If it is a holiday flat, please select "yes", as additional information must be entered in this case.

This refers to the short-term provision of accommodation to guests for a fee, usually for holiday purposes.

If the rental of your property also includes short-term rentals via platforms such as Airbnb, then select "yes".

Possible platforms for short-term rentals:

• Airbnb
• Booking.com
• HomeAway
• Expedia
• FeWo-direct
• TripAdvisor
• Wimdu
• Holidu

The result of the spaces rented out as holiday flats is automatically displayed here. The actual entries can be entered on the subpage.

The result of the short-term rented spaces (e.g. via Airbnb) is automatically displayed here. The actual entries can be entered on the subpage.

Sum of the living and usable space entered on this page.

Enter here the space allocated to owner-occupied usable space.

Specify whether the property was rented to relatives in whole or in part.

Who is considered to be a relative?

According to sect. 15 of the Fiscal Code (AO), the following persons are considered relatives:

• Spouses or life partners
• Direct relatives by birth or marriage, for example, parents, grandparents, children and grandchildren
• Siblings
• Nieces and nephews
• Spouses or life partners of the siblings
• Sisters-in-law and brothers-in-law
• Uncles and aunts
• Fiancée
• Persons with a special close relationship, for example, long-term life partners with personal and economic ties

Tax audit in the case of rental to relatives

The tax office checks rentals to relatives particularly to ensure that the rental conditions are not unreasonable. The following rules apply:

1. Rent at least 66% of the local market rent:
   The rental is considered to be on a full-pay basis. Income-related expenses can be deducted in full.
2. Rent below 66% but above 50% of the market rent:
   The rental is considered a reduced-rate lease. A share of the income-related expenses is deductible. In addition, a total profit forecast is required.
   Positive result: Full deduction of income-related expenses.
   Negative result: Only a proportion of income-related expenses deductible.
3. Rent below 50% of the market rent:
   The rental is divided into a paid and a free part. Income-related expenses are only deductible for the paid part.

This field displays the total space (in square meters) used for rental purposes. This includes all rented out residential and usable space in the property, such as living rooms, cellars, storage rooms, and garages that contribute to the income from rental and lease.

Enter here the living space that is allotted to living space that is rented out permanently and for a fee.

If the living space

• occupied by the owner,
• given to a third party free of charge,
• rented out to relatives or
• used as a holiday home,

enter "0.00" here.

Enter here the space allocated to the commercially used space.

This includes, among other things, space for

• commercial premises
• offices
• business premises,
• production spaces,
• medical practices.

Specify whether the property was used as a holiday home.

Enter here the living space that is allocated to living space used as a holiday home.

Indicate whether you have rented part of the property or all the property to relatives free of charge.

The tax office examines renting to relatives in detail.

Previously applied: 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, this is considered to be a discounted or partially discounted transfer. In this case, the tax office only recognises the income-related expenses on a proportional basis, i.e. in the ratio between the actual rent and the standard local rent.

As of 1 January 2021, there is an important change:

• If the agreed rent is at least 66% of the local market rent, the expenses are fully deductible as income-related expenses.
• If the agreed rent is between 50% and 66% of the market rent, the intention to generate income must be examined and an income prediction is required for this purpose:
• If the income prediction is positive, the income-related expenses are fully deductible.
• If the income prediction is negative, the income-related expenses are to be divided and only deductible proportionally.
• If the agreed rent is less than 50% of the local market rent, the transfer of use is to be divided into a paid and a free part. The expenses are only deductible as income-related expenses in proportion to the paid part.

Important: If the rent is at least 50 percent but less than 66 percent of the local rent, a total profit prediction test (Totalüberschussprognoseprüfung) must be carried out:

If this examination of the total profit prediction is positive, the intention to generate income is to be assumed with respect to the discounted renting of the living space and the full deduction of income-related expenses is possible.

If, on the other hand, the total profit prediction test leads to a negative result, an intention to earn income is only to be considered for the part which is rented out for payment. The income-related expenses may be deducted proportionately for the part rented out for payment.

The total profit prediction test for income from renting and leasing is carried out according to long-standing and consolidated Federal Fiscal Court (Bundesfinanzhof, BFH) case law. The Federal Ministry of Finance (BMF) letter of 8 October 2004 (BStBl 2004 I p. 933) is still relevant.

Please specify whether the property was partially owner-occupied or rented out free of charge.

What does "use for own purposes" mean?

If you or your family have lived in the property or part of it, it is considered to be "partially used by the owner". You cannot earn any income from the owner-occupied part and therefore cannot deduct any income-related expenses.

Example: You live on the first floor of your property, while the upper floor is rented out.

What does free of charge rental mean?

If you make the property (or part of it) available to other persons without charging rent, it is considered to be "rented out free of charge". As a rule, no income-related expenses can be claimed for parts that are rented out free of charge.

Example: You provide your children with a flat in the house without charging rent.

Enter here the living space that is allocated to owner-occupied residential space.

Specify whether the apartment was let out on a short-term basis e.g. via internet platforms such as Airbnb, Wimdu or 9flats.com.

Important: Even those who rent the rooms of their self-used flat or house to third parties regularly earn income from rental and leasing according to section 21 Income Tax act (EStG) (BFH judgement of 4.3.2008, Ref. IX R 11/07)