Jointly Owned Rental Property in Germany: How to File an Additional Tax Declaration?
If you own a rental property in Germany together with another person, your tax obligations may be different from those of a sole owner.
Many property owners are surprised when, after filing their German income tax return, the tax office requests an additional declaration called the Declaration for the Separate and Uniform Determination of Tax Bases (Feststellungserklärung).
Although this is an additional tax return, it does not mean that your rental income is taxed twice. Its purpose is simply to determine the total rental income and expenses for the jointly owned property and allocate the correct share to each owner before their individual income tax is calculated.
At NeoTax, we regularly assist clients with this procedure and can prepare both the Feststellungserklärung and the individual German income tax returns.
Please note: Whether a Feststellungserklärung is required depends on the specific circumstances of your case and the requirements of the competent German tax office. If you own a German rental property together with another person, NeoTax will review your situation and advise whether this additional declaration is necessary.
