German Property Investment and Tax

[singinvestor]

I am looking to purchase a residentail investment property in Germany. I am aware of the various costs in purchasing the property but am unsure as to the tax implications of renting out the property. Assuming a rental return of €500 per month, does anyone know how much tax needs to be paid on this per year? I will be an Irish tax resident for the forseeable future. Also is there an additional property tax due on the overall value of the property.

Thanks.

 

[dontaskme]

Also is there an additional property tax due on the overall value of the property.

Thanks.

Not an expert on this, but there is a charge called hausgeld (house money) that covers utilities, waste disposal, maintenance, repairs etc. If you have a tenant you can pass on some of these charges to him - when renting in Germany there is the cold rent (kaltmiete) and then the supplementary cost (nebenkosten) and the nebenkosten include the heating, electricity, waste disposal etc. But even if you don't have a tenant you will have to pay the hausgeld.

For a two room apartment it could typically be 140 per month.

 

[dontaskme]

In today's FT.com [broken link removed]
Berlin has been denied a state bail-out so it is possible that rates in the city for utilities etc. might increase going forward