Rental Income Tax in Germany
File Tax Return in Germany Online
German Property Tax Return Services & Fees
We provide a complete German tax return filing service specifically for non-resident property owners in Germany.
We offer:
- Filing of personal German tax return
- Partnership German Tax Return Filing
- German Capital Gains Tax (CGT) Return
- Assistance with German Tax Payments
As a non-resident landlord in Germany, you are obliged to file a rental income tax return in Germany and in your home country.
At Property Tax International we understand that German tax filing can be confusing, especially for those who don’t speak German.
Initial documents review – €150
If you are earning income from a property overseas, it is likely that you will have to file a tax return in Germany. This fee covers a review of your property-related documents and the initial set up of your tax filing in Germany with our tax professionals. We will review all your documents and help you file your tax return in Germany online. If you’re unsure how to file taxes in Germany, consider consulting a tax advisor.
German Rental Income Tax Return – €420
This is a complete service, covering the necessary German property tax returns for your furnished, non-furnished or leaseback property (single or married – 1 property). A detailed review of all supporting documents is required. Property Tax International will help you file your German tax return easily online.
Discounted rate – €350
This is a lower fee option that is available instead of the Personal Income tax return option above. Our team will review statements from your management company and your mortgage interest certificate. If you wish to avail of this reduced fee option, no further supporting documents should be submitted for review. All information required for the purposes of the preparation of the return should be included in the management company statement and mortgage interest certificate.
Additional property – €175
This fee is due for the second and each subsequent property.
Additional owner – €75
This fee is due where there are multiple owners of a property, if the owners are not a married couple. This charge covers the preparation of the additional personal return due. This fee applies in addition to the fees outlined in the two points above, regardless of whether the property is a furnished, unfurnished or leaseback property. If you have more questions regarding real estate taxes in Germany, you can also contact a member of our tax team, and check how Property Tax International can help you.
German Capital Gains Tax Returns – starts at €400 (single or married – 1 property)
The price will be based on the complexity of the case. For additional information, you can also contact a member of our international tax team.
Documents retrieval fee – €50
This fee will apply if you require Property Tax International to obtain some documents on your behalf, excluding bank and mortgage statements.
Assistance with tax audit – starts at €99
Tax audit assistance pricing is determined by case complexity. For more details, reach out to a member of our international tax team.
Administrative fee – €30
This fee is obligatory and due for each year of submission. It covers postage, phone calls, photocopying etc.
Assistance with tax payments – €30
Our team will help you transfer your tax liability to the local tax office. For additional information, you can also contact a member of our international tax team.
Multiple years discount – 10%
Available where returns for 2 or more tax years are required. This discount is applicable to the annual fees excluding any once-off fees and administrative fees and does not apply where other discounts/reductions have been granted.
Multiple tax countries discount
Clients who avail of our tax-filing services for two (or more) countries can claim a 10% discount on our fees. For example, if you file a Spanish and French property tax return, we will reduce our fee by 10%.
This discount does not apply where other discounts/reductions have been granted.
Notes:
- All fees are inclusive of VAT.
- Prices are based on the provision of information in pre-agreed format – a surcharge of 20% may be applied for disorganized files.
- Prices are based on the provision of necessary backup documentation only – the inclusion of unnecessary documentation may result in the application of an additional charge.
Save time and stress. File your tax return in Germany online with Property Tax International.
Request a callback from a tax advisor
When you apply through this contact form:
- A tax specialist will contact you
- After specifying with you the services you need and the tax documents required, you will receive information regarding our final fees
- Before we can start work on your tax return, we will need you to share the necessary property information and tax documents with our team
Rental income tax in Germany
German landlords are liable to file a German property tax return and pay property income tax regardless of whether they are tax residents in the country or not.
An individual is considered a resident in Germany if this is their primary residence or they spend more than 183 days in the country during a period that may span two tax years.
Advance income tax payments may be required during the tax year (in March, June, September, and December). When releasing the assessment notice, the German tax office (Finanzamt) settles both the previous year’s rental income tax and the advance payments for the current year. The advance payments of property tax in Germany are generally based on the previous year’s tax liability.
Married individuals may be taxed jointly or separately but non-residents are not allowed to file a joint tax return in Germany.
Our property tax professionals can help you file your German taxes online.
Property tax in Germany
Local property tax in Germany is imposed by the municipal authority. The German local tax is calculated using a value that is generally lower than the purchase price.
The tax rate in Germany applied to this value may range from 2.6% to 10% depending on the type and location of the property.
UK & Irish residents
There are no current changes to taxation for UK residents as a result of Brexit.
If you are resident in the UK or Ireland you will have to report any income received in Germany on your annual resident tax return (i.e. your Irish or UK tax return).
You are also obliged to file a German tax return. There are double taxation agreements between Germany and Ireland and Germany and the UK, so relief from double taxation is usually available.
A dedicated property tax advisor from our team can provide advice regarding double taxation relief and/or filing your resident tax return and the tax return in Germany.
Capital Gains Tax in Germany
Capital Gains Tax in Germany applies to the money you make when you sell certain investments, like stocks or property.
The Capital Gains Tax rate in Germany for non-residents is 25%, and there’s an additional 5.5% charge known as the solidarity surcharge, making it a total of 26.375%.
This tax is taken from your earnings right away. You can’t deduct the expenses you had from the Capital Gains Tax.
However, there’s something called the ‘investor’s allowance’ that can help. This allowance is (2023). If you’re married and filing taxes in Germany together, this allowance gets doubled.
For certain cases, like when you sell a significant part of a company, special rules for the Capital Gains Tax apply.
Additionally, when it comes to investments like mutual funds, there are unique Capital Gains Tax regulations to consider.
If you sell something you have owned for less than a year or less than ten years (real property), you might have to pay Capital Gains Tax, but only if your profit exceeds 600 euros in a year.
If the property you sold was for your personal use, there’s a chance you could get some relief on the Capital Gains Tax you owe.
Our real estate tax professionals can help you with your Capital Gains Tax obligations in Germany.
Request a callback from a tax professional
The information provided here is intended as a guide only. While Property Tax International makes every effort to ensure that the information contained herein is accurate, we take no responsibility or liability for any inaccurate, delayed, or incomplete information, nor for any actions taken in reliance thereon.
File tax return in Germany online
All our German tax filing services are carried out in-house by our team of real estate tax professionals. We do not outsource any part of the process to a third party ensuring your income tax returns in Germany is managed at all times by Property Tax International.
Your dedicated property tax advisor will be your one point of contact throughout the entire process. You will have direct access to the real estate tax professional preparing your German tax returns who will also communicate directly with the German Tax Office when required.
FAQs
As a non-resident in Germany do I need to file tax returns in Germany?
Yes, when you receive income from a German source you must submit a German rental income tax return before the German tax authorities.
I receive rental income from my German property, what are my German tax obligations?
As a non-resident German property owner, you are obliged to file a German tax returns. Non-residents are subject to German personal income tax on income derived from their German property.
Do I need to apply for a German personal tax ID number?
No, you do not have to apply for a German tax ID number. It will be assigned automatically once your first German income tax is filed.
What is the deadline for submitting my rental income tax return in Germany?
The German tax returns must be filed by 31 July the year after the income was received. An extension to 31 December applies when a tax adviser prepares the return on your behalf.
What are the German income tax rates for non-residents?
German income tax rates range from 14% to 45%.
What is the additional tax burden I may have?
You are due to pay an additional solidarity surcharge of 5.5% on top of your income tax liability. You may also be liable to pay church tax of 8% to 9% on your income tax liability if you are a registered Church member.
I intend to sell my German property, what are my German capital gains Tax obligations?
If you make a gain when selling your German property you are liable to pay German Capital Gains Tax. The capital gains tax rate is the same as the German personal income rate. Profits from the sale of private real estate that has been held for more than 10 years are exempt from German capital gains tax.
As a non-resident owner of German property, am I due to pay German local taxes?
Local Property Tax (Die Grundsteuer) is applied to real estate in Germany. It is a communal tax levied by the local authority in each region with rates varying from location to location and based on the type of property.
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German Property Tax Rates and Deadlines
| Tax Year | January – December |
| Income Tax Rate in Germany | 14% – 45% Solidarity surcharge – 5.5% on top of your income tax liability In addition, if an individual is a registered church member, s/he might be charged an additional 8% to 9% on top of their income tax liability. |
| Local Property Tax | 2.6% to 10% |
| Income Tax Deadline in Germany | 31 July – with a tax advisor – 28 February of the next year |
| Capital Gains Tax Rate in Germany | 15% – 45% |
| Dual Tax Agreement with Ireland | Yes |
| Dual Tax Agreement with the UK | Yes |
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