Rent in Germany: a 14 to 45% scale, no tax-free allowance for a non-resident
Rental income is taxed on the scale: in 2026 the tax-free allowance is EUR 12,348, then 14 to 42%, and 45% from EUR 277,826. For a non-resident, taxable income is increased by the tax-free allowance (§50 EStG), so tax is due from the first euro. Building depreciation is 2% (built 1925 to 2022), 3% (after December 31, 2022), 2.5% (before 1925); new rental apartments get an extra 5% for 4 years (§7b) and 5% of the remaining value (§7 para. 5a).
What this changes in the calculation
In the German rental model a non-resident pays from 14% on net income after depreciation.
- Source
- gesetze-im-internet.de
- Status
- verified
- Published