Declaring "revenues" from a rent from a flat abroad

3 posts in this topic

Hello dear community,

 

it looks like that soon I will be for the first time owner of a small flat in France \o/

 

My question is: if I decide to rent it (the monthly amount will entirely be used to pay back loan taken from a French bank), do I need to declare the rent money (which would prob end up to my French bank account) here in Germany? If so: how and when? I'm wondering if this revenue should be declared then taxed in France or Germany basically.

 

A bit more context: I have a full time job here in Germany and 0 other income in France.

 

I guess the topic is quite complex so maybe it is easier to go and seek advice from a Finanzamt? Maybe someone here has a good experience with a specific one in Berlin with English speakers? Any suggestions welcome.

 

Vielen Danke.

 

 

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The answer is very simple: since France is in the EU and since the double taxation agreement has a progression clause (= Freistellungsklausel), you don't mention the French rental profit/loss at all in your German tax return.

You do however have to do a French tax return, in which you declare it.

 

For details, please read:

the relevant articles for France are articles 3 and 20 of the double taxation agreement between Germany and France: https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Steuern/Internationales_Steuerrecht/Staatenbezogene_Informationen/Laender_A_Z/Frankreich/1961-04-22-Frankreich-Abkommen-DBA-Gesetz.pdf?__blob=publicationFile&v=3

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@PandaMunich this is an amazing, clear and detailed answer! Thank you very much! Hope this topic will be helpful for others.

 

Thank you again and have a great day!

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