Zufluss- und Abflussprinzip
Rental income and costs count in the year the money moves.
German rental income follows a cash principle set by §11 EStG: income belongs to the year it is received, expenses to the year they are paid. December rent paid in January is, in principle, January income. The exception covers regularly recurring payments that are both due and paid within a short window around the turn of the year — ten days, from 22 December to 10 January — which are attributed to the year they economically belong to. Rent for January that is due on 3 January but arrives on 29 December therefore counts in January's year. December rent that was due in early December but only arrives on 3 January stays January income: its due date lies outside the window. Advance payments for a use of more than five years must be spread, and a market-standard Disagio on a mortgage is an exception to that spreading. Build the Anlage V figures from bank statements dated within the tax year, then check the payments in the first and last ten days.
Last reviewed: by Yann Lephay.