Taxes for expats in Germany

Cheryl Moderator

Member since 15 October 2018

CherylModerator21 May 2025 05:32:50

13444

Hello everyone,

When settling in and living in Germany, you will also need to navigate the local tax system. In order to help newcomers and expats ease their tax-related experience, we would like to invite you to share your experience.

What are the taxes applicable to expats in Germany?

Have there been any recent changes in tax regulations that expats should know about?

Are there any local tax incentives or agreements with your home country?

Have you come across any unexpected or unusual local tax?

What do you wish you had known earlier about taxes in Germany?

Share your insights and experience.

Thank you for your contribution.

Cheryl
海角乱伦 Team

beppi Germany/Singapore Expert

Member since 08 August 2010

Germany & Singapore Expert

beppiGermany/Singapore Expert21 May 2025 06:46:58

15463

An estimated (and high) amount of income tax is deducted at source by your employer. The exact amount is calculated by the tax authority ("Finanzamt") after a (in most cases compulsory) yearly tax declaration - and you might get a refund or have to pay more then.

Taxation rules in Germany are among the most complex on earth - and declaring your income wrongly is a criminal offense . It is thus recommendable for any expat, who is not fluent in (buerocratic) German and has a tolerance for tedious procedures, to engage a tax advisor for the declaration.

Things get especially complicated when foreign aspects are involved (and you HAVE TO declare any foreign income or deductable expense - whether they are relevant or not is decided by the German tax authority, not you!).

You will be taxed the same as a German in your situation, as there are no special taxes for expats. Whether you also have to pay tax in your home country is decided by the regulations there, and maybe a bilateral tax treaty with Germany (if one exists). It is far moe likely that you are double-taxed than that you save taxes due to being international. The "183 days rule" (according to which you pay no tax up to 183 days per year in the country) is largely a myth and definitely does not apply to Germany!