Majorca Property News

Holiday Greetings from the Tax

Tax benefits spice up the returns from holiday - and the cottage to make lucrative investment.
Who is not already on vacation, the idea came to an apartment zuzulegen. While it is not advisable to leave spontaneously from the whim of a purchase decision. But it harms nothing about the tax rules to inform and attract potential benefits of the Exchequer has, in the decision-making process - sometimes the support is very generous.


The question of the cottage within or beyond the border had in recent years with a view over the Finanzamt easy answer. In the case of domestic property, the house cost a lot easier from the tax deductible, while losses from abroad and there were hardly reached Mietüberschüsse even the local tax office to be reported. That has now changed. Black figures from the EU countries are no longer cover losses from Spain can even offset domestic income. For gardeners or artisans in Tuscany or in the Tyrol, there are now exemptions for household-related services. The domestic Holiday Property officials are now critical, as early losses. High vacancy rates hurt, and additional services, there is a danger of commercial leasing.

Inland Real Estate

In principle, financial officers also resistant to losses not ask whether the vacation home in the mountains or the sea eventually return surpluses. In rented apartments is generally assumed that the owners want to generate the black. Nevertheless, the theme of love always on the table. Interest on debt, housing depreciation and running costs are generally not without a correspondingly high revenues. Any losses are in fact without hooks only recognized if the owner of the house or apartment solely to changing rented holiday guests. Is harmful especially if the duration of the rental for more than a quarter below the normal for the average resort. Otherwise, count losses only if a long-term profit forecast can be created. If this is not possible, the treasury of love from.

Tax Traps

Two judgments give new officials the financial arguments, red figures critical to look at. So does that of Lower Saxony Finanzgericht income from property if the lessor to the hotel and guests around the spot to rent bed linen or a call near the apartment complex can use (Az.: 1 K 11.753/04). Suspicion of a hobby, according to the Munich tax even if the apartment securely leased to tourists, but about four weeks a year for their own purposes (Az: 6 K 2362/06). As it is only harmless, when the homeowner resides in the dwelling to carry out minor repairs or turn on the state of domicile in the distance on the spot informed.

Property abroad

Through an amendment in the Finance Law 2009 is Mietverluste for holiday properties in Spain or Finland in the same tax deduct as in native objects. Is the investment phase with the red figures were, the positive returns that are taxed. The dates, however, it is avoided by an own-use is allowed. Is different in the case of residences in the rest of the EU territory. These losses are interested achieved the domestic treasury now no more, but no Mietüberschüsse. These include income is not more in return. This is in red figures worse than in Spain. While accepting the tax in each EU country the losses, but the German homeowners can lack other positive income not start. In that regard, it eliminates the tax savings, which is for homes in the country, on Majorca or in Helsinki there.

Tax Rebate

If the holiday or second home in Germany or the EU, itself, can be budget-related services from the tax deductible where as the painting the walls of the home in Palma, Salzburg or Nice strike. After all, up to 1200 euros there is a year. This reduction is lost but if there is already abundant craftsmen bills for the first residence in the home from the tax deductible.


The Eigenheimzulage there are still only at building or buying before 2006 for eight years now but also for apartments or houses in other EU countries. This support can be applied to old cases still up. When Finanzgericht Cologne are currently several cases pending, whether the allowance for foreign real estate also lapsed long years must pass. Is therefore advisable, once the application.

Ferieninmobilien - So much can be saved

Vacation investment: A married lawyer with an income of 150,000 euros, rented an apartment in Majorca on holiday guests with the calculus, the home in about 15 years of age as a retirement home use. Thanks to summer and winter occupancy are 4000 Euro per year rent. The current cost is 3000 euros, 6000 euros depreciation and debt interest 3500 €. The Treasury is taking part with 61,320 euros in the holiday investment.

So much can save: EUR 150000 income tax previously 2009 * 53668 deduction Mietverluste Euro-8500 Euro re-taxed due 141500 euro 49580 euro annual tax savings in year 4088 euros over 15 years 61320 euros

* According to splitting table including church tax and solidarity surcharge.