Does anyone know about the income tax situation in Germany regarding rented property?

Specifically, can I offset mortgage interest against rental income to reduce income tax which I would pay on rent recieved for a property which I own?

Thanks

Yes you can offset mortgage interest. Some older building under denkmal schutz have some tax breaks were you can write of the investment in upgrading the building excalerated in 12 years I believe.

@Johnny Cash
You can offset mortgage interest against rental income tax. Or better: against rental income. To reduce income tax with buildings with monumental protection (in german Denkmalschutz) you must refurbish the property yourself, additional you can offset the interest. This is very difficult for our customers from UK (and you have a lot of paperworks). Offset mortgage interest is pretty easy and without any risk.