(2025) What do I need to know about rental income?

As a landlord, you must declare the basic rent as well as the service charges passed on to tenants as income. The costs incurred can be deducted as advertising costs for tax purposes.

Examples of rental income

Rental income includes, among other things:

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

Tax allowance for low rental income

If your annual rental income is less than 520 Euro, for example through subletting, you can omit this from your tax return. This income, which comes 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, however, no corresponding advertising costs can be deducted.