Negative German rental income on Anlage V: what happens?
AfA, mortgage interest, loss carry context and non-resident limits
1. Why rental income can be negative
AfA depreciation, mortgage interest, repairs, property tax, insurance and management fees can exceed annual rent. Anlage V then shows a rental loss instead of rental profit. The calculation still needs source records and a correct building basis.
2. Negative result is not the same as a refund
A negative rental result lowers German taxable income, but a refund exists only if there is tax already paid or withheld and the assessment produces a repayable balance. Many non-resident landlords with no other German income simply preserve a source-backed loss position.
3. Example
Rent received: 9,600 EUR. Mortgage interest, Hausgeld, insurance and repairs: 7,400 EUR. AfA: 5,200 EUR. Rental result: -3,000 EUR. The key question is not whether the loss looks good, but whether every deduction is supported and assigned to the correct tax year.
4. Where Anlage V Easy stops
Anlage V Easy prepares the rental-income calculation and ELSTER mapping. It does not advise on loss offset, loss carry-forward, refund strategy, treaty effects or disputes with the Finanzamt.
Common questions
What is the short answer on Negative German rental income on Anlage V: what happens??
A German rental property can show negative rental income when AfA, interest and deductible expenses exceed rent. That does not automatically create a cash refund for a non-resident landlord. The loss treatment depends on the full German tax return, other German income and official assessment. Keep the records and file consistently.
What should I know about why rental income can be negative?
AfA depreciation, mortgage interest, repairs, property tax, insurance and management fees can exceed annual rent. Anlage V then shows a rental loss instead of rental profit. The calculation still needs source records and a correct building basis.
What should I know about negative result is not the same as a refund?
A negative rental result lowers German taxable income, but a refund exists only if there is tax already paid or withheld and the assessment produces a repayable balance. Many non-resident landlords with no other German income simply preserve a source-backed loss position.
When should a foreign landlord use a Steuerberater instead?
Use a Steuerberater for complex ownership, short-term rental with services, sale-year issues, inheritance, treaty conflicts, disputes with the Finanzamt, or any case where the tax position needs personal advice.
Last reviewed: by Yann Lephay.
- Werbungskosten for German rental property — the complete listA complete guide to deductible expenses for non-resident landlords filing Anlage V.
- Double taxation treaties for German rental income — UK, US, France explainedHow non-resident landlords apply Article 6 to offset German taxes against their home-country liability.
- Taxfix and Anlage V rental income: what foreign landlords should checkWhy a generic tax app may not fit a non-resident German rental case
- Non-resident tax in Germany — the beschränkte Steuerpflicht guideWhat §49 EStG means for foreign property owners