Moving from Germany to Austria - with a rented property in Germany.
May 12, 2021 | 30,00 EUR | answered by Steuerberater Knut Christiansen
Hello,
In the middle of the year, I am planning to move from Germany to Austria to live there. Therefore, I have to deregister in Germany and register in Austria. However, I also own an apartment in Germany, where I am currently registered, and where a subtenant also lives. This will not change. I have also been paying my income taxes in Germany (as a freelancer).
What should I do next? Should I register this apartment as a second residence for me? Is this advisable or not? I believe that I will not actually use this second residence.
How and where do I declare the rental income? In Austria or Germany? I assume that the property tax in Germany still needs to be paid.
Thank you for your assistance!
Good day and thank you for using frag-einen.com!
I would like to answer your question as part of an initial consultation. Please note that this forum cannot replace personal advice, but only serves as an initial tax assessment.
If you leave Germany, you will only be limited tax liable in Germany. This means that only domestic income in Germany (rental income) will be taxed. Therefore, in the future, you would have to declare the income from rental and leasing in a tax return for limited tax residents. An important note is that as a limited tax resident, you are no longer entitled to a basic tax allowance. Positive income will then be taxed from the first euro. If you maintain a residence in Germany, you would be generally unlimited tax liable. In this case, your income from Austria (and possibly other countries) would also be taken into account. This could potentially lead to a higher tax burden, but cannot be easily answered. Simply registering in Germany does not automatically result in unlimited tax liability. You must actually use or be able to use the residence. Since this is unlikely from your point of view, the aforementioned limited tax liability would apply.
Best regards,
Knut Christiansen
Tax advisor
