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…
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 https://www.elster.de/eportal/start where you also find the relevant forms. At…
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…
If you are a single individual who has nothing but income as an employee and who has worked in Germany for the full year you have no obligation to file a German tax return at all (this can be different for married couples). However, you can voluntarily file a tax return if you expect a…
How to Register as a Freelancer/Contractor? You need to register with your local Finanzamt as “selbständig”. You can find the required registration form at: https://www.formulare-bfinv.de Your Finanzamt will then issue a tax number for you. The registration is not as complicated as the 8 page form would suggest. You need to provide information on your…
Can I Submit Forms Online? You can submit your German tax forms online at https://www.elster.de/eportal/start You need to make sure to download (for free) the most current version of the tax software onto your system. Alternatively you can also get the required software (for free) on CD-ROM from your local Finanzamt. Please note that you also need…
If you can show that you relocated for work purposes you can make a claim for your relocation expenses. In most cases it is sufficient to show that you took up work in Germany within a reasonable period after relocating. You can claim the cost of transport for yourself and all members of your family…
If you did not register as “Kleinunternehmer” you will in most cases have to show VAT on invoices if your customer is located in Germany. The most frequent domestic case we come across in which a VAT exemption applies is teaching income (if your customer is VAT exempt). If you provide a consulting service to…
How Does Renting Out a Home Overseas Affect My German Taxes? For German tax purposes the income from a foreign rental property is calculated according to German tax rules. Under German tax rules you can offset interest payments on a mortgage, a 2% annual depreciation on the purchase price of the building and any other…