Insights · German Tax
German tax knowledge for individuals
Practical guidance on German income tax, investments, real estate, pensions, shareholdings, inheritances and gifts, as well as cross-border tax issues involving moves to or from Germany and foreign-source income.
German Income Tax
Personal tax questions go far beyond the annual tax return
The German tax position of an individual depends in particular on residence, habitual abode, the type of income received, the individual's asset structure and any international connections.
In addition to employment income, relevant categories may include investment income, rental income, pensions, self-employment income, company shareholdings and capital gains. Foreign-source income can add another layer because tax treaties and foreign tax credit or exemption rules may need to be considered.
The following articles address selected topics from a German tax perspective and highlight areas where a more detailed case-specific analysis is often required.
Topic Overview
German tax topics for individuals
Guidance on income, investments, retirement planning and private transfers of wealth.
Pension taxation in Germany
Taxable pension share, pension allowance, statutory pensions, occupational pensions and foreign retirement income.
Read articleSale of shareholdings under Section 17 EStG
German tax treatment of the sale of substantial shareholdings in corporations.
Read articleReporting inheritances and gifts
Reporting to the German tax authorities, the three-month period, exceptions and information required under Section 30 ErbStG.
Read articleGerman CFC taxation under the AStG
The relevance of foreign corporations for shareholders and investors who are tax resident in Germany.
Read articleMoving to Germany
Commencement of German tax residence, worldwide income, the year of arrival and international tax coordination.
Read articleCoordinating German and U.S. tax returns
Interaction between German income tax, continued U.S. filing, the Germany–U.S. tax treaty and foreign tax credits.
Read articleInvestments & Shareholdings
Brokerage accounts, company interests and international investments
Interest, dividends, investment funds and capital gains can be subject to different German tax rules.
Substantial corporate shareholdings may fall within Section 17 EStG and the German partial-income system.
Interests in foreign corporations may create additional questions under German CFC rules and applicable tax treaties.
Existing investments and corporate shareholdings should be reviewed before a change of tax residence where possible.
Retirement
Pensions and foreign retirement accounts
For foreign pensions and retirement accounts, the tax treatment in the country of origin is generally not sufficient to determine the German result. For individuals resident in Germany, the applicable German tax rules and any relevant tax treaty must also be considered.
German pension taxation
Statutory pensions, occupational pensions and private retirement arrangements may each be subject to different rules.
- Taxable share
- Pension allowance
- Occupational pensions
- Private retirement arrangements
U.S. retirement accounts for German residents
401(k)s, Traditional IRAs and Roth IRAs need to be analyzed under German tax law and the Germany–U.S. tax treaty.
- 401(k)
- Traditional IRA
- Roth IRA
- U.S. pension plans
Germany–United States
Guidance for U.S. persons and individuals with U.S. assets
U.S. person in Germany
Form 1040, FBAR, Form 8938, PFICs, German tax residence and coordination of both tax systems.
Read articleGerman bank account as a U.S. person
U.S. reporting requirements for German bank accounts, brokerage accounts, interest and investments.
Read articleU.S. real estate on a German tax return
German treatment of rental income, depreciation, treaty rules and the sale of U.S. real estate.
Read article401(k) with German residence
German taxation of 401(k) plans, distributions and treaty classification.
Read articleTraditional IRA in Germany
German treatment of Traditional IRAs, distributions and treaty classification.
Read articleRoth IRA in Germany
German treatment of Roth IRAs, contributions, conversions and distributions.
Read articleInternational Tax
Moving to Germany, leaving Germany and foreign income
In a cross-border situation, the first question is whether and to what extent Germany has taxing rights over the individual and the relevant income.
In addition to unlimited or limited German tax liability, the applicable tax treaty, treaty residence and the specific category of income may need to be analyzed.
A move to or from Germany can also affect the taxation of investments, company shareholdings, real estate and retirement assets. For this reason, tax analysis before the actual move can be particularly valuable.
Cross-Border
German tax matters involving Switzerland or the United States
In cross-border individual cases, we analyze the German tax position together with the foreign-country rules and the applicable tax treaty.
Germany–Switzerland
Typical issues include residence, cross-border employment, employment income, real estate, investments, pensions and departure from Germany.
Germany–Switzerland tax adviceGermany–United States
U.S. persons living in Germany often need to coordinate German tax obligations, continued U.S. filing and international information reporting at the same time.
Germany–U.S. tax adviceFrequently Asked Questions
German tax questions for individuals
When am I subject to unlimited German income tax?
Do I have to report foreign income in Germany?
Are foreign brokerage accounts taxable in Germany?
How are foreign pensions taxed in Germany?
Should a move to Germany be reviewed for tax purposes in advance?
Can you coordinate German and U.S. tax returns?
Tax Advice
Discuss your German tax situation
Whether you need a German tax return, advice on investments, real estate, pensions, company shareholdings or a cross-border matter, the initial consultation is used to identify the relevant issues and define the appropriate scope of work.