Income tax on rent, worked example, in Germany

Non-resident couple´s joint monthly rental income1	€1,500	€6,000	€12,000
Annual Rental Income	18,000	72,000	144,000
Less Costs2	(1,500)	(5,100)	(9,200)
Less Depreciation3	(5,701)	(20,160)	(40,320)
= Taxable Income	10,799	46,740	94,480
Income Tax Rates
Income Tax Due	462	11,545	31,617
Annual Income Tax Due	€462	€11,545	€31,617
Surtax
Solidarity surcharge 5.5%4	25	634	1,738
Annual Income Tax Due	€487	€12,179	€33,355
Tax Due as % of Gross Income	2.71%	16.91%	23.16%
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Notes

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¹ The property is jointly owned by husband and wife.

² Estimated values. Actually incurred expenses effectively connected with the property can be deducted from the gross rental income to arrive at the taxable income (property management fees, maintenance and repairs, etc.).

³ Depreciation is available on the building only, not on the land. For properties with land, it is assumed that 70% of the total costs accounts for the building.

⁴ The 5.5% solidarity surcharge is levied on the annual income tax liability.