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 tax professional 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.

File German taxes online

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 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 professional can help you with your Capital Gains Tax obligations in Germany.
Learn More about German Property Tax

File German taxes online, German tax return online

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+353 1 635 3722

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The information provided here is intended as a guide only. While Property Tax International (PTI Returns) 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.

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 return in Germany is managed at all times by PTI Returns.

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 return who will also communicate directly with the German Tax Office 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 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.

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 as PTI Returns – 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

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 an income tax return both in your home country and Germany. We can also help you file your tax return in your home country.

At PTI Returns we understand that tax filing in Germany can be confusing, especially for those who don’t speak German.

With property tax professionals fluent in multiple languages filing taxes in Germany with PTI Returns becomes a breeze.

Save time and stress.

File your tax return in Germany with PTI Returns.

  • Initial documents review – €150
  • German Rental Income Tax Return – 420€
  • Discounted rate – 350€
  • Additional owner – €75
  • Administrative fee – €30

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%.

Note: This discount does not apply where other discounts/reductions have been granted.

Notes:

  1. All fees are inclusive of VAT.
  2. Prices are based on the provision of information in pre-agreed format – a surcharge of 20% may be applied for disorganized files.
  3. 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.

Learn more about rental property income taxes in Germany.

Request a callback from a tax advisor

+353 1 635 3722

When you apply through this contact form:

  1. A tax specialist will contact you
  2. After specifying with you the services you need and the tax documents required, you will receive information regarding our final fees
  3. 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