Moving to Germany · Registration · Tax Office
Moving to Germany: Tax Registration, Tax ID and Tax Number
Anyone moving to Germany goes through several separate administrative and tax procedures. Municipal registration, the German tax identification number, tax number, ELSTER, tax registration and, where applicable, trade registration all serve different purposes. Which steps are required depends in particular on whether you are an employee, landlord, self-employed professional, business owner or entrepreneur.
Several procedures
Municipal registration, tax ID and tax registration are not the same thing
There is no single “tax registration” process when moving to Germany. Instead, several separate procedures interact.
Residence registration takes place with the municipal registration authority. The personal tax identification number is administered by the Federal Central Tax Office. A tax number, by contrast, is used by the competent local tax office for a specific tax procedure. Anyone starting a self-employed or commercial activity must also complete the tax registration of that activity or business.
Companies may additionally have to deal with the trade office, Commercial Register, Transparency Register and other authorities.
Typical process
The main steps after moving to Germany
Move into the residence
Document the actual move-in date and availability of the German residence.
Register the residence
Register with the locally competent municipal registration authority.
Confirm the tax ID
Continue using an existing German tax ID or wait for the initial assignment.
Register the activity
For self-employment or a trade, complete the tax registration and any additional registrations.
First tax return
Determine the start of German tax liability and identify relevant German and foreign income.
Municipal Registration
Residence registration is generally required within two weeks
A person who moves into a residence in Germany must generally register with the local registration authority within two weeks after moving in.
This is a registration-law procedure rather than a tax filing. In practice, however, it is important for a number of subsequent administrative processes, including the initial assignment of a German tax identification number.
- registration after moving into a German residence
- generally within two weeks
- handled by the local registration authority
- landlord confirmation is generally relevant
- the actual move-in date should be documented correctly
- tax residence must still be analyzed separately
Registration law and tax law
Municipal registration alone does not determine German tax liability
Municipal registration and tax residence are not identical concepts.
For German income tax purposes, the key question is in particular whether an individual establishes a residence or habitual abode in Germany. A German tax residence can exist even where the municipal registration position is incomplete or was documented late.
Conversely, a formal registration does not mean that all tax-residence questions can be answered solely by looking at the municipal register.
Practical point
For the first German tax year, it is useful to retain clear documentation of the move-in date, lease or purchase agreement, actual use of the residence, start of employment and, where relevant, periods spent abroad.
Tax Identification Number
Each individual receives only one German tax ID
The German tax identification number under Section 139b of the German Fiscal Code serves to identify an individual uniquely for German tax purposes.
When an individual is registered for the first time with a sole or principal residence in Germany, the municipal authority transmits the relevant data to the Federal Central Tax Office, which assigns the tax identification number.
Anyone who has already received a German tax ID keeps the same number. Moving back to Germany, getting married or changing address does not result in a new tax ID.
Use of the Tax ID
Where the personal tax ID is used
Payroll tax
Employers use the tax ID in particular for Germany's electronic payroll-tax procedure.
Tax return
The tax ID is used in the individual's German income tax return and in communications with the tax authorities.
Tax data reporting
Banks, insurers, pension institutions and other bodies may also use the tax ID for statutory tax-reporting procedures.
Tax Number
A tax number belongs to a tax procedure – not permanently to the individual
In addition to the personal tax ID, the tax office can assign or use a tax number. It serves to organize and identify a specific tax case within the competent tax office.
Depending on the facts, one individual can therefore have several tax-related numbers – for example one for the personal income tax case and another for a self-employed activity or business.
Income tax
An individual's German income tax assessment can be administered under a tax-office tax number.
Business tax number
When a self-employed activity begins, the activity must be registered for tax purposes and assigned to the relevant tax procedure.
Separate tax case
Companies such as a GmbH, UG or partnership are administered as separate tax cases.
Employees
An employee does not have to register a business merely because of the move
An individual who moves to Germany and works only as an employee does not have to complete a tax-registration questionnaire for a sole proprietorship merely because of the move.
Where there is a German employer, payroll tax is generally handled through German payroll. The personal tax ID is used for the electronic payroll-tax procedure.
A later German income tax return is a separate issue. Whether it is mandatory or voluntary depends on the individual's income and other circumstances.
Self-Employed & Business Owners
New business activities require additional tax registration
A person who begins a commercial business, permanent establishment or professional self-employed activity is subject to separate German tax-notification requirements.
The additional information required for taxation is submitted through the German tax-registration questionnaire. The deadline is generally one month after the relevant reportable event.
- tax registration questionnaire
- generally within one month
- electronic submission through ELSTER
- description of the activity
- estimated revenue and profit
- VAT information
- other business data where required
ELSTER
The correct tax-registration questionnaire depends on the legal form
The German tax authorities provide different ELSTER registration questionnaires for different activities and legal forms.
Trade or professional activity
For commercial, professional self-employed or agricultural activities carried on by an individual.
GmbH / UG
Newly formed corporations and cooperatives use a separate tax-registration questionnaire.
GbR / KG / Joint Activity
Partnerships and other joint arrangements use a separate registration questionnaire.
Trade Registration
Trade registration and tax registration are separate procedures
A person starting a commercial trade in Germany must consider the trade-law registration in addition to the tax registration.
Trade registration is generally filed with the competent municipality or trade authority. Genuine professional self-employed activities, by contrast, are generally not subject to ordinary trade registration.
The distinction between a trade and a professional activity can therefore affect several subsequent obligations.
Do not duplicate unnecessarily – but keep both procedures distinct
For a trader, the trade notification can also satisfy the basic tax notification requirement under Section 138(1) AO. The additional tax information required in the tax-registration questionnaire must nevertheless still be submitted.
Company Formation
A GmbH, UG or other company can require additional registrations
Corporate registration
Depending on the legal form, registration in the Commercial Register or another register may be required.
Beneficial owners
Many legal entities and registered partnerships must identify and report their beneficial owners.
Tax registration
Corporate formation and commercial registration do not replace the separate tax-registration procedure with the tax office.
Landlords & Other Income
Not every taxable activity is a business
A person moving to Germany who already has rental income, investments or other income sources must distinguish those activities from operating a business.
Rental income
Private rental activity is not a commercial trade merely because it generates taxable income. The rental income can nevertheless have to be reported in the German income tax return.
Investments
Interest, dividends, funds and capital gains can become relevant for German income tax after the move.
Foreign income
Foreign income can also become relevant once unlimited German tax liability begins.
Income Tax
Establishing German tax residence can trigger worldwide income taxation
A person who establishes a residence or habitual abode in Germany is generally subject to unlimited German income tax liability.
As a result, foreign income can also become part of the German tax analysis. Whether Germany actually taxes that income, exempts it or gives relief for foreign tax depends on the facts and, where applicable, the relevant double tax treaty.
The first German tax year should therefore not be reviewed solely on the basis of German payroll statements. Existing foreign income sources can also be relevant.
First German Tax Year
Income earned before the move can still matter
Where the move takes place during the year, the period before and after the commencement of unlimited German tax liability must be distinguished.
Certain foreign income earned before the move can still be relevant for determining the German tax rate even where Germany does not tax that income as part of the post-arrival worldwide income base.
Before the move
Foreign income can be relevant particularly for German progression purposes.
After the move
Once unlimited tax liability begins, worldwide income is generally included in the German tax analysis.
Tax treaty
Foreign income may additionally require application of the relevant double tax treaty.
International Cases
German registration is only the first layer
Anyone moving to Germany with foreign businesses, real estate, investments or employment relationships must consider the cross-border tax consequences after completing the German registration steps.
The German baseline obligations remain the same. The treatment of foreign income then depends on the country involved, the type of income and the applicable double tax treaty.
Ownership interests
Foreign companies can create German tax and reporting obligations after the owner moves to Germany.
Rental income
Foreign rental income must be classified under German rules and the applicable tax treaty.
Employment
Working from Germany for a foreign employer can create German payroll-tax and social-security issues.
Documentation
Documents that should be available after the move
Residence documents
Lease or purchase agreement, landlord confirmation, registration certificate and actual move-in date.
Personal information
German tax ID, previous German tax numbers, marital status and prior German tax returns where relevant.
Employment documents
Employment agreement, employer, work location and commencement date.
Business activity
Description of the activity, legal form, estimated revenue and profit, contracts and registration documents where relevant.
Foreign income
Documentation of foreign employment income, investments, real estate, pensions and businesses.
Foreign taxes
Tax returns, tax assessments and proof of payment can be required for treaty and foreign-tax-credit purposes.
Common Mistakes
What is frequently confused or overlooked after moving to Germany
Confusing the tax ID and tax number
The two numbers serve different purposes and are administered at different levels of the German tax system.
Registering only with the municipality
Starting a self-employed or commercial activity can require additional tax registration.
Treating trade registration as full tax registration
The trade notification does not replace the additional information required in the tax-registration procedure.
Ignoring foreign income
Once unlimited German tax liability begins, Germany can generally take worldwide income into account.
Assuming January 1 as the tax start date
For a mid-year move, the actual commencement of German tax liability must be determined.
Continuing foreign companies unchanged
A move by the owner or manager can create German tax and reporting consequences for foreign business structures.
Further Guidance
German Registration & Compliance
Frequently Asked Questions
Tax Registration after Moving to Germany
How quickly do I need to register my residence after moving in?
Do I automatically receive a German tax ID after registration?
Are the German tax ID and tax number the same?
Does everyone moving to Germany need to complete a tax-registration questionnaire?
How quickly must a new self-employed activity be registered for tax purposes?
Is the tax-registration questionnaire filed through ELSTER?
Does a professional self-employed person need a trade registration?
Does German tax liability begin on the municipal registration date?
Do I have to report foreign income after moving to Germany?
What is special about moving to Germany during the year?
German Tax Advice
Are you moving to Germany and want to set up the tax registration correctly?
We review the beginning of German tax liability and help determine the required tax registrations. Where self-employment, a trade, companies or foreign income sources are involved, we also consider business registration, company compliance and cross-border tax issues.
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