|Taxable Income Euro||Tax Rate|
|Euro 0 to 9,000||0%|
|Euro 9,001 to 54,949||14%|
|Euro 54,950 to 2,60,532||42%|
|Over Euro 2,60,533||45%|
Tax on Rental Income in Germany
Rental Income from Germany modern design houses is taxed at progressive rates. Owners can deduct any expenses from the gross receipts, which were incurred to produce, maintain and safeguard that income.
Depreciation is generally set at 2% for existing houses, for newly built houses
at 3% for the first eight years.
Investments done for maintenance of the property cannot be deducted in the year when they were done if they exceed 15% of the purchase price. They have to be added to the depreciable value of the property instead.
If the individuals meet either of the following conditions, they are subject to tax in Germany:
- They have a domicile in Germany for their personal use.
- They have a "customary place of abode" in Germany. This means that they are present in Germany for an uninterrupted period of 6 months that may fall in 2 calendar years.
The citizenship of a taxpayer usually is not a consideration in determining residency. However, under the provisions of certain tax treaties entered into by Germany, citizenship may be one of the factors to consider if an expat taxpayer qualifies as a resident under the domestic laws of both Germany and the other treaty country.
A tax is imposed on transfers of property at death or by gift. Decedents and donors are considered transferors, and beneficiaries and donees are considered transferees.
Expat tax rules state that transfers of worldwide net property are taxable if either the transferor or the transferee is resident in Germany at the time of the decedent's death or at the date of the gift. If neither the transferor nor the transferee is resident in Germany, the tax applies only to transfers of property located in Germany.
- 15% Tax on Corporate entities on the disposal of real estate situated in Germany
- Individuals are taxed on the disposal of real estate in Germany, if the holding period is less than 10 years
- Tax rate for individual is individual income tax rate
- 15% Standard Corporate Income Tax Rate
- 0825% solidarity surcharge (i.e. 5.5% on corporate tax 15%)
- 7% to 21% Local trade tax