Tax: What parents need to pay attention to when renting to their own children
If you rent an apartment to relatives, you are not only offering them a place to stay, but you can also benefit from tax advantages. Three rules to make the plan work.
In Germany, many students will be moving to university cities in October, but affordable housing is scarce. Parents who can afford it may consider buying a small apartment for their child, which can also provide tax benefits. To qualify for the full tax benefit, the rent should be at least 66% of the local market rate, and a written rental agreement is essential. The agreement should include details such as rent, payment terms, and maintenance costs, and be enforced as if the tenant were unrelated.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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