CPCon Quick-Check – Expat Taxation

Quick-Check on most asked US-German Expat Taxation. How long do I have to pay taxes in Germany? In Germany you are only obliged to pay taxes if you ha...

Quick-Check on most asked US-German Expat Taxation.

How long do I have to pay taxes in Germany?

In Germany you are only obliged to pay taxes if you have taxable income in a given year. This is different than US law which requires a tax return of their citizens even in the case of no taxable income. • Do I have to file a tax return in Germany if working temporarily in Germany for a US Company? Yes, any person or entity having income, profits, or revenues needs to file a tax return in Germany, exemptions depending on tax class.

 
Are there advantages for Expats in Germany regarding the US-German Double Taxation Treaty?

In most cases is the answer yes. The basic idea of the US-German Double Taxation Treaty is to avoid double taxation. But, this treaty should just be the base of your consideration, there is further room for personalization of your individual tax case. German Tax Authorities do not consider the best solution for each individual. This remains in the responsibility of the individual taxpayers.

 

Being a German Expat in the US – do I have to file my tax return in Germany even if I am not working there?

Not necessarily, but we often recommend it if you have had tax deductible income in a given period. In this case filing your tax return in Germany could reduce your tax burden significantly.

 

What kind of German taxation do I face if I own property in the US / in Germany?

The taxation in Germany can be different from case to case. If you use the properties for your own purpose, there is normally no taxation issue. If the properties are leased out and generating profits, then taxation can be expected.

Please note: This is not a legal advice, each individual case must be examined professionally by a licensed German CPA. prev. Article next Article

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