Do I also need to complete Anlage V for Spanish rental income?

Anlage V is the German supplementary schedule for income from Vermietung und Verpachtung (rental and leasing). For domestic German rental properties, Anlage V is the correct form. For Spanish rental income, some Finanzamt offices expect Anlage V alongside Anlage AUS to detail the income and expense calculation, while others treat Anlage AUS as sufficient for foreign property. Check with your Steuerberater or your local Finanzamt which combination they require for your specific return.

What is the Progressionsvorbehalt and why does it affect German owners of Spanish property?

Progressionsvorbehalt is a German tax concept under which foreign income that is exempt from German tax under a DTA is nonetheless added to your German income solely to calculate the applicable marginal tax rate. Your Spanish rental income is not itself taxed in Germany under the exemption method, but it inflates the rate applied to your other German taxable income. For German owners receiving both German salary and Spanish rental income, this can push their effective German tax rate on salary income to a higher band.

Do German buyers pay more to purchase property in Spain than other nationalities?

No. Purchase taxes and costs are the same for all foreign buyers regardless of nationality. Germans are subject to the same ITP (transfer tax for resale properties), IVA (VAT at 10% for new builds), notary costs, registry fees, and legal fees as British, American, or any other non-Spanish buyer. Germans accounted for 6.52% of all foreign property purchases in Spain according to Notaries data, making them one of the largest buyer groups, and they benefit from the same purchase process as other foreigners.

Germany Spain Holiday Home Tax: Complete 2026 Guide

Q: Do German residents pay NRIT on a Spanish holiday home?

Yes. Any non-resident owner of Spanish property is subject to Spanish Non-Resident Income Tax (NRIT, or IRNR in Spanish). German residents, as EU and EEA taxpayers, pay at 19% on net rental income after deducting allowable expenses such as mortgage interest, IBI, community fees, insurance, and depreciation. If the property is not rented out and is kept for personal use, Spain still charges an imputed income tax at the same 19% rate on a base of 1.1% or 2% of the cadastral value.

Q: How does the Doppelbesteuerungsabkommen between Germany and Spain work?

The double taxation agreement (DTA) between Germany and Spain, known as the Doppelbesteuerungsabkommen (DBA), allocates the primary right to tax rental income from Spanish property to Spain. Germany then taxes the same income as part of global income but avoids double taxation by applying the exemption method (Freistellungsmethode) for most property income. Under this method, Spanish rental income is exempt from German income tax but still counted when determining the progressive tax rate applied to your other German income, a concept known as Progressionsvorbehalt.

Q: What is Anlage AUS and when do German owners need it?

Anlage AUS (Auslandseinkuenfte) is the supplementary schedule of the German income tax return (Einkommensteuererklaerung) for reporting foreign income. German residents with rental income from a Spanish property must complete Anlage AUS in addition to the main return. The schedule captures the income, the Spanish tax paid, and the treaty treatment applicable. It is the mechanism by which the Finanzamt determines whether income is exempt from German tax or subject to the Progressionsvorbehalt rate effect.

Q: What NRIT rate do German owners pay compared to UK owners?

German residents benefit significantly from their EU membership status in the Spanish NRIT system. German owners pay 19% on net rental income after deducting mortgage interest, IBI, community fees, insurance, management fees, and depreciation. UK owners, classified as non-EU post-Brexit, pay 24% on gross rental income with no expense deductions at all. On an identical property with 15,000 EUR gross rent and 5,000 EUR costs, a German owner pays 1,900 EUR NRIT and a UK owner pays 3,600 EUR, a difference of 1,700 EUR annually on the same asset.

Quick answer: German residents who own a Spanish holiday home pay Spanish NRIT at 19% on net rental income, which is the favourable EU rate. They must also report the property income in Germany via Anlage AUS and, in many cases, Anlage V. The Doppelbesteuerungsabkommen (DBA) between Germany and Spain exempts the income from German tax under the Freistellungsmethode, but the Progressionsvorbehalt means Spanish income affects the rate applied to your other German earnings.

Germans are among the largest groups of foreign property buyers in Spain. Notaries data consistently places German buyers at around 6.52% of all foreign purchases, putting them in the top four nationalities alongside British, French, and Romanian buyers. The Costa Blanca, Mallorca, and the Costa del Sol account for the majority of German acquisitions. Many buyers start as holiday users and later consider renting the property when not in personal use. Both uses have tax consequences in Spain and Germany that benefit from advance planning. This guide covers the Spanish NRIT position for German owners first, then the German filing obligations, and finally how the DBA co-ordinates between them. For the full NRIT mechanics including Modelo 210 filing dates, pair this with the dedicated Spain non-resident income tax on rental income guide. For purchase costs, see the cost of buying property in Spain hub.

Why German buyers have a better NRIT position than UK buyers

Spanish Non-Resident Income Tax operates a two-track system based on the owner’s tax residency. EU and EEA residents are taxed under one set of rules; everyone else, including UK residents after Brexit, is taxed under a less favourable set.

German residents, as EU citizens, fall into the advantaged track. This is one of the most material differences between German and British ownership of identical Spanish properties.

Owner nationality	NRIT rate	Taxable base	Expenses deductible	Example tax on 15,000 EUR rent (5,000 EUR costs)
German (EU resident)	19%	Net income	Yes	10,000 EUR taxable, 1,900 EUR tax
French (EU resident)	19%	Net income	Yes	10,000 EUR taxable, 1,900 EUR tax
Dutch (EU resident)	19%	Net income	Yes	10,000 EUR taxable, 1,900 EUR tax
UK (non-EU post-Brexit)	24%	Gross income	No	15,000 EUR taxable, 3,600 EUR tax
US (non-EU)	24%	Gross income	No	15,000 EUR taxable, 3,600 EUR tax

For German owners, the allowable deductions from gross rental income include mortgage interest, IBI (the annual Spanish property tax), community of owners fees, property insurance, maintenance and repair costs, and depreciation. When these expenses are substantial relative to rent, the net taxable income can be considerably lower than the gross rent received, making the effective Spanish tax rate on gross income well below the headline 19%.

Deductible expenses for German owners under NRIT

Spanish law allows EU resident non-owners to deduct expenses that are directly related to generating the rental income. The deduction is available because EU law requires Spain to treat EU residents comparably to Spanish residents in this respect. The list of qualifying expenses is set by the IRNR (Impuesto sobre la Renta de no Residentes) regulations and confirmed annually.

Expense	Deductible under NRIT for EU residents	Notes
Mortgage interest	Yes	On the portion financing the Spanish property
IBI (annual property tax)	Yes	Full amount for rental periods
Community of owners fees	Yes	Including building maintenance levies
Property insurance	Yes	Proportional to rental period
Letting agent commission	Yes	Full amount
Repairs and maintenance	Yes	Revenue repairs, not capital improvements
Depreciation	Yes	Typically 3% of construction cost annually
Rubbish collection (basura)	Yes	If separately charged

Capital improvements, such as a new kitchen or bathroom installation, are not deductible as rental expenses but increase the acquisition value for Spanish capital gains tax purposes when you eventually sell. The full treatment of exit taxes is explained in the Spain capital gains tax guide. The distinction between a repair (revenue) and an improvement (capital) is the same conceptual divide you encounter in German income tax law.

Imputed income tax: the cost of not renting

A Spanish holiday home that sits empty or is used only by the family for personal holidays still generates a Spanish tax obligation. Spain charges non-residents an imputed income (imputacion de rentas inmobiliarias) on properties that are not used as a primary residence and not rented commercially for the full year.

The taxable base for imputed income is:

1.1% of the cadastral value if that value has been revised within the last ten years
2% of the cadastral value if the value has not been revised within the last ten years

German owners pay this at the 19% EU rate. For a property with a cadastral value of 150,000 EUR and an unrevised value:

Imputed income base: 2% of 150,000 EUR = 3,000 EUR
NRIT at 19%: 570 EUR per year

This is not a large sum, but many German holiday-home owners are unaware of the obligation until they receive a Requerimiento from the Agencia Tributaria, sometimes for multiple unpaid years with interest. The imputed income tax is declared annually on Modelo 210 by 31 December of the year following the relevant tax year.

If you rent the property for part of the year and use it personally for the rest, the imputed income rule applies proportionally to the personal-use months. Your Spanish gestor calculates both the rental income portion and the imputed income portion and files two separate Modelo 210 declarations.

The Doppelbesteuerungsabkommen: Germany-Spain DBA explained

The Agreement between the Federal Republic of Germany and the Kingdom of Spain for the avoidance of double taxation, in force since 1968 and updated over subsequent decades, is the legal treaty that co-ordinates how both countries tax the same income. German owners of Spanish property will encounter three key provisions.

Article 6 (Einkuenfte aus unbeweglichem Vermoegen): Income from immovable property situated in Spain may be taxed in Spain. Spain has the primary taxing right on Spanish rental income and imputed income. Germany cannot prevent Spain from charging NRIT.

Article 23 (Vermeidung der Doppelbesteuerung): Germany applies the exemption method (Freistellungsmethode) for income that Spain has the primary right to tax. Spanish rental income is exempt from German Einkommensteuer. You do not pay German income tax on the same money you already paid NRIT on in Spain.

Progressionsvorbehalt: Despite the exemption, German law requires that exempt foreign income be included in the calculation of the progressive tax rate applied to your German-source income. Your Spanish net rental profit (after NRIT expenses) is added to your German taxable income purely for the purpose of determining which tax band applies. Once the rate is determined, the Spanish income is removed and only German income is actually taxed at that rate. The effect is that Spanish rental income can push your German salary or pension income into a higher marginal band.

Step	What happens
1. Spanish income earned	10,000 EUR net after NRIT expenses
2. Spanish NRIT paid	1,900 EUR to Agencia Tributaria
3. German tax return filed	Spanish income added to German income for rate purposes
4. German taxable income	German income only (Spanish income excluded from base)
5. Progressive rate applied	Rate determined with Spanish income added; applied to German income only
6. Progressionsvorbehalt effect	German income taxed at slightly higher marginal rate than without Spanish income

For German owners with modest Spanish rental income relative to German earnings, the Progressionsvorbehalt effect is small. For owners with large rental portfolios in Spain, the rate effect on German income can be meaningful.

Filing in Germany: Anlage AUS and Anlage V

German tax residents must include their worldwide income in their Einkommensteuererklaerung, the annual income tax return filed with the Finanzamt. For Spanish rental income, the relevant supplementary schedules are:

Anlage AUS (Auslandseinkuenfte): This schedule captures all foreign-source income. You declare the Spanish rental income (net of NRIT expenses), the Spanish tax paid, and confirm the applicable treaty country and treaty method. The Finanzamt uses this to apply the Freistellungsmethode and calculate the Progressionsvorbehalt effect.

Anlage V (Einkuenfte aus Vermietung und Verpachtung): Some Finanzamt offices require this schedule for foreign rental income in addition to Anlage AUS, to detail the income and expense calculation line by line. Others accept Anlage AUS alone. Practice varies by Finanzamt and Steuerberater preference. If you are filing without professional help, contact your local Finanzamt (Wohnsitz-Finanzamt) to clarify which combination they require.

The German filing deadline for the Einkommensteuererklaerung is typically 31 July for self-filers and 28 February of the following year when filed by a registered Steuerberater (tax adviser). Extensions may apply depending on the year.

Buying property in Spain as a German citizen: the process

The purchase process in Spain is the same for all foreign nationals. German citizenship does not create a simplified route, nor does EU membership. The key steps are:

NIE number: Mandatory before completion. German buyers can apply at any Spanish consulate in Germany (Berlin, Munich, Frankfurt, Hamburg, and others) or at a police station in Spain. A Spanish solicitor with a power of attorney (Vollmacht) can also apply on your behalf remotely.

Spanish bank account: Required for transferring purchase funds and paying ongoing costs such as IBI and community fees. Opened in person at a Spanish bank branch in most cases.

Reservation and due diligence: A deposit of typically 10% is paid at the private purchase contract stage. The due diligence period between private contract and completion is when your solicitor checks the land registry, confirms the property is debt-free, verifies planning status, and reviews the community of owners accounts. The cost of buying property in Spain guide details all the purchase cost components including ITP by region.

Notary completion: Both parties sign the escritura before a Spanish notary. The deed is transmitted to the land registry and the buyer pays the applicable purchase tax within 30 days.

Post-purchase registration: The Spanish bank account and NIE together form the foundation for paying NRIT, IBI, and community fees. Setting up a direct debit mandate for IBI from your Spanish account avoids missed payments, which can result in a surcharge and, in extreme cases, a charge on the property.

German-specific considerations for holiday homes in Spain

German buyers often acquire properties as Ferienwohnung (holiday apartments) on the Costa Blanca or Mallorca. A few practical points specific to the German context:

The tourist rental licence requirement in Spain varies by region. Mallorca (Balearic Islands) has strict limits on new licences and a moratorium in some areas. The Valencia Community (Alicante, Benidorm, Valencia) has its own regional licensing system. A property marketed as rentable without an active licence creates legal exposure in Spain and a tax position in Germany if the income is declared but the rental was technically unlicensed.

Inheritance rules for Spanish property are subject to both Spanish succession tax and, upon the heir’s return to Germany, potentially German Erbschaftsteuer. The two regimes do not fully co-ordinate in all cases. Owners of high-value Spanish properties should seek estate planning advice that covers both jurisdictions.

Currency management is less of an issue for German buyers than for UK buyers because both Germany and Spain use the EUR. There are no FX conversion costs on the purchase, no ongoing currency risk for rental income, and no exchange rate complication on the NRIT or German filing.

Buyer scenarios for German holiday-home owners

German buyers cluster into three profiles. Match your scenario before you model NRIT and Anlage AUS obligations.

Scenario	Typical property	Spanish tax focus	German filing focus
Pure Ferienwohnung, personal use only	Mallorca or Costa Blanca 2-bed	Imputed Modelo 210 on cadastral value	Anlage AUS with exempt imputed income
Mixed use: 8 weeks personal, rest let	Alicante coast apartment	Split rental quarters + imputed months	Anlage AUS + Progressionsvorbehalt on net rent
Buy-to-let investor, never visits	Fuengirola or Benidorm long-let	NRIT on net rent at 19%	Anlage AUS with treaty exemption

For investors targeting net yield above 4 percent after all costs, run the Spain rental yield guide stack with German NRIT deductions, not UK gross-rate assumptions. For retirees using the property personally, budget imputed tax even in empty months; many Finanzamt queries start when Spanish Requerimientos arrive before the German return is filed.

The net yield picture for German owners

German owners benefit from the most favourable NRIT position of the main foreign buyer groups in Spain. The 19% net-income rate, combined with the substantial list of allowable deductions, means that the effective Spanish tax on rental income can be well under 10% of gross rent for well-managed properties with normal running costs.

The Spain rental yield guide sets out how to stack all costs, including NRIT, IBI, insurance, community fees, and management, into a net yield calculation. For German owners, the NRIT line in that stack is significantly more favourable than for non-EU buyers, which is a genuine competitive advantage when comparing net returns across investor nationalities.

Always model the full net yield with your own costs and your own NRIT rate before comparing Spanish property returns with other asset classes or other countries. Gross yield figures quoted by agents or developers exclude all costs and are not comparable between owners from different tax jurisdictions.

For a curated shortlist of Spanish properties that match your investment profile and budget, request a shortlist.

Frequently Asked Questions

Do German residents pay NRIT on a Spanish holiday home?

Yes. All non-resident owners pay Spanish NRIT. German residents, as EU taxpayers, pay 19% on net rental income after deducting allowable costs including mortgage interest, IBI, community fees, insurance, and depreciation. For personal-use periods with no rent, Spain charges an imputed income tax at 19% on 1.1% or 2% of the cadastral value.

How does the Doppelbesteuerungsabkommen between Germany and Spain work?

The DBA allocates the primary taxing right on Spanish rental income to Spain. Germany applies the Freistellungsmethode (exemption method), meaning Spanish rental income is exempt from German income tax. However, the Progressionsvorbehalt applies: Spanish income is added to your German income purely to determine the progressive tax rate applied to your German earnings, then removed from the actual taxable base.

What is Anlage AUS and when do German owners need it?

Anlage AUS (Auslandseinkuenfte) is the German income tax return schedule for reporting foreign-source income. German residents with Spanish rental income must complete Anlage AUS to declare the income, the Spanish tax paid, and the applicable treaty treatment. Some Finanzamt offices also require Anlage V. Check with your Steuerberater or local Finanzamt which combination applies.

What NRIT rate do German owners pay compared to UK owners?

German owners pay 19% on net rental income after allowable expenses. UK owners, classified as non-EU post-Brexit, pay 24% on gross income with no deductions. On 15,000 EUR gross rent with 5,000 EUR costs, a German owner pays 1,900 EUR NRIT and a UK owner pays 3,600 EUR, a difference of 1,700 EUR annually on the same property.

Do I pay tax in Germany on Spanish rental income?

Under the DBA, Spanish rental income is exempt from German Einkommensteuer. You pay NRIT in Spain and declare the income in Germany on Anlage AUS, but the income is not taxed again by the Finanzamt. The Progressionsvorbehalt means it affects the rate on your German income, but the Spanish rental profit itself is not included in your German tax base.

What is imputed income tax on an empty Spanish property?

Spain charges non-residents a deemed income tax even if the property is not rented. The taxable base is 1.1% or 2% of the cadastral value (depending on when the value was last revised), taxed at 19% for German owners. For a property with a cadastral value of 150,000 EUR, this is typically 285 to 570 EUR per year, declared annually on Modelo 210.

How large is the German buyer share of foreign property purchases in Spain?

German buyers consistently account for around 6.52% of all foreign property purchases in Spain according to Notaries data, making them one of the largest buyer groups. The Costa Blanca, Mallorca, and the Costa del Sol are the most popular destinations. German buyers benefit from EU-status NRIT rates and the EUR-EUR transaction with no currency conversion cost.