UK rental income on German tax returns (post-Brexit)

172 posts in this topic

The only thing I can add from excellent advice that I received…..

 

Use the ECB reference exchange rate on the exact date that your mortgage company paid for the property. See here (enter date range)…..

 

https://www.ecb.europa.eu/stats/policy_and_exchange_rates/euro_reference_exchange_rates/html/eurofxref-graph-gbp.en.html

 

The difference between the highest and lowest rate for October 2003 is nearly €8000.

 

I think it’s acceptable to use these monthly average rates for ongoing income/deduction calculations. 
https://www.bundesfinanzministerium.de/Web/DE/Service/Publikationen/Umsatzsteuer_Umrechnungskurse/umsatzsteuer_umrechnungskurse.html

 

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3 hours ago, emkay said:

The only thing I can add from excellent advice that I received…..

 

Use the ECB reference exchange rate on the exact date that your mortgage company paid for the property. See here (enter date range)…..

 

https://www.ecb.europa.eu/stats/policy_and_exchange_rates/euro_reference_exchange_rates/html/eurofxref-graph-gbp.en.html

 

The difference between the highest and lowest rate for October 2003 is nearly €8000.

 

I think it’s acceptable to use these monthly average rates for ongoing income/deduction calculations. 
https://www.bundesfinanzministerium.de/Web/DE/Service/Publikationen/Umsatzsteuer_Umrechnungskurse/umsatzsteuer_umrechnungskurse.html

 

 

Cool, thanks for the advice, I will do just that.

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Hi everyone,

 

so I have prepared everything, am I correct in thinking that I cannot upload PDF's in Wiso? I can't find anywhere to do it.

 

Looks like I have send the documents by post?

 

Thanks

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Assuming Krankenkasse payments are paid on UK rental income, is the rental income profit declared before or after the KK payment?

I have read back but may have missed it.

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You declare the gross rental profit in Anlage AUS of your tax return, i.e. the amount before public health insurance and before UK income tax.

 

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On 23/01/2022, 14:44:00, PandaMunich said:

According to German tax law (§23 (1) Nr. 1 EStG), if you sell real estate that you have owned for more than 10 years (and since it was gifted to you, you were also gifted your granny's/parents' "old" purchase date, so the 10 years are up for you for sure), the profit is not taxable.

--> The profit from selling your UK real estate will not appear in your German tax return at all, not even as the "lesser evil" of income subject to Progressionsvorbehalt in Anlage AUS line 36 (which is where your UK rental profit has to be declared).

 

And if you purchased the property and rented it out for >10 years, the same or is this only if it was gifted?

You pay capital gains in the UK only and not additionally something in Germany?

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1 hour ago, scook17 said:

And if you purchased the property and rented it out for >10 years, the same or is this only if it was gifted?

You pay capital gains in the UK only and not additionally something in Germany?

Yes, it's the same.

Yes.

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Here again on UK rental profit in my German tax declaration...

 

I understand there are TWO options, either/or:

1) only Anlage V 

2) both Anlage V and Anlage AUS

 

quoting our beloved @PandaMunich

The first option is all that is needed, but will lead to the Finanzamt asking you for the calculation, to check that you really did it according to German rules, i.e. according to the method of Anlage V.

The second option shows the Finanzamt that you did the calculation "correctly", i.e. to German rules, so no extra questions from them, but carries the risk that if you get a clueless caseworker, that they may be tempted to tax the UK rental profit directly and not only put it under Progressionsvorbehalt.

 

is either of these two options recommended?

If I opt for option 1), only Anlage V, should I add a pdf explaining how I did my calculation at the time of submission? Or only if/when they request it?

If I opt for option 2), both Anlage V and AUS, I presume Anlage V will of course "think" the let property is located in Germany, asking therefore German-specific question, like in which Bundesland is it located etc etc that are either impossible, or difficult, to answer for a rental address located outside Germany... or am I wrong?

 

Thank you,

 

Alberto

 

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58 minutes ago, Gambatte said:

 

is either of these two options recommended?

If I opt for option 1), only Anlage V, should I add a pdf explaining how I did my calculation at the time of submission? Or only if/when they request it?

If I opt for option 2), both Anlage V and AUS, I presume Anlage V will of course "think" the let property is located in Germany, asking therefore German-specific question, like in which Bundesland is it located etc etc that are either impossible, or difficult, to answer for a rental address located outside Germany... or am I wrong?

Go with option 3

Do the calculation in Excel, using the headings from Anlage V, and fill in just the end result into Anlage AUS, line 36.

If they ask for the UK rental income calculation, do a Belegnachreichung in Elster and attach a pdf print-out of your Excel calculation (they only accept pdf attachments).

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Sounds good, thanks.

 

Not yet familiar with "Belegnachreichung". are you saying I add this pdf-Excel-calculations only if/when they ask it, right? 

I hope they don't ask it, it's really not fun having to care about this torture. 😭😟😑

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Yes, you only send it after they ask for it.

If they want it, they will send you a letter and ask for it in there, giving you the option to answer either electronically in ELSTER or with a print-out of your calculation on paper by snail mail.

 

 

 

 

 

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