Filling out Anlage V: the landlord's guide (2026)

28 July 2026 · approx. 8 min read

Anyone letting a property in Germany has to report the income in Anlage V of their income tax return. The form looks intimidating – but it follows a simple logic: income at the top, deductible expenses below, the result at the bottom. This guide walks you through the key items line by line.

What is Anlage V?

Anlage V records income from letting and leasing (§ 21 EStG). As a rule you fill in a separate Anlage V per property. The underlying principle is a simple calculation:

Rental income − deductible expenses = surplus (or loss). A loss is not a mistake: in the first years after purchase or a major renovation it is often normal – driven by depreciation and loan interest – and it lowers your tax burden.

Part 1: The income

Here you enter what you actually received in rent and service-charge advances – on a cash basis, i.e. in the year of payment.

Item	What belongs here
Net cold rent	The net cold rent (Kaltmiete) received for the property in the tax year.
Service charges	Apportionable operating costs paid by the tenant (advance payments and back payments).
Other income	e.g. income from parking spaces or garages, or a retained deposit where it becomes taxable.

Important: the service charges paid by the tenant are first of all income. You deduct the operating costs you actually incurred further down as expenses – on balance this nets out as long as the charges cover the costs.

Part 2: The deductible expenses

Deductible expenses (Werbungskosten) are all costs connected with the letting. They are the lever with which you reduce your taxable result. The four most important blocks:

1. Depreciation (AfA)

You depreciate the building portion of the purchase price over its useful life – the land portion is not depreciated. For residential buildings the rate is typically 2% or 2.5% per year depending on the year of construction (for completion from 2023 the straight-line rate was raised to 3%). If you build or renovate in a way that qualifies under § 7b EStG, you can additionally claim a special depreciation – limited to the first few years.

2. Loan interest

The interest (not the principal repayment!) on the property loan is fully deductible. So out of the monthly annuity only the interest portion counts, and it decreases over the term. Commitment interest and financing incidental costs also belong here.

3. Maintenance expense

Repairs and maintenance (a broken heating system, painting, replacement windows in an existing building) are immediately deductible maintenance expense. Watch the 15% threshold: if net renovation costs within three years of purchase exceed 15% of the building's acquisition cost, they are reclassified as acquisition-related production cost – deductible only via depreciation instead of immediately. Keeping an eye on this threshold often saves several thousand euros.

4. Other deductible expenses

Non-apportionable management costs (e.g. property-management fees, bank charges)
Property tax, insurance, membership fees (owners' association)
Travel to the property, postage, listings when re-letting
Tax-advisor fees, insofar as they relate to the letting

Not deductible are the principal repayment (a reshuffling of assets, not a cost) and notional maintenance reserves as long as they have not actually been spent.

Part 3: The result

At the end the tax office subtracts the total deductible expenses from the income. A surplus increases your taxable income; a loss is offset against other income and reduces your tax burden. With joint ownership (e.g. a married couple) the result is split between the owners in proportion.

The most common mistakes

Treating principal repayment as a cost – only the interest portion counts.
Overlooking the 15% threshold – a large renovation shortly after purchase booked incorrectly.
Depreciating the land portion too – only the building is depreciated.
Forgetting service charges – apportioned operating costs are income and expense.
Poorly filed receipts – no receipt, no deduction.

Anlage V without the paper chaos

RenoDiary prepares the matching Anlage V lines per property and year – from your loan, rent and receipt data. Including depreciation, § 7b special depreciation, the 15% threshold and CSV export.

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FAQ

Do I need a separate Anlage V per apartment?

As a rule one Anlage V per property or economic unit. With several properties you fill in several forms accordingly.

What if I make a loss?

A loss from letting is generally offset against your other income and lowers your income tax. In the first years after purchase this is common, driven by depreciation and interest.

Does a partly owner-occupied property count?

Only the let share of the area is relevant. Owner-occupied areas generate no rental income, and the proportional costs are not deductible as expenses.

This article provides general orientation and does not replace individual tax advice within the meaning of § 3 StBerG. Specific line numbers and percentages can change from one tax year to the next – the official form and advice from an authorized professional are what count.