Buy-to-let properties for the self-employed: what the bank wants to see

Romolo Marini · 2026-10-13

Can I, as a self-employed person, finance a let apartment at all? Yes. Banks generally like vermietete Immobilien (let properties) because they bring an additional, independent income.

However, the "how" is different. While an employee shows three salary slips, you have to prove that your business model works long-term. And the tax calculation is more important than for an employee because you carry your tax burden alone.

Here we show what documents the bank needs, how it calculates your income and what a let apartment brings in terms of tax for the self-employed.

01What the bank wants to see: documents and periods

The bank's main problem with the self-employed is the predictability of income. An employment contract can be terminated, but a profit can drop to zero overnight. Therefore, banks rely on the past.

• Standard: three years. Most banks only finance if you have been on the market for three full years. They want the Einnahmen-Überschuss-Rechnungen (EÜR) or annual financial statements for these years.
• Exception: two years. If your business is growing and you have enough equity (usually 20 to 30%), some banks will finance after two years.
• Under one year: A financing for a property as an investment is almost impossible here.

02How the bank calculates your income

The bank does not take your last profit 1:1. It wants to know what is "sustainably" available.

1. Average value: Usually, the bank takes the average of the profits of the last three years.
2. Downward trend: If the profit last year was lower than the year before, the bank often only takes the last, lower value.
3. Upward trend: A sudden jump in profit is often not fully recognised, but capped at a lower value.
4. Flat-rate deductions: The bank deducts income tax and, if not already in the EÜR, costs for health and pension insurance.

What remains is your "free household income". From this, you must be able to afford your life and the extra payment for the apartment.

03Tax: The advantage of the self-employed

As a self-employed person, you pay your Einkommensteuer (income tax) as advance payments. A let apartment generates losses in the first few years, especially through interest and depreciation (AfA). These losses reduce your total income and thus your tax.

With Sarah's income, every euro of loss from the apartment saves her about 42 cents in tax. The apartment "costs" her €460 per month before tax, but after tax the burden drops by about €175 per month.

04Special features for the self-employed

1. Equity is key

While employees can sometimes finance 100% of the purchase price (plus incidental costs from their own funds), banks often demand more from the self-employed. Plan to contribute 20 to 30% of the purchase price yourself. This lowers the bank's risk and your interest rate.

2. Business and private separation

Finance the apartment as a private person, not through your company (unless you specifically want a vermögensverwaltende GmbH, which is a separate topic). This makes the tax handling easier and keeps the property out of the business liability.

3. Retirement provision

For many self-employed people, a let apartment is a substitute for the statutory pension. Advantage: The rent is an inflation-protected income. Disadvantage: You have to take care of maintenance and tenants yourself. A property management can take over this work for you.

05Risks and typical mistakes

• Mixing business and private: If you pay the loan from the business account, it must be correctly booked as a private withdrawal. It's better to have a separate account for the apartment.
• Overestimating the tax effect: The tax saving only comes if you actually have a profit. In a bad business year, the tax advantage also drops.
• Missing liquidity: The extra payment for the apartment must also be possible if the business is not doing so well for three months.

06Read more

• Taxing rental income
• Property financing: tips for the best conditions
• Wealth-managing GmbH (vvGmbH)
• Advertising expenses (Werbungskosten)

07Sources

All sources accessed on 13/10/2026.

• § 21 EStG (Income from letting and leasing)
• § 9 EStG (Advertising expenses)
• Income tax tariff 2026 according to the current draft of the tax development law (Steuerfortentwicklungsgesetz).
• General lending guidelines of German credit institutions for the self-employed.

Note: This guide provides general information and does not replace legal or tax advice. All figures are example calculations with disclosed assumptions, status 13/10/2026.