Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Germany tax professional before filing.
Germany · Short-term rental taxes
Short-Term Rental Taxes in Germany
STR income in Germany is taxed as either passive rental income (Einkünfte aus Vermietung und Verpachtung) or business income (Gewerbebetrieb) under the progressive personal income tax, with VAT and local tourist taxes (Kurtaxe/Citytax) potentially applying on top.
The 30-Second Answer
- Rental income (§21 EStG) is your default category — report gross rents minus allowable Werbungskosten (income-related expenses) on Anlage V of your annual income tax return.
- If you provide hotel-like services (breakfast, daily cleaning, concierge), the Finanzamt may reclassify your income as Gewerbebetrieb (business income), triggering Gewerbesteuer (trade tax) in addition to income tax.
- VAT (Umsatzsteuer) at 7% applies to short-term accommodation lets; hosts below the Kleinunternehmer threshold (€25,000 gross revenue in the prior year) can opt out of VAT collection.
- Many German cities levy a Kurtaxe or Citytax (tourist/city tax) per guest night — rates vary by municipality; platforms like Airbnb collect and remit this in some cities but not all.
Deductions
What German Hosts Can Deduct (Werbungskosten)
Allowable income-related expenses reduce your taxable rental surplus — keep every receipt and invoice.
Expenses must be proportionally split if the property is used partly for personal use. Only the rental-use share is deductible. Source: §21 EStG; ptireturns.com/blog/german-rental-property-deductible-expenses (2026).
Filing Calendar
Key Dates & Filing Calendar
Germany's tax year runs 1 January – 31 December; the standard filing deadline for self-prepared returns is 31 July of the following year.
Missing the filing deadline triggers automatic late-filing surcharges (Verspätungszuschlag) of up to 0.25% of assessed tax per month.
Airbnb Tax Guide Germany 2026 (assets.airbnb.com); Bundeszentralamt für Steuern – DAC7 reporting obligations.
Income Classification
Passive Rental Income vs. Business Income: Which Applies to You?
German tax law does not offer a simple flat-rate election for STR income. Instead, the Finanzamt classifies your STR activity based on the facts — passive rental or active business — each with different tax consequences.
Passive Rental Income (§21 EStG)
Einkünfte aus Vermietung und Verpachtung
- Report on Anlage V of your Einkommensteuererklärung
- Deduct all Werbungskosten (AfA, interest, repairs, insurance, management fees) against gross rent
- No Gewerbesteuer (trade tax) applies
- VAT exemption possible under Kleinunternehmer rule if prior-year revenue ≤ €25,000
No income ceiling — taxed at your personal progressive rate (14%–45%)
Business Income (§15 EStG)
Einkünfte aus Gewerbebetrieb
- Report on Anlage G; must register a Gewerbe (trade) with the local Gewerbeamt
- Gewerbesteuer rate varies by municipality (Hebesatz); effective rate typically 7%–17% on top of income tax
- Gewerbesteuer partially offsets income tax liability via §35 EStG credit
- Full expense deductions still apply; VAT registration generally required
No income ceiling — income tax plus Gewerbesteuer (trade tax) applies
Depreciation
AfA — Absetzung für Abnutzung (Depreciation) for German Rental Properties
Germany allows straight-line depreciation (lineare AfA) on the building element of your rental property — land is not depreciable.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Residential building (built after 1924) | 50 years (2% p.a.) | Standard AfA rate under §7(4) EStG for buildings used for rental income |
| Residential building (built before 1925) | 40 years (2.5% p.a.) | Higher rate applies to older buildings under §7(4) EStG |
| Furniture & fittings (Einrichtung) | Typically 10–13 years | Movable assets depreciated separately per AfA tables (AfA-Tabellen); items ≤ €800 net may be expensed immediately as GWG |
| New residential buildings (built from 2023) | 33 years (3% p.a.) | Increased AfA rate introduced by Jahressteuergesetz 2022 for new builds from 1 Jan 2023 |
Only the building value (not land) is depreciable. Depreciation begins once the property is ready for rental. Source: §7(4) EStG; ptireturns.com (2026).
Germany does not have a formal depreciation recapture tax on sale of private rental property held for more than 10 years — gains on private property sold after the 10-year Spekulationsfrist are generally tax-free. Sales within 10 years trigger Spekulationssteuer (private sale gain taxed at your marginal income tax rate).
Kurtaxe / Citytax
German Tourist & City Taxes (Kurtaxe / Citytax / Übernachtungsteuer)
Many German cities and spa resorts levy a per-night guest tax. Rates and names vary significantly by municipality — there is no single national tourist tax rate.
Tourist taxes in Germany are set at the municipal level. Major cities like Berlin, Hamburg, Munich, Frankfurt and Cologne all have their own schemes. Hosts are typically responsible for collecting and remitting these taxes unless the booking platform does so on their behalf.
Varies by city — check your local Gemeinde or Finanzamt
Berlin Senate Department for Finance (berlin.de); Hamburg Finanzbehörde; Airbnb Tax Guide Germany 2026.
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Airbnb bookings in cities where Airbnb has a collection agreement (e.g. Berlin) | Airbnb collects from guest and remits to the city | You do not need to separately collect or remit; confirm with your city whether an agreement is in place |
| Direct bookings or platforms without a collection agreement | Host collects from guest and remits to the Gemeinde | You must register with the local tax office, issue receipts, and file periodic returns |
| Kurtaxe in spa/resort municipalities (Kurorte) | Host collects per guest per night and remits to the Kuramt | Separate registration with the Kuramt required; guest lists may need to be submitted |
Tourist tax rules change frequently. Always verify current rates and collection obligations directly with your Gemeinde (municipality) or Finanzamt before hosting.
Platforms
How Booking Platforms Handle German Tax Reporting
Under EU DAC7 rules, platforms operating in Germany must report host earnings annually to the Bundeszentralamt für Steuern — assume your income is visible to the tax authority.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Yes — DAC7 report to Bundeszentralamt für Steuern | Yes, in cities with a collection agreement (e.g. Berlin); No in others | Annual earnings summary available in host dashboard |
| Booking.com | Yes — DAC7 report to Bundeszentralamt für Steuern | Varies by city and property setup — check your extranet settings | Annual earnings summary available in partner portal |
| VRBO / HomeAway | Yes — DAC7 report to Bundeszentralamt für Steuern | Generally No — host responsible for local tourist tax | Annual earnings summary available in owner dashboard |
Using Multiple Platforms?
Each platform reports independently to the Bundeszentralamt für Steuern. You must aggregate all platform income yourself and report the total on your Anlage V. The Finanzamt can cross-reference all reported figures — ensure your declared income matches the sum of all platform reports.
DAC7 — EU Platform Reporting Directive
Since 1 January 2023, all digital platforms operating in the EU must collect and report seller/host data to national tax authorities under DAC7 (EU Directive 2021/514, implemented in Germany via Plattformen-Steuertransparenzgesetz – PStTG). Reports cover name, address, tax ID, and annual earnings. The Bundeszentralamt für Steuern then shares data with other EU member states where relevant.
Airbnb Tax Guide Germany 2026 (assets.airbnb.com/help/Airbnb_TaxGuide2026_Germany_ENGLISH.pdf); Bundeszentralamt für Steuern – PStTG (bzst.de).
Illustrative P&L: Passive Rental Route
Example for a host earning €18,000/year in STR revenue with typical expenses — for illustration only, not tax advice.
Record-Keeping
Stay Audit-Ready: What to Keep and for How Long
German tax law requires landlords to retain supporting documents so the Finanzamt can verify your declared income and deductions.
| Keep | How long | Why |
|---|---|---|
| Booking records, guest invoices, platform payout statements | 10 years | Proves gross rental income declared on Anlage V; DAC7 cross-reference risk |
| Receipts for repairs, maintenance, cleaning, insurance, utilities | 10 years | Substantiates Werbungskosten deductions against Finanzamt queries |
| Purchase contract, notarial deed, building cost breakdown (for AfA) | Lifetime of ownership + 10 years | Required to calculate and defend AfA depreciation basis |
| Tourist tax (Kurtaxe/Citytax) remittance receipts | 10 years | Demonstrates compliance with municipal tourist tax obligations |
Germany's general tax record-retention period is 10 years for accounting records (§147 AO). Keep digital copies in addition to originals — the Finanzamt may request documents years after filing.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
This page is for educational purposes only and does not constitute tax advice. German tax law is complex and highly fact-specific. Always consult a qualified Steuerberater (tax adviser) for your individual situation. Rates and rules may change — verify with official sources before filing.
- Airbnb Tax Guide Germany 2026 (Airbnb / PwC) — assets.airbnb.com/help/Airbnb_TaxGuide2026_Germany_ENGLISH.pdf — covers income tax, VAT, and DAC7 for German STR hosts
- §21 Einkommensteuergesetz (EStG) — Rental & Leasing Income — gesetze-im-internet.de — statutory basis for passive rental income classification and Werbungskosten deductions
- ptireturns.com — German Rental Property Deductible Expenses (2026) — Detailed breakdown of allowable Werbungskosten for German landlords including AfA, interest, repairs
- germantaxes.de — How Rental Income is Taxed — Overview of §21 EStG rental income rules, surplus income concept, and Anlage V filing
- visitor.de — Tax Reliefs for Landlords in Germany (2024) — Covers AfA depreciation, advertising costs, and occasional rental tax relief for German holiday home owners
- Bundeszentralamt für Steuern — PStTG (DAC7 implementation) — bzst.de — Germany's implementation of EU DAC7 platform reporting directive (Plattformen-Steuertransparenzgesetz)
Questions
Frequently Asked Questions: STR Taxes in Germany
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