Verbilligte Vermietung
Renting below market rent — the 50 % and 66 % thresholds.
Verbilligte Vermietung means letting a flat for residential use below the local market rent, typically to a relative. §21 Abs. 2 EStG sets two thresholds measured on the ortsübliche Marktmiete including operating costs. Below 50 %, the letting is split into a paid and an unpaid part, and costs are deductible only in proportion to the paid part. At 66 % or more for a lasting residential lease, the letting counts as fully paid and all costs remain deductible. Between 50 % and 66 %, full deduction depends on a positive long-term income forecast (Totalüberschussprognose); without it, costs are cut proportionally. Use the local Mietspiegel or comparable listings as evidence and keep it with your records, because the Finanzamt tests the ratio, not the intention.
Last reviewed: by Yann Lephay.