Do I also have to pay taxes if I only rent out my property temporarily?
June 14, 2023 | 50,00 EUR | answered by Petra Höfer
Dear tax advisor,
I am Marie Kessler and I own a property that I rent out occasionally. I am unsure whether I have to pay taxes if I only rent out the property temporarily. So far, I have not generated any rental income as I mainly use the property myself. However, this year I have decided to rent out the property occasionally to generate additional income.
My concern is that I do not know exactly how renting out the property will affect my tax liability. I have heard that I have to pay income tax on rental income, but I am not sure if this also applies to temporary rentals. I also wonder if I have to pay other taxes such as value-added tax or property tax for the rented property.
Could you please explain to me if and to what extent I have to pay taxes if I only rent out my property temporarily? Are there ways to save taxes or take advantage of tax benefits? I would greatly appreciate your help and advice on this matter.
Thank you in advance.
Yours sincerely,
Marie Kessler
Dear Mrs. Kessler,
Thank you for your inquiry regarding the tax implications of temporarily renting out your property. I would be happy to explain how the rental will affect your tax obligations and what taxes you may need to pay.
In general, income from renting out property is taxable. This means that you will need to pay income tax on the rental income. It does not matter whether you rent out the property permanently or temporarily. Therefore, if you earn rental income for the first time this year, you will need to declare and pay taxes on it in your income tax return.
In addition to income tax, value-added tax (VAT) may also be relevant if you rent out furnished rooms or holiday apartments. In this case, you will need to pay VAT on the rental income. However, it is important to note that the VAT liability depends on various factors, such as the type of rental and the amount of income.
As the owner of a property, you will also need to pay property tax. This tax is levied regardless of whether the property is rented out and is used to finance municipal tasks.
There are various ways to save taxes or take advantage of tax benefits. For example, you can claim deductible expenses related to the rental, such as maintenance costs, rental loss, or management expenses. These expenses reduce your taxable income and can therefore reduce your tax burden.
It is advisable to seek advice from a tax advisor to consider all tax aspects of your rental and to optimize potential tax benefits. I am available for individual consultation and can help you fulfill your tax obligations and save taxes.
I hope this information has been helpful. Please feel free to contact me with any further questions.
Sincerely,
Petra Höfer
Tax Advisor
