Non-resident tax in Germany — the beschränkte Steuerpflicht guide

What §49 EStG means for foreign property owners

Updated 2 April 2026 10 min read

1. Resident vs. non-resident — which are you?

You are a German tax resident if you have a permanent home (Wohnsitz) or stay for 183+ days in the calendar year (gewöhnlicher Aufenthalt). If neither applies, you are beschränkt steuerpflichtig — limited tax liability. You pay German tax only on German-sourced income. Rental income from German real estate is always German-sourced.

2. What §49 EStG covers for property owners

§49 Abs. 1 Nr. 6 EStG: income from rental of German real estate. Includes the rental itself and gains from the sale within 10 years (Spekulationssteuer). Does not include German-source dividends or salary unless you spend time in Germany.

3. Rates for non-residents

Same progressive rates as residents — 14 % to 42 % (plus 45 % “Reichensteuer” above 277 826 € for 2025). Solidaritätszuschlag (5.5 % of income tax) still applies for most. Church tax (Kirchensteuer) does not apply to non-residents. Crucially, the Grundfreibetrag (tax-free threshold) does not apply — your first euro is taxed. Starting rate is around 15 % up to 17 005 €, climbing from there.

4. Double-taxation agreements (DBA)

Germany has DBAs with 90+ countries. For real estate, the near-universal rule (OECD Model Tax Convention, Article 6): the country where the property is located has primary taxing rights. Your home country credits the German tax paid against your domestic liability. Result: you pay the higher of the two rates, not the sum.

5. Which Finanzamt handles non-residents?

Non-residents file with the Finanzamt responsible for the location of the property (Finanzamt der Belegenheit). If you have properties in multiple Länder, file separate returns or coordinate via Finanzamt Neubrandenburg (the dedicated non-resident Finanzamt).

6. Deadlines and filing

Same as residents: 31 July of the following year. Extended to 2 September 2024 for tax year 2023 and 31 August 2026 for tax year 2025. You must file electronically via ELSTER (paper accepted only as exception). Anlage V is required for every property you let.

7. Common pitfalls

Forgetting Spekulationssteuer when selling within 10 years. Missing the Veranlagungsfrist after the Finanzamt sends the Bescheid (one month to object). Not keeping a Kontenübersicht of income and expenses in both German and your home-country currency. Anlage V Easy flags these automatically at Review.