Owners of rental property in Germany are liable to pay tax regardless of whether or not they are tax resident in Germany. An individual is considered resident in Germany if s/he has their primary residence there or spends over 183 days in the country during a period which may span two tax years.

Advance income tax payments may be required during the course of 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 income tax and the advance payments for the current year. The advance payments are generally based on the previous year’s tax liability.

If two or more non-married persons own a German property a partnership must be established and partnership returns are required. Married persons may be taxed jointly or separately but non-residents are not allowed to file joint income tax returns.

Local German property tax

This is a communal tax imposed by the local authority. The tax is calculated using a value which is generally lower than the purchase price. The tax rate applied to this value may range from 2.6% to 10% depending on the type and location of the property.

UK & Irish residents

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). There are double taxation agreements between Germany and Ireland and Germany and the UK so relief from double taxation is usually available. Your PTI Account Manager can provide advice regarding double taxation relief and/or filing your resident tax return.

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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.

Overview of German Tax Services

At PTI we understand that the German tax system can be confusing especially for those that don’t speak German. We provide a complete income tax filing service aimed specifically at property owners who are resident outside Germany. With a multi-lingual team, PTI caters for investors and lifestyle property owners all over the world. We offer the following services:

  • Personal German Income Tax Return
  • Partnership Income Tax Returns
  • German Capital Gains Tax (CGT) Return
  • Assistance with German tax payments
german tax return services

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All our German tax filing services are carried out in-house by our team of German tax specialists. We do not out-source any part of the process to a third party ensuring your return is managed at all times by PTI.

Your dedicated tax specialist will be your one point of contact throughout the return process. You will have direct access to the tax specialist preparing your return who will also communicate directly with the German Tax Agency when required.

FAQs

  • What is the additional tax burden I may have?
  • You are due to pay an additional solidarity surcharge of 5.5% on the 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.

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Tax Rates and Deadlines

Tax Year
January – December
Income Tax Rate
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 additional 8% to 9% on the top of their income tax liability.

Local Property Tax
2.6% to 10%
Income Tax Deadline
May 31st/ Dec 31st (extended)
Capital Gains Tax Rate
15% – 45%
Dual Tax Agreement with Ireland
Yes
Dual Tax Agreement with the UK
Yes

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German Fees

Filing services are offered to non-German resident individuals and companies reporting rental income only.

Initial documents review – €150.00
This fee will apply only once for review of your property related documents for set up of your tax file with PTI.

Rental Income Tax Return – €400.00
This is a complete service covering the necessary tax returns and their annexes (single or married – 1 property), and includes a detailed review of all supporting documents. Routine communication with tax office is included in this service at no extra cost.

Discounted rate – €290.00
This is a lower fee option which is available instead of the Personal Income tax return option above. This option includes review only of a statement from a management company and a mortgage interest certificate. If an individual wishes to avail of this reduced fee option no further supporting documents should be submitted for review and all information required for the purposes of the preparation of the return should be included in the management company statement and mortgage interest certificate. No further discounts would apply.

Additional property – €75.00
This fee is due for 2nd and each subsequent property.

Additional owner – €75.00
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.

Capital Gains tax returns – starts at €400.00 (single or married – 1 property)
The price will be based upon complexity of case.

Documents retrieval fee – €50.00
This fee will apply if you require PTI to obtain some documents on your behalf, excluding bank and mortgage statements.

Administrative fee – €20.00
This fee is obligatory and due for each year of submission. It covers postage, phone calls, photocopying etc.

Assistance with tax payments – €30.00

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 fee and does not apply where other discounts/reductions have been granted.

Notes:

1. All fees are inclusive of VAT.
2. Prices are based on provision of information in pre agreed format – a surcharge of 20% may be applied for disorganised files.
3. Prices are based on provision of necessary backup documentation only – the inclusion of unnecessary documentation may result in the application of an additional charge.

Request a callback from Lisa

+353 1 635 3722

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