'In the courts of law, let the laws speak and the monarch be silent'
(Frederick the Great)

Jurisdiction from 01/03/2006
Rent losses in foreign EU nations is lowering taxes
Judgement by the European Court, Az.: C-152/03

Property owners renting out their properties in foreign EU countries who are going into the red can declare these losses in their tax returns. The tax office must take into consideration this negative income with the calculation of their income tax in the future. This is the decision of the European Court (EuGH). That means income from home rentals will be liable for tax in the country where the house or flat stands, but according to German tax law this will be taken into consideration with the calculation of the tax charges, and brought up to the higher rate. Now for German-French married couples this is currently reversed, as the outgoings for houses in France are higher than the income they can generate. Other than with houses situated in Germany, the Inland Revenue office here has not taken these losses into consideration. The European Court now deems this as contrary to European law. Home ownership in foreign EU countries is being discriminated against without cause.