Question re divorce, UK rental, DE Progressionsvorbehalt

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Emkay
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Question re divorce, UK rental, DE Progressionsvorbehalt

Post by Emkay »

I’d really appreciate advice in this. I’ve never paid tax on my UK rental income as it’s below the UK tax free allowance. Since 2021, my UK rental income is taxed in Germany under Progressionsvorbehalt. I believe this is based on my husband’s tax class. I’ve no other income.

When separated and then divorced, how would my UK rental income be taxed in Germany as a single person?

Many thanks in advance.
Andy P
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Re: Question re divorce, UK rental, DE Progressionsvorbehalt

Post by Andy P »

It would still be subject to Progressionsvorbehalt in Germany, but if you have no German income, there would be no tax due.
Emkay
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Re: Question re divorce, UK rental, DE Progressionsvorbehalt

Post by Emkay »

Andy P wrote: Wed Dec 03, 2025 7:56 pm It would still be subject to Progressionsvorbehalt in Germany, but if you have no German income, there would be no tax due.
Thank you Andy P. Just another question if I may…..for round numbers, I earn 9000€ from UK rental and just over the personal 1000€ tax free DE savings interest. Is the interest over the 1000€ added to overall income ie. under tax free allowance? Or is it taxed at a different rate? Currently the bit over is covered by sharing the interest free amount with my husband. Ie 2000€ as a couple. We’ve both submitted Steuerfreibetrag for savings accounts.

Many thanks in advance.
Andy P
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Re: Question re divorce, UK rental, DE Progressionsvorbehalt

Post by Andy P »

Emkay wrote: Thu Dec 04, 2025 6:12 am Thank you Andy P. Just another question if I may…..for round numbers, I earn 9000€ from UK rental and just over the personal 1000€ tax free DE savings interest. Is the interest over the 1000€ added to overall income ie. under tax free allowance? Or is it taxed at a different rate? Currently the bit over is covered by sharing the interest free amount with my husband. Ie 2000€ as a couple. We’ve both submitted Steuerfreibetrag for savings accounts.

Many thanks in advance.
I'm not 100% sure, but I think it's like this:

Ignoring the UK income, interest over the 1000€ would be taxed at 25% + Soli. But you can claim to have it taxed at your income tax rate if lower, so no tax would be payable.

With the Progressionsvorbehalt, I think the same would apply. So if your total taxable income including Progressionsvorbehalt is less than the tax free allowance (12,096€ in 2025) there wouldn't be any tax if you make that claim.
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