Our blog has basic information to get you started to understand tax items related to your situation.
The year of your arrival in Germany as well as the year of your departure are somewhat unusual if you arrive or leave at some point during the year. Such a split income and tax year will typically require you to file a tax return as your taxes are always calculated based on your full…
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An income tax return has to be filed by July 31st for the previous year. If you work with an accountant you will automatically get an extension until the end of February of the following year, so in total there are 14 months to submit the tax return. There is no possibility to file for…
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If you work only for part of the year in Germany and are leaving Germany before the end of the tax year (the calendar year is the tax year) you have to file a tax return in Germany for this particular year irrespective of any other factors. As a rule of thumb you can get…
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In most cases getting married is relevant for tax purposes. Married couples can file a joint income tax return (they can also opt to file separate returns and they can exercise this option from year to year). If one spouse is on a higher level of income than the other spouse it is beneficial to…
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There are some expenses in your private household, which could qualify for a tax benefit. You would have to pay someone for taking over jobs in your private household, which are very typical and normally done by yourself or a member of your family.
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Children up to the age of 18 qualify for Kindergeld. Are your children still in education, they even qualify longer up to the age of 25. Currently the monthly payments are 250 € for each child. Do you already receive child benefits from another country and the amounts are smaller? In this case you would…
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On December 20th, 2017, the United States Congress approved sweeping new changes to the US Tax Code. While many of the changes impact taxes for the 2018-2019 tax filing season, there are a number of changes that took effect even before. As an expat, understanding these upcoming changes is the key to help you better…
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If you are a tax resident outside of Germany while you are working in Germany, stay in Germany for less than 183 days, and get paid by your non-German employer you will most likely not have to get involved with German taxes at all (some exceptions may apply). Whether the 183 days are counted during…
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There is no separate tax on capital gains. Capital gains are subject to income tax as regular income however: there is no capital gains tax on a property used as a private home there is no capital gains tax on a property held for more than 10 years capital gains on shares are taxed at a…
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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…
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Income tax is paid by employees on a monthly basis at the source through a withholding mechanism. Self employed individuals need to make a projection of their income for the tax year. Based on this projected figure, the tax office will work out a preliminary tax bill. This tax bill is then paid in four…
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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…
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