(2023) What do I need to know about rental income?

As a landlord, you must declare the basic rent and any service charges passed on to tenants as additional income. The costs incurred in this context can be deducted as income-related expenses.

Examples of rental income:

• Rental income for flats or rooms
• Rental income for garages/parking spaces
• Service charges passed on to the tenant
• Rent for advertising spaces and vending machine sites
• Interest on credit balances from building society contracts
• Compensation payment from a tenant for early termination of the lease
• Leases for undeveloped land
• Income from a hereditary building right

If rental income is below the 520 Euro annual threshold (e.g. for subletting), you can omit this information from your tax return. Income up to this threshold from temporary letting is exempt from income tax. This also applies to the temporary subletting of parts of your own rented flat. In this case, no corresponding income-related expenses can be claimed.

Note: From 1 January 2024, a new tax exemption threshold for rental income is to be introduced: Income from renting and leasing will remain tax-free if the total income is less than 1.000 Euro (§ 3 No. 73 EStG, introduced by the "Growth Opportunities Act").