Renting out as a foreigner: tax and duties
The tax you pay and the duties you have when you let a flat in Germany and live abroad.
You can rent out property in Germany, even if you do not live here. You pay tax on the rent in Germany, using the Anlage V (rental income schedule), and you have the same duties as a German landlord.
What to know as a landlord who lives abroad
Your nationality does not matter. What counts is where the property is.
- 1
You are allowed to let
You can own and let property in Germany whatever your nationality and wherever you live.
- 2
You pay tax in Germany
Rental income from property in Germany is always taxed in Germany. The tax rate is 14 to 45%.
- 3
File the Anlage V
The Anlage V goes to the Finanzamt (tax office) where the property is, every year.
- 4
Get the Energieausweis first
Get the Energieausweis (energy certificate) before you advertise the flat (§ 80 GEG).
- 5
Keep the Kaution separate
Keep the Kaution (deposit) separate from your own money (§ 551 BGB).
- 6
Send the Nebenkosten statement on time
Send the yearly Nebenkosten statement (Betriebskostenabrechnung) within 12 months (§ 556 BGB).
Why this matters
Under § 49 Abs. 1 Nr. 6 EStG, rent from property in Germany counts as domestic income. So you are taxed where the flat is, not where you live.
General information, not legal advice.
Frequently asked questions
Can I rent out property in Germany as a foreigner without living here?
Yes, you can rent out property in Germany without living here. You can own and let property whatever your nationality and wherever you live. As a landlord you have the same duties as a German landlord.
Do I pay German tax on rental income if I live abroad?
Yes, rental income from property in Germany is always taxed in Germany (§ 49 Abs. 1 Nr. 6 EStG). You file a German tax return with the Anlage V for it.
Do non-resident landlords get the Grundfreibetrag (basic tax-free allowance)?
Non-resident landlords usually do not get the Grundfreibetrag. Their German rental income is then taxed from the first euro (§ 50 EStG). EU/EEA citizens who earn at least 90% of their income in Germany can opt in under § 1 Abs. 3 EStG and then get the allowance.
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