Field help:
(2020)
Rental income from relatives
Renting to relatives is subject to special examination by the tax office.
If the rental income is at least 66% of the local rent (incl. allocations), the transfer is fully paid and the income-related expenses are generally recognised in full by the tax office.
If, on the other hand, the actual rent is less than 66% of the usual local rent, it is a case of transfer at a discount or partial payment. In this case, the tax office only recognises the income-related expenses on a proportional basis, which means in the proportion between the actual rent and the standard local rent.
