Germany–United States Cross-Border Tax
Germany–U.S. Tax Advice With One Primary Adviser
One primary adviser manages your entire Germany–U.S. tax case, personally assesses how German and U.S. tax rules interact with the applicable tax treaty, and develops the connected tax positions as one overall cross-border matter.
The same adviser remains involved across German and U.S. tax returns, international reporting obligations, foreign tax credits, deadlines and later follow-up and can also represent you personally before the relevant German tax authorities and the IRS.
Why our cross-border model is differentOne Case – Two Tax Systems
The key issues arise where German and U.S. tax rules interact
The United States does not base individual taxation solely on residence. U.S. citizenship and Green Card status can create ongoing U.S. tax filing and reporting obligations even for individuals who permanently live in Germany.
At the same time, German rules for investments, business entities, retirement arrangements, real estate and capital gains can differ significantly from their U.S. tax treatment.
German tax law, U.S. tax law, the Germany–U.S. tax treaty, foreign tax credits and international U.S. reporting obligations therefore need to be considered as parts of the same cross-border case.
What Makes TaxRep Different
One adviser understands both sides of the Germany–U.S. tax case
A single point of contact alone does not solve the substantive problem if the tax analysis is still performed independently by separate country advisers. What matters is whether the same adviser can personally assess the German treatment, the U.S. treatment and the treaty consequences.
German tax law, U.S. tax law and treaty rules are analyzed as one connected cross-border matter.
The connected German and U.S. tax positions are developed together before the relevant returns are filed.
Tax returns, FBAR, FATCA, foreign tax credits and deadlines are managed as one connected process.
The same adviser can remain involved when German tax authorities or the IRS raise questions later.
Typical Situations
For clients with tax connections to Germany and the United States
U.S. citizens and Green Card holders with German residence, income, investments, retirement arrangements or businesses.
Moving to Germany, moving to the United States or returning with investments, ownership interests and retirement assets.
German and U.S. entities, LLCs, corporations, permanent establishments, management and ownership interests.
Investments, real estate, inheritances, gifts, trusts and wealth transfers involving both countries.
Services
Six Core Germany–U.S. Tax Areas
From individual tax residency to business structures, we treat German tax, U.S. tax compliance, treaty provisions and international reporting obligations as parts of one connected cross-border case.
Tax Residency and Individual Tax Liability
Integrated assessment of German and U.S. tax residency, individual tax liability and taxing rights under domestic rules and the tax treaty.
- Residence and habitual abode
- U.S. citizenship and Green Card status
- Treaty residency and tie-breaker rules
- Unlimited and limited German tax liability
- Foreign tax credits and exemptions
- Tax returns in both countries
Moving to Germany, Leaving Germany and Returning
Tax planning and compliance for relocations between Germany and the United States, taking both tax systems into account.
- Beginning and end of tax residency
- Transition and split-year situations
- German exit taxation
- U.S. residency and Substantial Presence Test
- Investment and asset structure
- Tax returns for the relocation year
Investments, Funds and Retirement Arrangements
Integrated analysis of German and U.S. investments and retirement arrangements with both tax systems considered from the outset.
- Stocks, bonds and brokerage accounts
- Investment funds and PFICs
- German investment taxation
- 401(k), IRA and Roth IRA
- German pension and retirement arrangements
- Capital gains and withholding taxes
U.S. Tax Returns and International Reporting
Current and late U.S. tax compliance is aligned with the German tax treatment of the same underlying income, assets and entities.
- Form 1040 and other U.S. returns
- FBAR
- FATCA and Form 8938
- Forms 3520 and 3520-A
- Forms 5471, 8865 and 8858
- Late filing and compliance remediation
Companies, LLCs and Ownership Interests
Integrated tax analysis of German and U.S. business entities and their owners.
- LLCs, corporations and German entities
- Entity classification
- Permanent establishments and management
- Dividends and ownership income
- Transfer pricing
- Withholding tax and treaty relief
Inheritances, Gifts and Trusts
Cross-border wealth transfers assessed under both German and U.S. tax rules.
- German inheritance and gift tax
- U.S. estate and gift tax
- German and U.S. real estate
- Trusts and foreign asset structures
- Form 3520 and information reporting
- Treaty and foreign tax credit issues
Two Systems – One Tax Position
German and U.S. tax positions are developed together before filing
Do not prepare the two returns independently
Income, withholding taxes, foreign tax credits, treaty positions and reporting obligations are allocated consistently across both countries before the relevant returns are filed.
Classify entities consistently across both systems
For LLCs, corporations and German entities, we consider U.S. entity classification, German tax classification, ownership reporting, permanent establishments, withholding taxes and ongoing compliance together.
One Continuous Process
From the initial facts through assessments and tax authority questions
One Intake
We collect citizenship, residence, travel days, income, assets, entities, accounts, investments and prior filings once for the overall cross-border case.
Cross-Border Analysis
German tax liability, U.S. tax, treaty rules, foreign tax credits and international reporting obligations are analyzed together.
Filing and Deadlines
German and U.S. tax returns, information filings and supporting documentation are aligned substantively and across the relevant filing deadlines.
Follow-Up and Representation
Tax assessments, foreign tax credits, questions from German tax authorities or the IRS, supplemental filings and required amendments remain part of the same case.
Personal Tax Authority Representation
The same adviser remains involved when tax authorities raise questions
Germany–U.S. tax matters frequently continue after the original filings have been submitted. A German tax office may request a U.S. assessment or additional supporting documentation. The IRS may ask for information regarding German income, accounts, entities or investments.
A later tax assessment in one country can also change the foreign tax credit or require an amendment in the other country.
Because the adviser who developed the original Germany–U.S. tax position already understands these interactions, the same adviser can continue the matter personally when later authority questions arise.
Tax Knowledge
Germany–U.S. Tax Issues Explained in Detail
Our tax knowledge section provides more detailed guidance on U.S. tax liability, relocations, investments, PFICs, reporting obligations, businesses, retirement arrangements and estates.
Explore Germany–U.S. Tax KnowledgeFrequently Asked Questions
Germany–U.S. Cross-Border Tax Advice
Do U.S. citizens living in Germany still have to file a U.S. tax return?
U.S. citizens generally remain subject to U.S. federal income tax filing requirements even when they permanently live in Germany. Whether U.S. tax is ultimately payable depends on income, foreign tax credits, available exclusions, treaty provisions and the individual circumstances.
Will I have different advisers for Germany and the United States?
Your Germany–U.S. case is substantively managed by one primary adviser who personally assesses the German tax treatment, the U.S. tax treatment and the relevant treaty and foreign tax credit issues.
Can TaxRep represent me before German tax authorities and the IRS?
Depending on the specific procedure and required authorization, the primary adviser can also continue the matter personally before the relevant German tax authorities and the IRS. This helps preserve the original cross-border tax position throughout the follow-up process.
When is an FBAR required?
An FBAR may be required when the aggregate maximum value of foreign financial accounts exceeds the applicable threshold during the calendar year. German bank accounts and brokerage accounts may be included for this purpose.
Why can German investment funds be problematic for U.S. persons?
Many non-U.S. investment funds can be treated as Passive Foreign Investment Companies, or PFICs, for U.S. tax purposes. This may result in additional reporting, complex calculations and unfavorable U.S. tax rules.
How is a U.S. LLC taxed in Germany?
German tax treatment does not automatically follow the U.S. classification. The German classification depends in particular on the legal characteristics of the LLC and its comparability with German legal forms. The entity should therefore be analyzed under both German and U.S. tax rules.
Do you also advise on moving from Germany to the United States?
Yes. Relevant issues can include the timing of the move, remaining German tax exposure, German exit taxation, ownership interests, investments, retirement assets, U.S. residency and the tax filings required for the transition year.
Contact
One adviser for your entire Germany–U.S. tax case.
In the initial consultation, we review your German and U.S. tax position, treaty issues, filing obligations, international reporting requirements and the appropriate next steps for your cross-border case.