Germany–Switzerland · Residence
Keeping a Home in Germany After Moving to Switzerland?
If you move to Switzerland but keep an apartment or house in Germany, you may still have a German residence for tax purposes. The decisive issue is not just where your centre of vital interests is located, but whether the German home actually remains available for your own use. A special provision of the Germany–Switzerland double taxation agreement must also be considered.
Section 8 AO
A German home can maintain unlimited German tax liability
Under section 8 of the German Fiscal Code (Abgabenordnung, AO), a person has a residence for tax purposes wherever they maintain a dwelling in circumstances indicating that they will retain and use it.
A person can therefore have a residence in Switzerland and, at the same time, another residence in Germany for tax purposes. A German residence does not require the person's centre of vital interests to be located in Germany.
A second or secondary home can also be sufficient. What matters is whether the property is objectively suitable as a dwelling and is actually available to the taxpayer for their own residential use.
Retaining a home
When does a German home indicate continuing residence for tax purposes?
The overall factual circumstances are decisive. No single administrative or contractual step determines the outcome on its own.
Available whenever needed
The home is generally available to the taxpayer whenever they wish to use it for a residential stay.
Furnished and ready to live in
A furnished home that remains fully usable may indicate that it has been retained as more than just an investment asset.
Personal use
Regular or even occasional use of a genuinely residential nature can support the existence of a residence. There is no fixed minimum number of days of use.
Personal belongings remain
Personal furnishings, clothing and other belongings may indicate that the property continues to be kept as a home for the taxpayer's own use.
The family uses the home
If a spouse or family remains in Germany, a family home that the taxpayer continues to share can be a particularly strong indication of a German residence.
Available for a return
Keeping the former home unchanged so that it can be used during visits or on a later return may indicate that the residence has been retained.
Important
There is no general minimum number of days
Residence under section 8 AO does not require the German home to be used for, say, 30, 60 or 183 days per year.
What matters is whether the property is objectively retained as the taxpayer's own home, whether residential use is possible and whether such use can be expected in light of the overall circumstances.
- No general 183-day threshold under section 8 AO
- More than one residence for tax purposes is possible
- A second home can be sufficient
- The centre of vital interests need not be in Germany
- Actual availability for use is particularly important
- The overall circumstances of the individual case are decisive
Giving up residence
When German property no longer creates a residence for tax purposes
Ownership of an apartment or house in Germany does not, by itself, create a residence for tax purposes. The decisive issue is whether it is actually available for the owner's personal use.
Long-term letting
If the home is let to a third party on a long-term basis and is therefore no longer available to the owner for personal use whenever needed, this will generally indicate that residence in that property has ended.
Selling the property
If the former home is sold and actually given up, it will generally no longer constitute a German residence for tax purposes.
No longer available for personal use
If the home is made available to someone else on terms that mean it is no longer available to the person who has moved abroad as their own accommodation whenever needed, they may cease to maintain a dwelling there for tax purposes.
Held solely as an asset
If, after moving abroad, a property is retained solely for sale or long-term letting, residence may have ended even though ownership continues.
Short-term letting
Temporary letting does not necessarily end residence
The position is more complex where the German home is let or sublet only for a short period while the taxpayer is living in Switzerland.
If there is a specific intention to resume personal use of the home in the near future, a German residence may be considered to continue despite the temporary letting.
Letting the property is therefore not conclusive on its own. The duration, contractual terms, termination rights and intended future personal use should be considered together.
The family home
If the family stays in Germany, the risk of continuing residence increases significantly
The family home plays a particularly important role for married couples and registered civil partners. If a spouse continues to live in Germany and the couple is not permanently separated, this will generally indicate that the family home also remains a residence of the spouse who has moved to Switzerland.
This is particularly relevant if the person continues to use the German home during stays in Germany. Living and working in Switzerland for most of the year does not automatically end German residence.
Although residence must be assessed separately for each person, the family's actual living arrangements are an important factor in the tax analysis.
Double taxation agreement
German domestic-law residence and Swiss treaty residence can coexist
If a person has a residence in both Germany and Switzerland under the respective domestic laws, Article 4 of the Germany–Switzerland tax treaty determines residence for treaty purposes.
Where a permanent home is available in both countries, a key question is which country the person has closer personal and economic relations with: their centre of vital interests.
- Permanent home available in Germany?
- Permanent home available in Switzerland?
- Personal ties
- Economic ties
- Habitual abode
- Nationality, where relevant
A special Germany–Switzerland rule
Article 4(3) can allow Germany to continue taxing despite Swiss treaty residence
The Germany–Switzerland tax treaty contains a special rule: even if the tie-breaker rules treat a person as resident in Switzerland, Germany may, under certain conditions, continue to tax them under the rules applicable to unlimited tax liability.
This is particularly relevant if the person continues to have a permanent home available in Germany or spends at least six months there during the calendar year.
Swiss tax is then taken into account under the treaty's special relief provisions. This German overriding taxation rule makes retaining a home in Germany particularly sensitive when moving to Switzerland.
Three levels of analysis
Domestic-law residence, treaty residence and taxing rights require separate assessments
| Assessment | Question | Possible consequence |
|---|---|---|
| Section 8 AO | Does a home remain available in Germany for personal use whenever needed? | German residence for tax purposes and, in principle, unlimited German tax liability. |
| Swiss law | Does the move also give rise to unlimited tax liability in Switzerland? | Possible dual residence under domestic law. |
| Article 4(2) of the treaty | Which country is the person treated as resident in for treaty purposes? | Tie-breaker rules based on permanent home, centre of vital interests, habitual abode and nationality. |
| Article 4(3) of the treaty | Despite Swiss treaty residence, is there a permanent home in Germany or a stay of at least six months during the calendar year? | Possible additional German taxing rights. |
| Individual categories of income | Which country may tax employment income, property income, investment income or business profits? | The relevant treaty provisions for each category must also be applied. |
Practical preparation
Giving up German residence requires clear factual arrangements
Decide how the German home will be used
First decide whether the home will continue to be used personally, be let on a long-term basis or be sold.
Actually end its availability for personal use
If German residence is intended to end, the home should generally no longer be available to the taxpayer as their own accommodation whenever needed.
Document the contractual arrangements
Keep clear records of the tenancy agreement, transfer of possession, sale, handover of keys and other relevant circumstances.
Consider the family's circumstances
If a spouse or children remain in Germany, residence must be assessed separately and with particular care.
Document the Swiss living arrangements
The tenancy agreement or ownership, actual move-in date, residence permit and actual use of the Swiss home should be consistent.
Assess the treaty consequences before moving
Particularly if a German home will remain available, clarify before the move whether Article 4(3) of the treaty could result in continuing German taxation.
Common scenarios
What different uses of the property can mean in practice
The home remains vacant and furnished
If the former home remains available whenever needed and is kept for the taxpayer's own stays, this strongly indicates continuing German residence.
The home is let on a long-term basis
If the owner cannot use the property personally during the tenancy, this generally indicates that it no longer constitutes their residence.
A spouse remains in Germany
If the family home continues to be used during visits, there is a significant risk that German residence will continue.
The home is being marketed for sale
If the home remains available for personal use until it is actually sold, residence may continue until the property is effectively given up.
Occasional hotel stays
Staying in hotel rooms or other accommodation for short periods does not generally, on its own, establish a German residence.
Visiting relatives
Regular visits to parents, friends or other relatives do not automatically create a residence, provided the person does not actually maintain a home of their own there.
Consequences
Why residence matters so much for tax purposes
Worldwide income
Continuing German residence generally means that unlimited income tax liability continues under German domestic law. In principle, this can bring worldwide income, as well as German-source income, within the German tax assessment.
Double taxation agreement
The treaty limits German taxation and allocates taxing rights between the two countries. Under the treaty with Switzerland, the German overriding taxation rule must also be examined.
German tax returns
Continuing residence may mean that German income tax returns with more extensive disclosures remain necessary.
Planning the move
The decision to keep, let or sell a German home should therefore form part of the tax planning before moving abroad.
Further reading
Related topics
Frequently asked questions
Keeping a German home after moving to Switzerland
Can I keep my home in Germany after moving to Switzerland?
Do I have to use the German home for 183 days to have a residence there?
Is deregistering in Germany enough to end my residence?
Does letting my German home end my residence there?
What if my spouse stays in Germany?
Can I be resident in Switzerland for tax treaty purposes and still have a German residence?
Does Swiss treaty residence automatically prevent German taxation?
Can I keep German property without having a German residence?
Germany–Switzerland tax advice
Planning to keep a German home after moving to Switzerland?
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