How to Avoid Double Taxation

Germany has concluded Double Taxation Agreements with most countries around the world (www.bundesfinanzministerium.de ). These Double Taxation Agreements determine which country has the right to levy tax on your income. These are the rules to make sure you are not taxed twice on the same income by providing a system of tax exemptions or tax credits…

Foreign Income

Is Foreign Income Taxed in Germany? If you live and work in Germany you are usually taxable in Germany on your foreign income worldwide. All your income needs to be reported to the German authorities.  If you have income outside of Germany the Double Taxation Treaty between Germany and the country where your income comes from…

Freelancer Next Steps: How to Pay VAT Taxes in Germany

Your Finanzamt will ask you to initially submit monthly VAT returns for your VAT taxes (unless you are registered as a “Kleinunternehmer” – a micro business).You will have to report your monthly VAT liability to the Finanzamt and make VAT payments accordingly. The reporting (“Umsatzsteuervoranmeldung”) is done electronically via www.elsterformular.de where you also find the relevant forms.  At…

Tax Residency

For tax purposes, nationality is only a relevant factor in very rare cases. Many tax benefits available to German nationals are equally available to EU nationals, but not in all cases to non-EU nationals. There is no specific “Expat Tax Status” in Germany like you find in some other jurisdictions. In other words: As an…