More and more people, especially entrepreneurs and wealthy individuals, are playing with the idea of emigrating to Dubai. Because the city is not only a tax haven, but also convinces with the best weather and a high level of personal security. But what happens to a property occupied in Germany when the owner emigrates to Dubai?
Principle 1: Taxation of income from real estate under German law
Anyone who leases real estate will in principle earn income from renting and leasing in private assets according to § 21 (1) no. 1 EStG. Taxable is the surplus of revenue over advertising costs, which can also be negative. In this case, losses arise from the rental.
First of all, the income (§ 8 EStG) must therefore be determined when renting real estate. They include, for example, the following items:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.