Letting Costs
Overseas investors must pay German Income Tax if they make money from letting their German property. This ranges from 14-45%. Non-German residents do not qualify for tax-free allowances, but mortgage interest, management fees and any depreciation in property value are tax deductible.
Management Fees range from €15-22 per unit per month, excluding Value-Added Tax (VAT), while Letting Fees are 1.5 times the monthly rent, excluding VAT. Service Charges can vary.
Taxable Income |
Income tax Rate (2017) |
Up to €45,237 |
14% - 42% |
€45,237 - €247,483 |
42% |
More than €247,483 |
45% |
Source: Jones Lang LaSalle