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.
The Mietpreisbremse (new rent no higher than the local average plus 10%) has been extended: state regulations apply no longer than December 31, 2029 (law of July 17, 2025, BGBl. 2025 I No. 163). Increases under an existing lease are capped at 20% over 3 years, 15% in shortage areas. The deposit is at most three months’ rent excluding utilities; a tenant leaves with about 3 months’ notice.
What this changes in the calculation
Rent growth in Germany is capped by law; the model should assume indexation of no more than 15 or 20% over 3 years.
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.
On October 30, 2026 the 2.90% Bund maturing on February 15, 2036 cost 96.73% of par, a yield of 3.31%. The 2.50% Bobl maturing on April 16, 2031: price 97.36%, yield 3.14%.
What this changes in the calculation
Euro government bonds return 0.25 points a year less; the apartment looks slightly better against them.
The 2027 income tax reform bill (BT-Drs. 21/8235): tax-free allowance EUR 12,564, 45% rate from EUR 250,000, a new 47% from EUR 280,000; it does not change the 26.375% rate or the 10 year rule; first reading on October 8, 2026, hearings on November 4, 2026. The rent reform (BT-Drs. 21/6807): a cap on index-linked rent above 3% a year, a separate furniture surcharge, temporary lets of up to 6 months; hearings on October 14, 2026, no vote date.
What this changes in the calculation
Nothing yet; once adopted, tax on rent will rise for high incomes.
The 25% Abgeltungsteuer plus the 5.5% solidarity surcharge on it gives 26.375% (church tax of 8 or 9% of the tax on top). The tax-free allowance is EUR 1,000 per person, EUR 2,000 for spouses. Funds get a partial exemption: equity funds 30%, mixed funds 15%, real estate funds 60%, foreign real estate funds 80% (§20 InvStG); the base rate for the Vorabpauschale for 2026 is 3.20% (BMF letter of January 13, 2026).
What this changes in the calculation
Nothing: the rate is 26.375% for deposits, government bonds, corporate bonds and funds; for an equity fund the effective burden is 18.46% (26.375 × 0.7, calculation).
Annual inflation in the euro area in September 2026 was 3.8%. This is above the 3-year average the calculator uses: 3.29% for the euro (years 2023 to 2025).
What this changes in the calculation
Nothing yet: the calculator uses annual averages for 2016 to 2025; data for 2026 will appear in early 2027.