Tax offices may review rental contracts without tenants’ consent – Significance of the Federal Fiscal Court ruling of February 18, 2025
The question of whether landlords must obtain the consent of their tenants before submitting rental agreements to the tax office repeatedly concerns real estate practice. With its decision of February 18, 2025 (Ref. IX R 6/23), the Federal Fiscal Court (BFH) has now provided clear guidance and established practical principles for the disclosure of rental documents to the tax authorities.
Tax audit measures and the legality of data transmission
The underlying case addressed the tax audit of income from rental and leasing. As part of income tax assessment, tax offices regularly request to inspect rental contracts to, among other things, verify rent amounts, ancillary cost agreements, or contract durations. However, the transmission of tenants’ personal data raised data protection concerns, especially regarding informational self-determination.
Data protection considerations in the disclosure of rental contract contents
According to the BFH, the transfer of personal information – such as name, address, contractually agreed rent, and other rent-related details – is grounded in tax law. In particular, the Fiscal Code imposes a duty to cooperate on taxpayers to ensure accurate tax assessment (§ 90 AO). While tenants can generally invoke personality rights and the protection of their data, the BFH ruled that the legitimate interests of the tax authorities outweigh these, given the legal obligation to correctly determine and assess taxes. The disclosure of rental contracts also serves to determine income and to ensure compliance with tax regulations.
The resulting interference with tenants’ rights is, in the court’s view, proportionate and is sufficiently compensated by specific confidentiality and data protection provisions in tax procedural law (§ 30 AO). The disclosure of rental contract details to the tax office thus does not constitute an unlawful infringement of tenants’ data protection rights and does not require prior consent.
Practical consequences for landlords and tenants
Cooperation duties of landlords
In light of this decision, landlords are reaffirmed in their obligation to present rental agreements or corresponding extracts to the tax office upon request. This is particularly relevant given the complexity of modern tenancy relationships, as not only primary rental contracts but also collateral agreements, graduated rent arrangements, or operating cost provisions can be significant for tax assessment. Refusing to disclose these, citing tenant data protection, is legally untenable according to current supreme court jurisprudence.
Implications for tenants
For tenants, the decision means that their contractual data may be disclosed as part of their landlord’s tax obligations, regardless of explicit permission. Nonetheless, tenant data remains protected by tax secrecy and may, in principle, be used only for tax purposes. Unauthorized use or other disclosure remains inadmissible and is not permitted by the authorities.
Relationship between tax law and data protection in tenancy relationships
The decision makes it clear that obligations arising from tax law regularly take precedence over data protection considerations, insofar as necessary for tax determination. The factual purpose limitation of data use by the tax administration and compliance with confidentiality obligations ensure the protection of personal information despite the required transparency towards the tax authority.
Special considerations in exceptional circumstances
In individual cases – for example, when particularly sensitive data is included in the rental agreement or for tenancy models with enhanced protection – it must always be assessed whether disclosure is truly necessary or whether redaction of irrelevant sections would suffice. There will continue to be scope for handling data in a minimalistic manner, without fundamentally questioning the duty to cooperate for tax purposes.
Conclusion and further steps
With its decision of February 18, 2025, the Federal Fiscal Court has provided a significant guide that brings clarity to tax practice nationwide. Landlords must disclose rental contracts to the tax office without requiring tenants’ consent. Tenants, in turn, may rely on the fact that their data will be used exclusively within tax proceedings and are subject to additional protection mechanisms.
If you have any questions regarding the transmission of rental-related documents to the tax office, the structuring of rental agreements, or data protection issues, the team at MTR Legal Rechtsanwalt is available for further information and explanations.
