Vorauszahlungen
Quarterly advance tax payments set after a profitable year.
Einkommensteuer-Vorauszahlungen are advance payments on next year's income tax. After a return shows tax due on rental profit, the Finanzamt usually sets them in the Steuerbescheid, payable on 10 March, 10 June, 10 September and 10 December (§37 EStG). They are only set if they reach at least €400 a year and €100 per instalment. They are then credited against the final tax of the year they cover. If your rental profit falls — a vacancy, a large repair, higher interest — you can ask the Finanzamt to reduce them with a short explanation and figures. Many first-time non-resident filers are surprised by them; budget for one year of German tax plus the next year's advances in the year after the first assessment.
Last reviewed: by Yann Lephay.