Wage tax reduction for rentals

Wage tax reduction explained: allowance for rental losses under Section 39a EStG, when it applies, example, and mandatory tax filing.

FAQ

Do I have to apply every year?

The allowance is valid for a maximum of two calendar years. If figures change, you submit a new application.

Does the €600 limit apply to rental losses?

The threshold in Section 39a (2) EStG applies to expenses, but rental losses are often significant enough to surpass it via interest and depreciation.