International rental income

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  • Are you the owner of a holiday home in Florida or Spain or other countries?
  • Do you earn income from it?
  • Are you planning to purchase a foreign property with the intention to rent it?
  • Are you planning to sell your foreign property?

If so, these transactions also have an impact on your German tax return.

In principle, under the usual double taxation agreements (DTAs), the state of residence is entitled to tax rental income.

Double taxation is avoided in most DTAs by exemption subject to progression reservation (exception, for example, Spain; here the credit method, in this case we need to file the “Anlage Vermietung” in the German tax return). We check whether there is an exception to the progression reservation in accordance with national regulations.

For example, the rented house in Florida must therefore be recorded in the US tax return and exempt for taxation in Germany, but subject to progression reservation.

We advise on the calculation of progression income and prepare your “Anlage AUS” for your German tax return. Progression income must be determined in accordance with German regulations. We cover all possible advertising costs and take advantage of the depreciation options.

We are also looking into the possible use of losses regarding local loss clearing rules.

In addition to questions about income tax, we also clarify questions of VAT.

International cooperation partners help you to prepare tax returns abroad.

We look forward to hearing from you!


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