A German resident with an apartment in Georgia: rent and sale are exempt but count for the rate
The double taxation treaty between Germany and Georgia was signed on June 1, 2006, has been in force since December 21, 2007 and applies from January 1, 2008. Rent from and the sale of an apartment in Georgia are taxed by Georgia (arts. 6 and 13); Germany exempts them but takes them into account when setting the rate on other income (art. 23). Interest on a deposit in a Georgian bank is taxed only by Germany (art. 11), that is at 26.375%; rental losses outside the EU can only be offset against income of the same kind from the same country (§2a EStG).
What this changes in the calculation
For a German resident the final tax on rent in Georgia equals the Georgian 5%, plus a higher rate on German income.
- Source
- bundestag.de
- Status
- verified
- Published