Tax rules for income from renting out a film location

Renting out a film location and tax: What location hosts need to know

Are you renting out your home, office, or property as a film location through SetScout and wondering what the German tax authorities expect? Here is a concise overview. (Important: This is not tax advice. If larger sums are involved or you are unsure, consult a tax adviser.)

Yes, the income is taxable

As soon as you receive money for your location, it counts as income that must be included in your income tax return. It is not tax-free simply because it is only a side activity or was paid in cash.

What type of income

is it, and where do you report it?

That depends on how often and on what scale you rent out the location:

- Regular, short-term rental of your rooms or property → As a rule, this is rental and lease income (Section 21 EStG, German Income Tax Act). Report it in Anlage V of your tax return. The German Federal Fiscal Court, or rather the Munich Fiscal Court (5 K 2947/10), has clarified that, for short-term rentals for film shoots, the tax office must assess your intention to make a profit by means of a surplus forecast so you should be able to show plausibly that the arrangement will ultimately produce a surplus. - Only occasionally or once, without a genuine rental operation → This may be treated as income from other services (Section 22 no. 3 EStG). Report it in Anlage SO. A tax-exemption threshold of €256 per year applies here: If you remain below it, the entire amount is tax-free. From a profit of €256, the entire amount is taxable because this is a threshold, not an allowance.

The good news in both cases is that you can deduct your costs including a proportion of utility costs, cleaning, repairs after the shoot, travel, and wear and tear. Only the surplus is taxed.

What is the tax rate?

There is no separate rate for income from locations. The surplus is added to your other income, such as your salary, and taxed at your personal income tax rate on a progressive scale from 0% to 45%. You pay no income tax up to the basic personal allowance, around €12,300 in 2026. Above that amount, the rate increases with your total income.

Do I need to register a business?

Usually, no. Simply renting out your property is considered private asset management, so you do not need to register a business. It may become a business if you offer hotel-like additional services such as on-set staff, catering, equipment services, or full-service support, or if you operate on a large scale. Trade tax may then apply, although only above a tax allowance of €24,500 in annual profit.

What about VAT?

Be careful: Short-term location rental differs from traditional residential letting. Short-term provision for less than six months is subject to VAT. However, under the small-business scheme you do not have to charge VAT as long as your turnover in the previous year was below €25,000 (the threshold since 2025). VAT becomes relevant only above that amount.

Rule of thumb when getting started

If you rent out a location regularly, report the income properly in Anlage V and deduct the costs. With turnover below €25,000, you remain exempt from VAT, and with profits below €24,500, you remain exempt from trade tax.

*Note: This article is not a substitute for professional tax advice. Information current as of July 2026.*