Last Updated on October 24, 2025
The German tax return season is upon us, and with the deadline fast approaching, it’s crucial to equip yourself with the knowledge to navigate this annual obligation.
Whether you’re a resident foreigner, expatriate, non-resident property owner, or German citizen, meeting the impending deadline is crucial to avoid penalties.
Many non-resident property owners in Germany, for example, are unaware of their tax filing obligations in both their home country and Germany, as well as the potential benefits of utilizing double taxation agreements and tax deductions.
In this comprehensive guide, you will find everything you need to know about the tax return in Germany and the German tax deadline.
Who is required to file a German tax return?
Filing a tax return is mandatory only in specific situations.
For instance, self-employed workers, freelancers (Freiberufler), and tradespeople must file a German tax return if their income exceeds the exemption limits.
Non-resident landlords in Germany are obliged to file an income tax return both in their home country and in Germany.
Generally, employed individuals in tax class I, who solely earn income from employment, are not obligated to file.
However, there are exceptions. If employed individuals have applied for tax allowances (such as income tax allowance or child allowance), earn additional income, or receive wage replacement benefits, they must file.
You are also required to submit a German tax return if you have received wages from multiple employers simultaneously or earned extra income through pensions or renting/leasing.
The same applies if you are married and you or your spouse are taxed under tax class 5 or 6.
If you are a foreigner who owns property in Germany, our tax advisors can help you with your tax filing obligation. If you have questions, you can request a free call from a tax expert.
What is the tax-free threshold in Germany?
The German tax-free threshold, known as the Basic Tax-Free Allowance ($Grundfreibetrag$), has been raised since 2023.
In Germany, if you earn more than €11,784 in the tax year 2024 (or €23,568 for married couples filing jointly), you will have to pay taxes.
The actual amount of tax you pay depends on how much you earn.
What is my German Tax Class ($Steuerklasse$)?
The concept of a Tax Class ($Steuerklasse$) is primarily relevant to tax residents who receive employment income ($Lohnsteuer$) in Germany. For non-resident landlords whose only German income is from property rental, the tax class is generally not directly applicable to your rental income tax assessment.
Relevance to Non-Resident Landlords
If you are a non-resident whose only income in Germany is rental income, your tax is assessed based on your limited tax liability status, and the tax class system is typically bypassed.
However, you should be aware of tax classes if:
- You are an EU/EEA resident who applies for unlimited tax liability (to claim the basic tax-free allowance and potentially utilize tax classes).
- You are a non-resident who also has a secondary income from employment in Germany.
The Six Tax Classes
If you have German employment income, your tax class determines the rate of wage tax and social contributions automatically withheld from your salary.
| Tax Class | Applies to... | Key Feature |
|---|---|---|
| Class 1 | Single, widowed, divorced, or long-term separated individuals. | The standard default for single employees. |
| Class 2 | Single parents entitled to the single parent's allowance. | Provides a specific tax relief for single parents. |
| Class 3 | Married individuals whose spouse is in Class 5 or has no income. | Lowest deductions (highest net pay) for the higher earner. |
| Class 4 | Married individuals whose spouse is also in Class 4 (equal income). | Deductions are split equally; the default for most married couples. |
| Class 5 | Married individuals whose spouse is in Class 3. | Highest deductions (lowest net pay) for the lower earner. |
| Class 6 | Individuals with a second, third, or any additional job. | Highest tax deduction rate; no basic allowances applied. |
Deductible Rental Expenses for Non-Resident Landlords in Germany
It’s the law to report all rental income in your German tax return. The good news is that you can often deduct associated expenses.
But here’s the thing: lots of landlords in Germany end up paying more taxes on their rental income than they need to.
Why? Well, they miss out on taking advantage of all the allowable tax deductions available to them. Don’t let that happen to you!
Here are some of the rental expenses that you can claim on your German tax return:
- Utility expenses
- Costs for maintenance
- Real estate agent fees
- House renovation costs
- Financial costs
- Defects in the construction
- Appraiser expenses
- Land registry fees
- Business-related travel expenses
- Interest on debt
- Notary fees
- Ground rent
- Janitorial expenses
- Advertising fees
- Accounting fees
- Gardening and lawn mowing costs
- Demolition costs
Read more:
Rental property – What expenses are tax-deductible in Germany
How Double Taxation Agreements (DTAs) Affect Non-Residents
More than 90 countries have signed a tax agreement with Germany to prevent double taxation. As an expat living in Germany, if you have already paid income tax in another country, you can avail of this double taxation agreement.
However, a German tax return should be filed if you receive income from German sources.
Our team of tax experts is here to assist you in taking advantage of double taxation agreements.
When is the deadline to file a German tax return?
The deadlines for filing a German tax return vary depending on your tax status. If you’re required to file and do it yourself, you generally have until the end of July of the following year.
Freelancers and self-employed individuals have until 31 July of the following year to submit their German tax returns and income surplus statements.
Filing Deadlines for the German Steuererklärung
| Filing Situation | Standard Deadline (for the previous tax year) | Example for 2024 Tax Year |
|---|---|---|
| Mandatory Filing - Self-Prepared | July 31st of the following year. | July 31, 2025 |
| Mandatory Filing - With Tax Advisor | The last day of February in the second year following the tax year (or slightly later due to weekend/holiday). | April 30, 2026 (Extended deadline for 2024 tax year) |
| Voluntary Filing | December 31st of the fourth year following the tax year. | December 31, 2028 |
- Mandatory Filers: If you are legally obligated to file (e.g., if you are self-employed, have multiple sources of income, or your wages exceeded a certain amount with tax class combinations like III/V), you must meet the deadlines above.
- Using a Tax Advisor (Steuerberater): The deadline is automatically extended, giving you significantly more time.
- Late Filing: If you miss the mandatory deadline, the German tax office (Finanzamt) will impose a late-filing penalty (Verspätungszuschlag) and interest on any outstanding tax due.
- Voluntary Filers: If you are not legally required to file, you can submit a tax return voluntarily for up to four years retroactively. This is often recommended for employees, as it frequently results in a tax refund. Voluntary filers do not benefit from the extended deadline that comes with using a tax advisor.
What happens if I miss the deadline to file my German property tax return?
Failing to submit your tax returns on time can lead to some unpleasant consequences, such as late charges or penalty payments.
If you miss the deadline, you’ll be charged 0.25% of the income tax you owe, with a minimum of €25 per month.
To make matters worse, the Tax Office might also impose additional penalty payments as a form of punishment.
For the first time you fail to file your tax return on time, you could face penalties ranging from 100 to €500, and even more, if your income is high, with penalties potentially reaching up to €25,000.
It’s important to note that if you’re subject to tax assessment and still don’t file your tax return, the Tax Office will estimate your taxes and demand payment based on that estimation.
This estimated amount is usually quite high since the Tax Office won’t consider any deductible expenses you might have.
While you can appeal the estimate, you’ll still need to submit your tax return regardless.
So, it’s essential to meet the deadline and avoid these unwanted penalties and hassles.
How much does it cost to file a German tax return with a tax advisor?
Tax professionals follow the minimum fees set by the Tax Advisor Remuneration Ordinance (Steuerberatervergütungsverordnung).
However, the final bill depends on the tax advisor’s discretion. This means that different tax advisors may charge different amounts for the same work.
If you are a non-resident landlord in Germany, our tax experts can take care of your tax return liability.
Check PTI Returns’ prices here and learn more about German Property Tax.
Can I file a tax return in Germany for the past years?
If you are obligated to file a German tax return under the compulsory system, you cannot submit it at a later date.
The tax offices are quite strict with the deadlines in these cases and only provide extensions upon formal application.
Fines and penalties may be imposed if you don’t file on time.
Can I file my German tax return in English?
You can only prepare your property tax return in German, and the forms are also only available in German.
Our tax professionals can take care of all the German paperwork for you, and they will communicate with you in English.
I am a non-resident landlord. How do I file a German property tax return?
There are three primary options for submitting a German property tax return:
- You can go directly to the tax office, where you’ll need to fill out the necessary forms in German, sign them, and lodge the documents in person.
- Use the ELSTER portal, an online registration platform overseen by the Federal Tax Office.
- Get help from our tax professionals. We will deal with all the paperwork and take care of your annual tax return obligation.
Who are we?
Are you a non-resident landlord struggling with tax complexities in Germany?
Meet Property Tax International (PTI Returns), your solution.
Our tax experts specialize in annual self-assessed tax returns in Germany, alleviating your tax worries while you manage your property.
As a part of CluneTech, with over 25 years of experience in international tax, we ensure that you remain compliant with the German tax authorities.
Reasons to Choose PTI Returns:
- More cost-effective than your local accountant
- Our online one-stop-shop simplifies filing in multiple jurisdictions (your home country and Germany)
- Our expertise in international property tax allows us to determine residency status and apply for tax relief.