Our corporate customers require an invoice from you as the landlord for any deduction of operating expenses.
The following explanations, however, do not constitute tax advice and are therefore given without guarantee:
Private persons who act as landlords in Germany are generally not commercially active but earn income from letting and leasing, which is subject to income tax. Nevertheless, they are entrepreneurs within the meaning of the Value Added Tax Act. The short-term letting (up to 6 months) of real estate is subject to the reduced VAT rate of currently 7%. If the turnovers in the calendar year do not amount to more than 17,500 €, the landlord can take the so-called small entrepreneur regulation up to and does not need then a value-added tax to compute. Longer-term rentals are exempt from VAT.