If you have received Airbnb rental income that was not included in your German tax returns, the position should be reviewed promptly. A platform report does not replace your tax return. Submitting missing figures or making a payment does not, by itself, guarantee immunity from criminal proceedings.
How is rental income treated?
Privately letting a flat or room will often fall within rental income under section 21 of the German Income Tax Act. The actual arrangements and the nature of the activity matter. Receiving bookings through a platform does not determine the income classification on its own.
Platform payouts are not necessarily the same as taxable income. Rental receipts, additional charges, platform fees and deductible costs need to be reconciled. Private use and rental use may require costs to be apportioned. Cross-border circumstances require a separate review of tax residence and any applicable tax treaty.
Does short-term letting attract VAT?
VAT and income tax are separate questions. Short-term accommodation is excluded from the general property-letting exemption under section 4 no. 12 of the German VAT Act. The small-business exemption in section 19 may apply if its requirements are met.
Since 2025, the standard domestic turnover limits are EUR 25,000 for the preceding calendar year and EUR 100,000 for the current calendar year. Official application guidance uses a EUR 25,000 threshold in the year the business starts. Other business activities may also need to be considered. Do not assess VAT solely by looking at the payouts for one property.
What information do platforms report?
German DAC7 rules provide for reporting of certain supplier and payment information by platform operators. Property rentals may be covered. The Federal Central Tax Office explains the reporting system. Reported remuneration is not a final assessment of taxable profit, but it can lead to questions from the tax authorities.
What should you do after receiving a tax-office letter?
- Identify the authority, the years concerned, any reference number and every deadline.
- Check whether the letter mentions criminal or administrative-offence proceedings.
- Gather platform statements, booking records, bank statements, expense records and previous returns.
- Review the complete facts and the procedural position before responding.
Can a correction prevent criminal proceedings?
A duty to correct a return may arise under section 153 of the Fiscal Code. A voluntary disclosure under section 371 has additional requirements, including completeness, the absence of statutory blocking grounds and compliance with payment requirements. Known investigations or discovery of the offence may be relevant. Immunity cannot be promised without reviewing the facts.
How I can help
I advise on the German tax treatment of rental income and on correcting previous returns. Where proceedings are involved, I consider the tax and criminal-law issues together. Appointments are available in Berlin, Munich and online. Please mention existing deadlines when making contact.
Further information in German: tax-law advice, tax criminal-law representation and the German article on undeclared Airbnb income.
Legal sources
The relevant German provisions and official reporting information are linked above. This article provides general information; the treatment of an individual case depends on its facts.