Rental income from letting property in Germany
Rental receipts minus expenses, with no flat-rate allowance: what counts as a receipt, when it is received and why a rent below 50 percent of the local rent costs deductions while one from 66 percent does not. The second module covers loan interest, depreciation, the 15 percent threshold for acquisition-related production costs and spreading larger repairs over two to five years. The third covers the 5 percent special depreciation for new rental flats, losses and VAT on a holiday flat. Three modules, each with a fully worked case study.
Intermediate3 modules65 minModule 1 free to read
2026 rules — verified on September 23, 2026
Figures are tied to dated, sourced tax constants. A module whose rules have changed is flagged for review, and is unpublished automatically beyond 90 days.
This content is part of the path: Letting a property and paying tax on it· Step 1 of 8· Next step: German landlord law: deposit, charges, rent rises, notice
By the end of this course, you can…
These outcomes are the modules' own: the promise cannot say anything the course does not teach.
- tell apart the four groups of cases in section 21(1) of the German Income Tax Act (EStG) and apply the priority rule of subsection 3
- determine what belongs to receipts, even when no money changes hands
- apply the cash principle of section 11 EStG to rent paid around the turn of the year and to prepayments
- apply the 50 and 66 percent thresholds for letting to relatives and work through the split
- recognise when letting alongside a salary forces a tax return
- assign a landlord's typical expenses to the numbers of section 9(1) of the Income Tax Act (EStG)
- apply the payment principle and its exceptions for prepayments and loan discounts
- distinguish maintenance expenditure from production costs
- test the 15 percent threshold for acquisition-related production costs within three years
- spread larger maintenance expenditure over two to five years under section 82b of the implementing regulation (EStDV)
- check the conditions for special depreciation under section 7b of the Income Tax Act (EStG), including the two planning application windows
- tell apart the cost ceiling and the maximum base per square metre and calculate the special depreciation
- know the events that cancel special depreciation retroactively
- set rental losses against other income and recognise their limits for tax prepayments
- place the VAT consequences of short-term letting to holidaymakers
The programme, module by module
Each module has its own page. Durations are derived from the actual text, never announced by hand.
- Module 122 minFree — no accountWhat counts as rental income, when it counts, and rent between relativesWhat you will be able to do
- tell apart the four groups of cases in section 21(1) of the German Income Tax Act (EStG) and apply the priority rule of subsection 3
- determine what belongs to receipts, even when no money changes hands
- apply the cash principle of section 11 EStG to rent paid around the turn of the year and to prepayments
- apply the 50 and 66 percent thresholds for letting to relatives and work through the split
- recognise when letting alongside a salary forces a tax return
- Module 221 minIncluded in the full courseRental expenses: deduct at once, spread or depreciateWhat you will be able to do
- assign a landlord's typical expenses to the numbers of section 9(1) of the Income Tax Act (EStG)
- apply the payment principle and its exceptions for prepayments and loan discounts
- distinguish maintenance expenditure from production costs
- test the 15 percent threshold for acquisition-related production costs within three years
- spread larger maintenance expenditure over two to five years under section 82b of the implementing regulation (EStDV)
- Module 323 minIncluded in the full courseSpecial depreciation for new rental flats, losses and the holiday flatWhat you will be able to do
- check the conditions for special depreciation under section 7b of the Income Tax Act (EStG), including the two planning application windows
- tell apart the cost ceiling and the maximum base per square metre and calculate the special depreciation
- know the events that cancel special depreciation retroactively
- set rental losses against other income and recognise their limits for tax prepayments
- place the VAT consequences of short-term letting to holidaymakers
What you take away
A handout you keep, not just a page you read. The sections are derived from the course itself: what is announced here is exactly what gets generated.
Participant handout (PDF)
PDF
- Learning objectives (3)
- Key figures (13)
- Mistakes to avoid (3)
- Official sources (3)
Exercise workbook (Word)
Word
- Learning objectives (3)
- Key figures (13)
- Mistakes to avoid (3)
- Official sources (3)
Answers live in a separate appendix: the participant handout and the workbook stay distributable before the exercise.
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Educational content, current with the sources cited. It does not replace advice tailored to your situation. These courses are neither certifying nor CPF-eligible: they prepare for no certification registered with the French RNCP or specific register.