Situation
Swiss residence · German home · Tax treatyLiving in Switzerland with a Home in Germany
If you live in Switzerland but continue to own or rent a home in Germany, you may still have a German residence for tax purposes, even if your centre of vital interests is in Switzerland. The first step is to assess German residence under Section 8 of the German Fiscal Code (AO). If you are also resident in Switzerland, residence under the Germany–Switzerland tax treaty must then be determined.
Overview
Two questions must be assessed separately
A person may continue to have a residence in Germany under German domestic tax law, even though their centre of vital interests has moved to Switzerland.
The first question is therefore whether the German home is still held in circumstances indicating that it will be retained and used.
Only then does the second question arise: if Germany and Switzerland both consider the person to be tax resident, in which country is that person resident for the purposes of the Germany–Switzerland tax treaty?
The same situation from the Swiss perspective
TaxRep Switzerland covers Swiss residence, the centre of vital interests from the Swiss perspective, and the consequences for Swiss tax reporting.
Assessment Framework
German domestic residence and treaty residence are different concepts
The tax treaty does not determine whether a residence exists under German domestic law. That question is assessed first under German tax law. The treaty then coordinates taxing rights where both countries consider the person resident.
- Section 8 AO: is there a German residence?
- Section 1 of the German Income Tax Act (EStG): unlimited tax liability?
- Swiss law: is there Swiss tax residence?
- Article 4 of the tax treaty: where is treaty residence?
Home
Is there suitable residential accommodation in Germany?
Availability
Can the person actually use the home for their own purposes?
Germany
Does the home continue to constitute a German residence for tax purposes?
Tax treaty
If dual residence exists, the treaty tie-breaker rules must be applied.
German Residence
A German home may preserve German tax residence while you live in Switzerland
Deregistration with the registration authority does not automatically end German tax residence. Nor does the assessment depend solely on the country in which you spend more days.
What matters is the actual situation of the home: in particular, whether it is usable, whether it is at your disposal, and the circumstances in which it is retained.
Home available at any time
A furnished home that is actually available for use may constitute a German residence.
Long-term rental to a third party
If your own use is excluded both legally and in practice, this weighs against having a residence there.
Family home
If your spouse or family remains in the German home, this may be particularly relevant to domestic and treaty residence.
Understand the general German residence rules
The following guides explain the requirements concerning a home, having it at your disposal, and retaining and using it under Section 8 AO.
Residence in Germany for tax purposes
The general requirements for a residence under Section 8 AO.
Explore the basicsGerman residence after moving abroad
When a home in Germany continues to constitute a residence after a move abroad.
Read articleDual Residence
When Germany and Switzerland both consider you resident
Dual residence may arise if you continue to have a residence under German law while also being tax resident in Switzerland.
Treaty residence is then determined using the criteria set out in the tax treaty. This assessment is central to the cross-border treatment between Germany and Switzerland.
Permanent home
First, establish in which country a permanent home is available.
Centre of vital interests
If permanent homes are available in both countries, compare personal and economic relations.
Habitual abode
If the centre of vital interests cannot be determined, the pattern of actual stays may become relevant.
Further criteria
Nationality and, where necessary, a mutual agreement procedure may then follow.
Explore the treaty tie-breaker assessment
The full assessment is explained in Treaty Residence with Homes in Germany and Switzerland .
Common Cases
Which living arrangements are particularly relevant?
An owned apartment remains furnished
The apartment may constitute a German residence even if you mainly live in Switzerland, provided it remains actually available to you.
A home is rented out long term
If your own use is excluded for the duration of the tenancy, this generally weighs against the home being at your disposal.
Your family remains in Germany
The family home may be relevant both to German residence and to the centre of vital interests.
A small second home for visits
Even a small home may be relevant for tax purposes if it remains permanently available for your own residential use.
A room in your parents’ home
Occasional overnight stays do not automatically establish residence. The decisive issue is whether the room is actually at your own disposal.
Your centre of vital interests is clearly in Switzerland
A German residence may still exist under domestic law. Treaty residence must be determined separately.
Consequences
What follows from the domestic and treaty residence assessment?
Establishing residence is only the first step. The result then affects the scope of German taxation and the German tax return.
Continuing unlimited tax liability under German domestic law
If a German residence exists, unlimited German income tax liability generally continues under domestic law.
Explore the German rulesResidence in Switzerland for treaty purposes
The treaty may limit Germany’s taxing rights over particular income, despite unlimited tax liability under German domestic law.
Explore treaty residenceDo you intend to give up German residence completely?
If so, the actual availability of the German home and your ability to use it must be carefully assessed.
Explore giving up residenceHow is treaty residence reflected in the German tax return?
Once the residence assessment is complete, its outcome must be reflected correctly in the German tax return.
Explore Tax ReturnsFurther Reading
Treaty residence and German tax reporting
Alongside the general German residence rules, the treaty tie-breaker assessment determines your residence for cross-border purposes. The result also guides your German tax reporting.
Treaty residence with homes in Germany and Switzerland
Permanent home, centre of vital interests, habitual abode, nationality and the consequences under the treaty.
Read articleGerman tax returns when treaty resident in Switzerland
Guidance on reporting your income and applying the relevant treaty treatment in the German tax return.
Explore Tax Returns & Reporting ObligationsAssess the specific circumstances of your German home
Retained homes, family homes, second homes, continuing residence after departure and giving up residence are covered in the general German residence guides. These rules provide the starting point for the cross-border assessment.
Related Topics
Your situation in the broader context
Residence & Relocation
Residence, treaty residence and changes of residence.
Explore topicMoving from Germany to Switzerland
Departure, the end of German tax liability and continuing German tax connections.
View situationGerman residence after moving abroad
Assessment under Section 8 AO where a home is retained in Germany.
Read articleTax Returns & Reporting Obligations
German tax reporting in cross-border residence situations.
Explore topicGermany–Switzerland Tax Advice
Do you live in Switzerland and still have a home in Germany?
We assess, from the German tax perspective, whether the home continues to constitute a German residence, whether unlimited tax liability therefore continues, and how residence under the Germany–Switzerland tax treaty is determined if you are also resident in Switzerland.
Request a Review of Your Residence Position