Renting out vacation properties—the tax office wants to know exactly how much

Oct 30, 2025

Starting in the 2023 tax year, there will be a new “Anlage V-FeWo” (Appendix V-Vacation Rental) section in the income tax return. Information on rented vacation properties must already be provided in the tax return. Therefore, those affected should not be surprised if their tax advisor requests additional information or documentation on their vacation property or properties in the future.

In particular, the tax authorities will want information on days of personal use, vacancy, and rental as part of the tax return. The local rental days must also be specified. These can be obtained either from the local authority responsible for the vacation property or from the Federal Statistical Office or online.

Furthermore, information must be provided on whether the rental is carried out by the owner themselves or through an (unrelated) agent, whether personal use is contractually excluded, and whether the owner's permanent residence is in the same building or in the immediate vicinity.

Essentially, the tax office wants to determine whether the vacation home is being rented out with the intention of generating income. If so, any losses can also be taken into account. If, on the other hand, it is purely a “hobby,” then losses are not taken into account. If a certain portion of the vacation property is used for personal purposes, any losses claimed may be reduced accordingly.