What tax implications does renting holiday apartments have?
March 9, 2023 | 40,00 EUR | answered by Petra Höfer
Dear tax advisor,
my name is Babette Walter and I have recently started renting out holiday apartments. However, I am unsure about the tax implications of this income and would like to learn more about it. Currently, I have two holiday apartments that I rent out through platforms like Airbnb.
My main concern is to understand how the income from renting out the apartments affects my tax situation. Should this income be considered as commercial income? What taxes do I have to pay on it and what expenses can I claim for tax purposes? Are there any special regulations for renting out holiday apartments that I should be aware of?
Furthermore, I am worried about how to properly document my income and expenses in order to withstand a possible tax audit. Are there any specific regulations or recommendations for accounting when renting out holiday apartments?
Lastly, I would like to know if there are ways to optimize my tax burden and potentially save on taxes.
I would be very grateful if you could provide me with information and recommendations to clarify my tax situation regarding the rental of holiday apartments.
Thank you in advance for your support.
Kind regards,
Babette Walter
Dear Mrs. Walter,
Thank you for your inquiry regarding the tax implications of renting out your holiday apartment. I am happy to provide you with detailed information on this topic.
Firstly, it is important to know that income from the rental of holiday apartments is generally considered as income from renting and leasing (§ 21 EStG). This is income from a private area, as long as the rental is not carried out as part of a commercial activity. Commercial income arises when you rent out the holiday apartments with the intention of making a profit and this is done on a larger scale.
For income from renting and leasing, you will have to pay income tax. The amount of tax depends on your personal tax rate and the income earned. Additionally, you can claim certain expenses for tax purposes, such as advertising costs (e.g. maintenance and repair costs, management costs, depreciation). The depreciation of the building and furnishings can also be taken into account for tax purposes.
There are certain specifics to consider when renting out holiday apartments. For example, you must consider value-added tax if you offer additional services such as breakfast or cleaning. Additionally, there are special regulations for the rental of furnished holiday apartments that can affect the tax treatment.
To accurately document your income and expenses, proper bookkeeping is essential. You should keep all receipts carefully and regularly keep accounts in order to be prepared for a possible tax audit. It is advisable to keep a separate account for your rental income and expenses and to record all relevant data.
To optimize your tax burden and save on taxes, you should inform yourself about possible tax planning options. A tax advisor can assist you in finding individual solutions and utilizing tax benefits.
I hope this information is helpful and answers your questions regarding the tax situation when renting out holiday apartments. If you have any further questions, please do not hesitate to contact me.
Best regards,
Petra Höfer
