(2023)
Do I have to declare rental income from AirBnB and similar platforms?
If you rent out individual rooms in your owner-occupied, owned or rented flat, you generally earn income from renting and leasing, which must be declared in the tax return.
Taxes are due on income from rentals via online platforms
- if the rental income exceeds the allowance of 520 Euro.
- if the total income is higher than the basic allowance.
- if the subletting is operated commercially.
Allowance of 520 Euro per year
For simplification, rental income of less than 520 Euro per assessment period may remain untaxed (R 21.2 para. 1 EStR). However, the amount of 520 Euro is not a tax-free amount but an allowance, i.e. if your rental income exceeds this amount by just one Euro, you must declare and tax the entire income in the tax return.
If income from subletting is concealed or no tax return is submitted, this is considered tax evasion. Tax offences can be prosecuted retroactively for up to 10 years.
Attention: The Hamburg tax authority currently points out that rental portals must provide the tax authorities with data on landlords.
Basic tax allowance
If the total income from all types of income is below the basic allowance, no taxes need to be paid. 2023 the basic allowance is 10,908 Euro for single persons and 21,816 Euro for married couples.
Commercial rental
Income from renting and leasing is subject to business tax if, in addition to pure rental, unusual special services are provided. These unusual special services include, among others, staff, a breakfast offer or daily room service. Room cleaning or the provision of bed linen and towels are not considered special services. In this case, you would have to declare the income from your rental activity in Annex G.
If income from subletting is concealed or no tax return is submitted, this is considered tax evasion. Tax offences can be prosecuted retroactively for up to 10 years.
Sale of owner-occupied property
A capital gain remains tax-free if the property was used continuously and exclusively for own residential purposes (Alternative 1) or in the year of sale and the two previous years (Alternative 2). Renting excludes use for own residential purposes, unless it is only temporary renting of individual rooms. The Federal Fiscal Court has ruled that in the case of daily rental, rooms that are part of the sale are taxable (BFH ruling of 19.7.2022, IX R 20/21).
Example: A married couple rents out individual rooms in their owner-occupied terraced house on a daily basis to trade fair guests and sells the property at a profit. The tax office determines income according to § 23 EStG due to the rental of individual rooms, which the Federal Fiscal Court confirms. The ratio of living areas is used to calculate the proportionately taxable capital gain.
Exception: In the case of temporary rental of the entire flat, the capital gain is fully taxable, unless Alternative 2 is met.
