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FAQ

Tax liability in Germany

Moving to Germany brings with it many changes that may affect your personal tax situation. In the following questions and answers, we will look at specific situations that may arise when moving to Germany.

3 minutes

Whether or not you are liable for income tax is determined by your place of residence or habitual abode, not by your citizenship.

For example, if you moved to Germany permanently, your place of residence is in Germany and you will be subject to unlimited income tax liability. The same applies if you stay longer than six months in Germany and thus have your habitual abode here.

Unlimited income tax liability means that both income earned within and outside Germany will be subject to taxation in Germany. Therefore, you may be obliged to submit an income tax return. By contrast, persons earning income in Germany but having neither their place of residence nor their habitual abode in Germany are subject to limited income tax liability.

… My spouse and children will join me or will join me later. Will my spouse and children be liable for tax in Germany?

As soon as your spouse and children have their place of residence or habitual abode in Germany, they will be subject to unlimited income tax liability in Germany.


… I earn additional income abroad (e.g. in my country of origin). How will this be treated for tax purposes?

Unlimited income tax liability (see above) means that due to the principle of world income taxation, foreign income is subject to taxation in Germany, too. That is why it must be declared in the income tax return (Form AUS (Anlage AUS) Foreign income and taxes). Any double taxation will be eliminated by the application of double taxation agreements (DTA) or – where a double taxation agreement does not exist with a particular country – in particular by crediting foreign tax paid against German tax payable.

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