Becoming a private landlord in Germany as a foreigner (2026)

Can a foreigner be a landlord in Germany? Yes — the law first

The load-bearing fact: Germany places no nationality or residency restriction on owning real estate or renting it out. EU citizens, non-EU expats, residents and non-residents alike can buy a flat and let it as a private landlord on the same terms as a German. There is no special permit and no citizenship requirement.

What comes with that right is a set of obligations that are identical to a German landlord's — German rental law and German tax law apply to the property, not to your passport. The two areas where expats most often slip are tax (because you may also be taxed where you live) and the formal duties every German landlord must meet. Both are manageable once you know them.

German tax always applies: beschränkte Steuerpflicht (§ 49 EStG)

Rental income from a German property is always taxable in Germany, wherever you live. If you are not resident in Germany, you have beschränkte Steuerpflicht (limited tax liability) under § 49 Abs. 1 Nr. 6 EStG: Germany taxes your German-source income, here the Einkünfte aus Vermietung und Verpachtung (income from renting, § 21 EStG).

You declare it on the Anlage V (rental income schedule) of a German tax return, and you are taxed on the surplus — rent minus Werbungskosten (income-related expenses, § 9 EStG) such as the AfA (building depreciation, § 7 EStG), loan interest and repairs — at the progressive Einkommensteuer rate (roughly 14 % to 45 %). Filing the form correctly is covered in our guides on taxing rental income and filling in the Anlage V.

	Resident landlord	Non-resident landlord
Tax liability	unbeschränkt (worldwide income)	beschränkt — German rental income only (§ 49 EStG)
Form	Anlage V	Anlage V
Grundfreibetrag (basic allowance)	yes	no, unless § 1 Abs. 3 EStG is elected
Double taxation	—	German property taxed in Germany (situs principle); your home country gives relief under the treaty

Most Doppelbesteuerungsabkommen (double-taxation treaties) follow the situs principle: the country where the property sits — Germany — has the taxing right, and your country of residence exempts or credits that income. So you generally pay German tax once, not twice, but you must still report it correctly on both sides.

VAT: residential rent is exempt (§ 4 Nr. 12 UStG)

The letting of residential property is exempt from Umsatzsteuer (VAT) under § 4 Nr. 12 UStG. You do not add VAT to the rent — and, as the flip side, you cannot reclaim the Vorsteuer (input VAT) on your costs such as renovations. This holds whether you live in Germany or abroad, so a private residential landlord does not deal with VAT at all.

Your duties are the same as a German landlord's

A foreign landlord must meet every duty a German landlord meets:

Duty	What it requires	Legal basis
Energieausweis	provide an energy certificate to prospective tenants before letting	§ 80 GEG
Kaution	hold the deposit (max 3 cold rents) separately and interest-bearing	§ 551 BGB
Nebenkostenabrechnung	issue the operating-cost statement within 12 months of the period's end	§ 556 Abs. 3 BGB
Wohnungsgeberbestätigung	confirm the tenant's move-in for their Anmeldung	§ 19 BMG
Mieterhöhung / Mietpreisbremse	respect the Kappungsgrenze and reference-rent limits	§ 558, § 556d BGB

Important: The Energieausweis is not optional. You must present a valid one to prospective tenants before letting; failing to do so is an Ordnungswidrigkeit that can be fined up to 15,000 euros (§ 108 GEG). See our guide on the Energieausweis-Pflicht.

Renting from abroad: bank account and Hausverwaltung

You do not have to live in Germany to be a landlord, but two things make it work smoothly:

• a German bank account, so rent comes in and Grundsteuer, insurance and tax payments go out without currency friction;
• a Hausverwaltung (property manager) for day-to-day matters — tenant contact, repairs, the Nebenkostenabrechnung — and a Steuerberater for the Anlage V.

You remain personally liable for your landlord duties even when a manager acts for you, so keep oversight of deadlines and the money. The Finanzamt responsible is the one where the property is located, not where you live.

Common mistakes

• Assuming "I live abroad, so I don't owe German tax." German rental income is taxed in Germany regardless of residence (§ 49 EStG).
• Expecting the Grundfreibetrag automatically. Non-residents are taxed from the first euro unless they elect § 1 Abs. 3 EStG.
• Letting without an Energieausweis. It must exist before you advertise; the fine reaches 15,000 euros.
• Mixing the Kaution with your own funds. It must be held separately and interest-bearing (§ 551 BGB).
• Missing the 12-month Nebenkostenabrechnung deadline. After it, you can no longer claim a Nachzahlung (§ 556 Abs. 3 BGB).

With HausMaus it's simpler

HausMaus runs the German-law part of being a landlord, which is exactly what is hard to do from abroad or in a second language. Rent is collected automatically into a dedicated virtual IBAN per flat, so you see the moment a payment posts; the Nebenkostenabrechnung is built from the WEG-Jahresabrechnung, split by Umlageschlüssel and produced as a § 556-compliant statement within the deadline; the Kaution and its § 551 return are tracked; and at year-end HausMaus generates an Anlage-V-ready tax export you can send straight to your Steuerberater. The §§ stay with HausMaus, whether you manage one flat or a portfolio.

See pricing – 1 % of collected rent, free for tenants →