Rental income
Income tax on rental income, done right.
Letting out a flat or a house in Germany? Rental income is taxable, but so are most of the costs around it. We make sure you claim what you can.
- Landlord-friendly
- Depreciation handled
- Loss carryforward
What counts as rental income
- Rent (cold rent and operating-cost advances).
- Reimbursements of operating costs paid by tenants.
- Income from short-term lets (e.g. holiday rentals).
Typical deductible expenses
- Depreciation (AfA): Usually 2% or 3% per year on the building (not the land).
- Loan interest: Interest on mortgages used to finance the property.
- Maintenance & repairs: Repairs, renovations, modernisations within the rules.
- Operating costs: Property tax, insurance, waste, water, heating if borne by you.
- Management & advisory: Property management, lexo.tax membership fee, software.
- Travel: Visits to the property, viewings, owners' meetings.
New from September 2026
- The income caps for advice on rental and capital income are dropped. We can advise members regardless of the amount.
Frequently asked questions
What if I make a loss?
Losses from letting usually offset other income (wages, pension) in the same year and can be carried forward.
Holiday lets – different rules?
Yes. Short-term lets can be commercial. We check the threshold case by case.
Talk to a real advisor.
Free first call, 30 minutes, no obligation. Consultations are primarily in German; English is available on request.
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