Renting out to tourists via platforms such as Airbnb is popular — but there are clear rules in Germany. Here is an overview of the most important requirements.

Legal aspects of short-term rentals in Germany

Renting to tourists via platforms such as Airbnb is popular — but there are clear rules in Germany. The legal regulations vary considerably depending on the federal state and city. Here is an overview of the most important requirements.

Basics of short term rental

Definition of short term rental

Short-term rentals of furnished living spaces for tourist or business purposes with a length of stay of less than one month are considered to be.

Legal classification

Depending on the scope and type of rental, it can be used as:

•Private sideline

•Commercial activity

•Freelance work

be ranked.

Nationwide regulations

1. Income tax law

Tax liability

All income from short-term rentals is taxable and must be reported in the income tax return.

Allowances:

•Up to 520€ per year: tax-free (§ 22 No. 3 EStG)

•In addition: full tax liability

Deductible costs:

•Cleaning costs

•Advertising costs

•Repairs and maintenance

•Administrative costs

•Insurance

•Depreciation on equipment

2. Sales tax law

Small business regulation:

•Up to 22,000€ annual turnover: no sales tax

•In addition: 7% or 19% sales tax depending on the service

Important: Renting furnished living spaces is usually subject to sales tax!

3. Trade law

Business registration required for:

•More than 8 apartments

•Full-time activity

•Exceeding certain sales thresholds

Indications of commerciality:

•Sustainability of activity

•Intent to make a profit

•Participation in general economic traffic

•Self-employment

Country and city-specific regulations

Berlin: Prohibition of misuse

regulations:

•Registration requirement for all holiday homes

•Main residence rule: only your own apartment can be rented

•Second homes: permit required

•High fines for violations (up to €100,000)

Munich: Strict controls

Special features:

•Misappropriation statutes since 2016

•Registration requirement

•Maximum 8 weeks per year for main residence

•Authorization requirement for commercial rental

Hamburg: More liberal approach

regulations:

•Registration required for rentals over 8 weeks/year

•Prohibition of misuse in areas with housing shortages

•Fines up to €50,000

Cologne: Medium regulation

Requirements:

•Prohibition of misuse

•Approval requirement after a certain rental period

•Checks by municipal authorities

Dresden: Emerging regulation

Development:

•New misuse statutes planned

•More liberal approach so far

•Registration requirement introduced

Aspects of tenancy law

Sublet for rental apartments

Landlord's consent:

•Usually required for furnished subletting

•Refusal only possible if there is a legitimate interest

•Written agreement recommended

Protection against dismissal:

•Landlord can cancel in the event of unauthorised subletting

•Warning usually required

Liability issues

Road safety obligation:

•Landlord is liable for damage caused by structural defects

•Requires regular maintenance and control

Neighbourhood law:

•Disturbances of peace caused by guests can be problematic

•House rules must be observed

Insurance law aspects

Necessary insurance

Liability insurance:

•Coverage for damage caused by guests

•Special policies for vacation rentals

•Costs: 200-500 € per year

Home insurance:

•Extension needed to include holiday rentals

•Coverage for theft and damage

Legal protection insurance:

•Protection in case of disputes with guests or authorities

•Reimbursement of lawyers' fees

Data protection law (GDPR)

Process guest data

Lawful processing:

•Legal basis required for data processing

•Mostly: Fulfilment of contract or legitimate interest

Information requirements:

•Privacy statement required

•Information about the purpose of data processing

•Set retention periods

Data security:

•Appropriate technical protection measures

•Deletion after retention periods

Aspects of employment law

Employment of assistants

Minijob regulations:

•Cleaners often employed as mini-jobbers

•Observe social security requirements

•Accident insurance required

Avoid bogus self-employment:

•With regular activity

•Commitment to instructions

•Economic dependency

Practical compliance tips

1. Legally secure registration

Checklist: □ Check local regulations □ Obtain required permits □ File tax declaration □ Adjust insurance coverage

2. Documentation

Important documents:

•Maintain guest registers

•Collect receipts

•Document income

•Archiving communication

3. Contractual insurance

Rental contracts:

•Define clear house rules

•Formulate disclaimers

•Arrange a deposit

•Set cancellation conditions

Avoid common legal mistakes

1. Rental without registration

Risks:

•High fines

•Subsequent payment of taxes

•Consequences of commercial law

2. Incorrect tax treatment

problems:

•Tax back payments

•Interest and late charges

•Business tax consequences

3. Inadequate insurance coverage

Risks:

•Personal liability for damage

•High costs in litigation

•Existential risks

4. Data breaches

Consequences:

•Fines from data protection authorities

•Compensation claims by those affected

•Reputational damage

Future Regulatory Prospects

Trends 2025

Strengthening controls:

•Automated platform monitoring

•Better collaboration between authorities

•Higher fines

Harmonization of regulations:

•Nationwide standards planned

•Standardization of procedures

•Digital registration processes

Tax changes:

•Possible tightening of taxation

•New documentation requirements

•International coordination

Professional legal advice

When advice makes sense

•In case of uncertainty about the legal situation

•Before the rental starts

•For government inquiries

•In case of problems with guests or neighbors

What good advice does

•Analysis of the individual situation

•Development of legally secure structures

•Ongoing compliance monitoring

•Representation before authorities and courts

Arbio as a complete solution

Legal certainty through expertise

Our service includes:

•Legally secure registration with all authorities

•Ongoing compliance monitoring

•Tax-optimized structuring

•Professional documentation

Minimize risks:

•Avoiding costly mistakes

•Protection against fines

•Optimizing the tax burden

•Legally secure contract drafting

Conclusion: Legal certainty as a success factor

The legal requirements for short-term rentals in Germany are complex and constantly changing. Mistakes can be costly and significantly impact profitability.

Successful short term rental requires:

•Thorough knowledge of local regulations

•Professional tax and legal advice

•Ongoing compliance monitoring

•Adaptation to legal changes

With the right legal structure and professional support, you can take advantage of short-term rental opportunities while minimizing all risks.

Arbio helps you to rent out successfully and legally — from initial registration to ongoing administration. Contact us for comprehensive legal advice!

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