Income tax on rent, worked example, in Germany
Taxation Researcher | October 05, 2018
| 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% |
| Source: Global Property Guide |
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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.
INCOME TAX 2010 |
|
| TAXABLE INCOME, (€) | TAX RATE |
| Up to €8,004 | 0% |
| €8,005 - €13,469 | 14% - 23.97% |
| €13,470 - €52,881 | 23.97% - 42% |
| €52,882 - €250,730 | 42% |
| Over €250,730 | 45% |
| Source: Global Property Guide | |