Residence abroad, rented properties in Germany
July 9, 2012 | 30,00 EUR | answered by Dr. Yanqiong Bolik
Good day!
Since 2007, I have been living in a European country. Together with my girlfriend, I own (50%) 2 ground floor apartments in Munich, which have been rented out since then. Do we have to pay taxes on the rental income in any case? Or is there a minimum threshold from which this applies? Which tax return do we have to submit? What can we deduct and do we have to declare the income we have abroad, even though we also have to submit a tax return here? I had read something about limited tax liability and also inquired at the tax office, but the matter is not entirely clear to me. I hope you can help shed some light on the matter.
Thank you very much!
Dear inquirer,
Thank you for your inquiry, which I am happy to answer taking into account your contribution and the rules of this platform.
Please note that my explanation is based on the situation presented, and that adding, omitting, changing information, or the ambiguity of the information can change the tax result.
According to the description of the situation, you have neither residence nor habitual abode in Germany. You are subject to limited tax liability in Germany only with income from the rental of the EU apartments in Munich. The profits (rental income minus deductible expenses) from the rental of this apartment are subject to German income tax. You are required to file an annual tax return for the domestic income from the rental received in the past calendar year (assessment period). Your other income from your home country which does not belong to your German domestic income according to § 49 EStG does not need to be reported in the income tax return. The income tax return includes the four-page main form ESt 1 C and additionally the attachment V for rental income.
Deductible expenses include all costs incurred for the acquisition, security and maintenance of income from the rental. Typical items of deductible expenses include depreciation, financing costs, administrative expenses, operating costs (unless borne by the tenants), costs for tenant searches, etc.
I hope that I could be of assistance to you.
If there is still uncertainty, please feel free to use the follow-up function.
Best regards,
Dr. Yanqiong Bolik
Tax advisor
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 2132 1815
Email: info@zdbz.de
www.steuerberatung.zdbz.de
