German rental income by country of residence
The German part is the same in almost every case: a non-resident return (ESt 1 C with Anlage V), German deductions, and tax from the first euro because the Grundfreibetrag does not apply. The exception is a landlord who can opt for treatment as a resident under §1 Abs. 3 EStG — at least 90 % of worldwide income taxable in Germany, or very little income elsewhere — who files ESt 1 A and keeps the allowance. The home-country part is where readers go wrong — each country recomputes the profit under its own rules, then either credits the German tax or exempts the income.
Every page below follows the same German flat: €12,000 rent, €5,000 German profit and €933 German tax for 2025. Only the second step changes.
| You live in | Relief | What happens at home |
|---|---|---|
| CanadaTax credit | Tax credit | Rental statement in CAD, optional CCA, T2209 credit; no carryover; T1135 |
| IndiaTax credit | Tax credit | House property income (30 % standard deduction, interest), credit via Form 67; Schedule FA |
| NetherlandsExemption | Exemption | Box 3 asset; reduction for the German property's share of box 3 tax |
| SwitzerlandExemption | Exemption | Exempt from income and wealth tax but rate-setting; debts reallocated by assets |
| United KingdomTax credit | Tax credit | SA106 profit without AfA, 20 % interest reduction, credit capped at UK tax; excess lost |
| United StatesTax credit | Tax credit | Schedule E under US rules (30-year ADS), Form 1116 credit; excess carried 1 back / 10 forward |
| FranceExemption | Exemption | Guide in French: forms 2047 and 2044, taux effectif |
German rental income for Canadian residents
Canadian resident with a rental flat in Germany? File ESt 1 C + Anlage V, then T776 in CAD, a T2209 credit, and T1135 above CAD 100,000.
German rental income for residents of India
Back in India and renting out a flat in Germany? File ESt 1 C + Anlage V, then ITR-2 with Schedules FA, FSI, TR and Form 67 for the credit.
German rental income for residents of the Netherlands
Dutch resident with a rented flat in Germany? Germany taxes the actual profit (ESt 1 C + Anlage V); the Netherlands taxes box 3 with a reduction.
German rental income for residents of Switzerland
Swiss resident with a rented flat in Germany? Germany taxes the rent; Switzerland exempts it but uses it for the rate and reallocates your debts.
German rental income for UK residents
UK resident letting a flat in Germany? File ESt 1 C + Anlage V, then recompute for SA106: no AfA, 20 % interest reduction, credit for German tax.
German rental income for US residents
US resident with a flat in Germany? File ESt 1 C + Anlage V first, then Schedule E with ADS and a Form 1116 credit. FBAR and Form 8938 rules.
Your country is not listed? The German step is identical; read non-resident tax in Germany and check your treaty on the DBA page.