No capital gains tax within Germany on sales of properties owned for 10 years or more!

(A capital gains tax of 25% is applied, if you sell after less than 10 years, subject to certain exclusions.)

Depreciation allowances (AfA).

Property owners in Germany can claim depreciation expenses (known as Abschreibung für Abnutzung or AfA) on their income tax returns. The depreciation allowance is typically calculated based on the age and type of the property. This deduction reduces taxable income, resulting in lower income tax liabilities.

Mortgage Interest Deduction

 If you have a mortgage on your German property, you can deduct the interest payments from your taxable rental income. This deduction can help reduce your overall tax burden.

Maintenance and Repair Expenses

. Expenses related to property maintenance, repairs, and renovations are generally deductible. These expenses can include costs for repairs, maintenance services, property management fees, and other related expenditures. Deducting these expenses lowers your taxable rental income.

Property Tax Deductions

Property owners can deduct property tax payments (known as Grundsteuer) from their taxable income. This deduction helps reduce the overall tax liability associated with property ownership.

Non-Resident Tax Treaty Benefits

 If you are a non-resident individual or a foreign investor from a country with a tax treaty with Germany, you may benefit from certain tax advantages. Tax treaties often address issues such as double taxation, tax exemptions, and reduced tax rates, depending on the specific treaty provisions.