Double taxation agreement Austria Germany?

Hello, I have a question about the double taxation agreement. If I, as an Austrian citizen, buy an apartment in Germany, do I have to pay taxes on the rent? In my opinion, I don't have to because I fall under the tax-free allowance in Germany. Am I right in thinking this or is there a catch?

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Mungukun
1 year ago

when I buy an apartment as an Austrian citizen in Germany

Then there is already a basic tax payable to the German Fiskus.

I have to pay for the rent

Yes Income Tax you must pay due to the limited tax liability in Germany.

I do not think that I am in Germany under the tax exemption

This does not apply to limited taxable persons but only to unlimited taxable persons.

Giota210
1 year ago

According to the DBA, Germany has to tax your income from rental and lease (besides the basic income tax on the acquisition of the apartment).

In Austria they are tax-free.

Austrian citizen

You are limited to taxable in DE with domestic income (49 EStG).

There is no basic amount until your taxable income remains tax-free.

But under certain conditions, you can make an application for annulment. In the case of tax liability,

  • Earnings per year at least 90% of German income tax are subject to OR
  • your Austria. Income does not exceed the basic amount (now 10.908€).
Giota210
1 year ago
Reply to  Kobee92

also my main source of income is 90% Austria

For the request for annulment. However, your income must be too low. 90% of DEUTSCHEN income tax is subject to…

Fall your Austria. Income less than the current German basic amount (i.e. less than €10.908)? This would also be possible

are there any advantages?

If you order the above-mentioned application and are then treated as an unlimited taxable person, you have more advantages than if you are a fraud. Stpfl.

  • You have the basic amount until your income to be taxed remains untaxed (for a fee). Stpfl. would be taxing everything).
  • You can also possibly have other costs such as sickness costs, maintenance payments etc. (Object. Loads…) consider