Our corporate customers require an invoice from you, the landlord, for potential business expenses allowances.
The following should be considered when issuing an invoice:
Private individuals acting 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 still considered to be traders within the meaning of the Turnover Tax Act. Short-term property letting, (up to 6 months), is subject to a reduced VAT rate, currently 7%. If turnover does not exceed €17,500 in a given calendar year, the landlord can apply the so-called "small business regulation", and is not required to charge VAT. Longer-term rentals are exempt from VAT.
The information provided here is intended solely as a guideline and does not constitute legal advice. No responsibility is taken for the accuracy of this information.