by the tenants. It is generally more fiscally advantageous to file a tax return and apply the costs all at once.