Indian Income · German Tax
Indian Rental Income in Germany
Indian rental income is taxed in India under DTAA Article 6 (situs rule); Germany applies the Progressionsvorbehalt — the income raises your German tax rate but isn't double-taxed.
How Germany taxes it
Under DTAA Article 6, Indian rental income (from property situated in India) is taxable ONLY in India. Germany applies the Progressionsvorbehalt: the rental income doesn't add directly to German taxable income, but it raises the average tax rate applied to your German-source income. The mechanical effect: a few hundred euros of additional German tax on your salary, even though the rent itself isn't taxed in Germany.
DTAA treatment
DTAA Article 6 (Income from Immovable Property) — situs rule, India-only taxation. The Progressionsvorbehalt is a Germany-side mechanic, not a DTAA mechanic; it preserves Germany's right to apply progressive rates without taxing the income directly.
Where it goes on your return
Indian rent goes on Anlage AUS, marked as Progressionsvorbehalt income (NOT as taxable income). Net rental income (rent minus municipal taxes, maintenance, mortgage interest, depreciation per Indian rules) is what Germany progressing-rate-considers — gross rent is wrong here.
Common gotchas
- Don't double-tax — Anlage AUS Progressionsvorbehalt section, not the regular foreign-income section
- NRI rental in India has 30% TDS by default unless tenant has form-15CA/CB filed; that TDS is creditable in your Indian return, not in Germany
- Indian municipal taxes, repairs, and standard 30% maintenance allowance are deductible against rent BEFORE the figure goes on Progressionsvorbehalt
Related guides
Declare indian rental income correctly with TaxDost
Anlage AUS handled automatically, DTAA credit calculated from your numbers — no other German tax tool does this for Indian-source income.