Germany · tax rate
Germany non-resident rent tax: normal scale, no tax-free allowance
German rent for a non-resident is taxed at the normal 2026 scale, but the €12,348 basic allowance is effectively withheld (§ 50 EStG). Worked example.
Updated
Direct answer
A landlord with limited tax liability in Germany pays income tax on German net rent at the normal scale of § 32a EStG, but without the benefit of the basic allowance: § 50 EStG adds the €12,348 Grundfreibetrag to the taxable income before the scale is applied. In practice the first euro of German rent is taxed at about 14% and the rate rises from there. Only expenses connected with the German income are deductible, and several personal reliefs do not apply.
German income tax on rent for a non-resident (tax year 2026, checked 27 October 2026)
| Item | Rule | Source |
|---|---|---|
| Scale | § 32a EStG from 2026: 0% up to €12,348, then progressive zones, 42% from €69,879 and 45% from €277,826 | § 32a EStG |
| Basic allowance for a non-resident | Taxable income is increased by the €12,348 Grundfreibetrag before applying the scale | § 50 (1) sentence 2 EStG |
| Deductible costs | Only Werbungskosten economically connected with the German income | § 50 (1) sentence 1 EStG |
| Reliefs that do not apply | Those listed in § 50 (1) sentence 4, including most special-expense deductions, § 32 child allowances and § 32a (6) | § 50 (1) sentence 4 EStG |
| Solidarity surcharge | Nil up to €20,350 of income tax (single filer); above it, 5.5% of the tax but no more than 11.9% of the excess over €20,350 (for example, €77.35 on €21,000 of tax) | § 3 (3) and § 4 SolZG |
Working route
Worked example: €12,000 of rent, €3,600 of costs
Our calculation, for one owner with no other German income. Net rent is €8,400. A resident with that income alone would pay nothing, because it is below €12,348. For a non-resident the scale is applied to €8,400 + €12,348 = €20,748, which gives €1,756 of income tax. No solidarity surcharge at this level.
Where it is filed
The return for limited tax liability (ESt 1 C) with Anlage V carries the rent and the costs. See the Germany forms page for how the two fit together.
Check the treaty and the facts first
Whether you have limited tax liability at all depends on your residence and your treaty position. That question comes before the rate.
Hard stop
Mixed residence during the year, a company or partnership owner, holiday-let services or a sale require tailored advice before the figures above are relied on.
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