Please note: Our German tax advisory services are provided by Sesch Group GmbH Wirtschaftsprüfungsgesellschaft, based in Eschborn, Germany.
For detailed information about our services in Germany, please visit taxrep.de.
Income Tax Return
Individuals subject to income tax in Germany are generally required to file an annual income tax return. However, this does not apply insofar as only capital gains or wages were earned that were subject to capital gains or wage tax. In the case of wage income, the obligation to file a tax return only exists in special cases. This is the case, for example, if other income of more than EUR 410 was additionally earned or wages were received from several employers.
In many cases, the voluntary tax return is worthwhile, as a tax refund can be expected.
Corporate Income Tax Return
Corporate taxpayers in Germany are generally required to file an annual corporate income tax return. The corporate income tax return must show, among other things, the balance sheet result, corrections due to tax regulations and changes in equity.
Trade Tax Return
Corporate taxpayers and income taxpayers with income from business operations in Germany are generally required to submit an annual trade tax return. The trade tax return is based on the tax balance sheet result. The trade tax assessment amount is determined taking into account additions and deductions.
Value Added Tax Return
The Valuue added tax is usually an annual tax. Therefore, a VAT return is prepared for the calendar year. In addition, advance VAT returns may need to be prepared on a quarterly or monthly basis. If the tax for the previous calendar year amounted to more than EUR 7500, then a monthly VAT advance return and advance payment must be made.
Property Tax Return
Based on the reformed property tax and valuation law, new assessment bases for property tax purposes are to be determined for all of the approximately 36 million economic units of real property as of the calendar year 2025.
Inheritance and Gift Tax Return
Any acquisition subject to inheritance tax shall be reported in writing by the acquirer to the tax office responsible for the administration of inheritance tax within a period of three months from the date on which the acquirer became aware of the incurrence or occurrence of the obligation. The tax office may require anyone involved in an inheritance, a gift or a special-purpose donation to submit a declaration within a period to be determined by the tax office, irrespective of whether the person is liable for tax. The period must be at least one month. The tax office may require that a tax return be submitted on a form according to an officially determined model, in which the tax debtor must calculate the tax himself. The tax debtor shall pay the self-calculated tax within one month of submitting the tax return.
Frequently Asked Questions – German Tax Basics for U.S. Persons
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Yes. If you have a residence or regular stay in Germany, you are generally tax resident and may need to file a German income tax return depending on your situation.
If your presence exceeds 183 days in a year, tax residency may apply. Otherwise, Germany typically taxes only German-source income.
No. The U.S.–Germany Double Taxation Treaty coordinates taxing rights. Foreign tax credits or exemptions generally prevent double taxation.
Income Tax, Solidarity Surcharge, Church Tax (if applicable), Trade Tax (for businesses), Property Tax, and Inheritance/Gift Tax.
Both are progressive, but brackets and allowances differ. Germany also has separate mandatory social contributions alongside income tax.
Yes. U.S. citizens and Green Card holders must file annually with the IRS, reporting worldwide income, even when residing abroad.
The FEIE lets qualifying taxpayers exclude a portion of earned income for U.S. tax purposes. It does not affect your German tax calculation.
The FTC allows crediting German income taxes paid against your U.S. tax liability, subject to U.S. limitations.
Germany requires contributions to pension, health, unemployment, and long-term care. A U.S.–Germany totalization agreement coordinates coverage and avoids double contributions.
Only if you are registered as a member of certain religious communities. Otherwise, church tax does not apply.
Generally July 31 of the following year. With a tax advisor, an extended deadline to the end of February of the second following year may apply.
Annual wage statement (Lohnsteuerbescheinigung), investment and bank reports, insurance contributions, rental or business records, and proof of deductible expenses.
Most returns are filed electronically via ELSTER. Many filers use a tax advisor for cross-border issues.
Late filing can trigger penalties, interest, and assessments. Serious non-compliance can be prosecuted under German law.
Distributions may be taxable in Germany depending on treaty rules and account type. Contributions usually do not receive German tax deferral.
State pensions are generally taxable in Germany. The taxable portion depends on the year you start receiving benefits and increases over time.
Yes. FBAR (FinCEN 114) is required if thresholds are met. FATCA Form 8938 may also be required with your U.S. return.
Yes. Germany taxes German-source rental income. It must also be reported in the U.S.; the treaty and credits mitigate double taxation.
Germany imposes inheritance and gift tax based on residency and/or German-situs assets. U.S. estate and gift rules may separately apply.
Seek a tax advisor experienced in U.S.–German cross-border issues. For tailored assistance, please contact us.
Still have questions? Get in touch with our team.