Vacancy and rental intent on German Anlage V

1. Vacancy is a proof problem

A flat can be empty for normal reasons: tenant change, renovation, delayed handover, weak demand or listing time. The tax question is whether the property was still held to earn rental income. If the Finanzamt sees no rent for months, it may ask whether the property was actually private, held for sale, or no longer rented with income intent.

2. What rental intent means

Rental intent means you actively tried to rent the property on market terms. It is easier to prove with external evidence than with a statement written after the fact. Dated listings, correspondence with prospective tenants, an agent mandate, rent-adjustment records and repair invoices before relisting all show that the vacancy was part of a rental process.

3. Which costs can remain deductible

If the property remains a rental property, ongoing Werbungskosten can generally stay connected to §21 EStG income: mortgage interest, AfA, Grundsteuer, building insurance, property management, utilities borne by the landlord and reasonable advertising costs. You do not deduct lost rent. German tax works on actual income and actual expenses, not on rent you hoped to receive.

4. Evidence checklist for foreign landlords

Foreign owners should keep a vacancy file because they cannot easily reconstruct German listing activity later. Save screenshots with dates, portal invoices, emails with agents, viewing notes, rejected applications, repair schedules and handover documents. If you lower the asking rent after several weeks, keep the change history. It supports the claim that you were reacting to the market.

• Rental ads with publication dates
• Agent mandate or correspondence
• Viewing records and applicant emails
• Repair invoices before relisting
• Bank records for ongoing costs

5. When vacancy becomes risky

Risk rises when the property is empty for a long period without advertising, blocked for personal use, listed at an unrealistic rent, held mainly for sale, or unavailable because of major private renovation choices. If a family member uses the flat, or if you stop answering rental inquiries, the Finanzamt may deny part of the expenses.

6. Example: three empty months between tenants

A tenant leaves on 31 March. You repair flooring in April, list the flat on 20 April, host viewings in May and sign a new lease from 1 July. You report rent received from January to March and July to December. You keep ongoing costs for the full year because the April-June gap was documented rental vacancy, not private use.