German resident with UK property income: Double Tax Treaty implications

German resident with UK property income Tax Treaty

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I have a client who is a German resident who owns a rental property in the UK. The income from this rental property is her sole income in the UK.

From my research, I believe she needs to complete a DT-Individual to gain relief  on the UK taxation (which from my understanding will grant a 5% relief on UK tax) and then file her Self-Assessment in the UK. 

Does the client then have to declare this UK Rental income in Germany? If so will she incur tax in Germany on this income?

Also, are there any forms she must complete in Germany to gain a relief?

Many thanks

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By debhealy
09th Nov 2016 14:42

Digging back into my memory I thought the DT-individual was for claiming relief for tax on pensions, annuities, interest and royalties - but not rental income?

It is a long time since I looked at the DT treaty with Germany (not my usual light reading...) but I thought that rental income in the UK came under the Article for income from immovable property and was taxable in the UK and therefore not also taxable in Germany.

I can't say for certain so I would suggest a read of the DT treaty to get the definitive answer as it is a complicated area.

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