Doppelbesteuerungsabkommen (DBA)
A double-taxation treaty between Germany and another country.
A Doppelbesteuerungsabkommen is a bilateral tax treaty that decides which country may tax a given income and how the other country avoids taxing it twice. For rental property, almost every German treaty follows the OECD model: the country where the property is located keeps the right to tax the rent (Belegenheitsprinzip). In practice that means Germany taxes your German rental profit first, through a limited German return with Anlage V, whatever your nationality or home country. The treaty then changes only what your home country does with that same profit. Some countries exempt it and use it only to set your tax rate (exemption with progression); others tax it and give a credit for the German tax actually paid. The treaty never removes the German filing obligation. Keep the German Steuerbescheid: a credit country usually asks for it as proof of the tax paid.
Last reviewed: by Yann Lephay.