How are communal areas treated?
Communal areas (e.g. corridor, bathroom) in a sublet flat that can be used by overnight guests must not be included in the calculation solely based on the proportion of living space.
The share of living space for these areas must also be divided among the number of residents in the household.
Example: The communal areas in a 100 sqm flat occupy a total of 30 sqm, and in addition to the landlady, her daughter and the subtenant live in the flat. In this case, 10% (30 sqm / 100 sqm / 3 people) of the expenses for communal areas can be claimed.
(2023): How are communal areas treated?
Which expenses can I claim as income-related expenses?
Rental expenses for subletting include, among others:
- Rent
- Additional costs such as heating, water, property tax
- Renovation and maintenance costs
All expenses must be apportioned based on the square metre area of the sublet rooms if they cannot be directly attributed to the subletting.
Example: If the flat is 100 sqm and the sublet room is 20 sqm, then 20% of the rental expenses and additional costs may be claimed as income-related expenses.
Expenses directly attributable to the subletting include, for example, fees for online platforms such as Airbnb, 9flats or wimdu, purchase costs for furniture or craftsmen's services if these were incurred solely due to the subletting. All expenses should generally be proven by receipts. If a domestic help is employed for cleaning the rented rooms, payments must also be made cashlessly (by bank transfer) to be recognised for tax purposes.
Note: The Hamburg tax authority currently points out that rental portals must provide landlords' data to the tax authorities.
(2023): Which expenses can I claim as income-related expenses?
Do I have to declare rental income from AirBnB and similar platforms?
If you rent out individual rooms in your owner-occupied, owned or rented flat, you generally earn income from renting and leasing, which must be declared in the tax return.
Taxes are due on income from rentals via online platforms
- if the rental income exceeds the allowance of 520 Euro.
- if the total income is higher than the basic allowance.
- if the subletting is operated commercially.
Allowance of 520 Euro per year
For simplification, rental income of less than 520 Euro per assessment period may remain untaxed (R 21.2 para. 1 EStR). However, the amount of 520 Euro is not a tax-free amount but an allowance, i.e. if your rental income exceeds this amount by just one Euro, you must declare and tax the entire income in the tax return.
If income from subletting is concealed or no tax return is submitted, this is considered tax evasion. Tax offences can be prosecuted retroactively for up to 10 years.
Attention: The Hamburg tax authority currently points out that rental portals must provide the tax authorities with data on landlords.
Basic tax allowance
If the total income from all types of income is below the basic allowance, no taxes need to be paid. 2023 the basic allowance is 10,908 Euro for single persons and 21,816 Euro for married couples.
Commercial rental
Income from renting and leasing is subject to business tax if, in addition to pure rental, unusual special services are provided. These unusual special services include, among others, staff, a breakfast offer or daily room service. Room cleaning or the provision of bed linen and towels are not considered special services. In this case, you would have to declare the income from your rental activity in Annex G.
If income from subletting is concealed or no tax return is submitted, this is considered tax evasion. Tax offences can be prosecuted retroactively for up to 10 years.
Sale of owner-occupied property
A capital gain remains tax-free if the property was used continuously and exclusively for own residential purposes (Alternative 1) or in the year of sale and the two previous years (Alternative 2). Renting excludes use for own residential purposes, unless it is only temporary renting of individual rooms. The Federal Fiscal Court has ruled that in the case of daily rental, rooms that are part of the sale are taxable (BFH ruling of 19.7.2022, IX R 20/21).
Example: A married couple rents out individual rooms in their owner-occupied terraced house on a daily basis to trade fair guests and sells the property at a profit. The tax office determines income according to § 23 EStG due to the rental of individual rooms, which the Federal Fiscal Court confirms. The ratio of living areas is used to calculate the proportionately taxable capital gain.
Exception: In the case of temporary rental of the entire flat, the capital gain is fully taxable, unless Alternative 2 is met.
(2023): Do I have to declare rental income from AirBnB and similar platforms?
