Your Tax Questions, Answered

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Our blog has basic information to get you started to understand tax items related to your situation.

When Are Tax Returns Due?

An income tax return has to be filed by July 31st for the previous year. If you work with an accountant you will automatically get an extension until the end of February of the following year, so in total there are 14 months to submit the tax return. There is no possibility to file for…


How Does Marriage Affect Taxes in Germany for Expats?

In most cases getting married is relevant for tax purposes. Married couples can file a joint income tax return (they can also opt to file separate returns and they can exercise this option from year to year). If one spouse is on a higher level of income than the other spouse it is beneficial to…


Are services in the private household tax-deductible?

There are some expenses in your private household, which could qualify for a tax benefit. You would have to pay someone for taking over jobs in your private household, which are very typical and normally done by yourself or a member of your family.


Application for Kindergeld

Children up to the age of 18 qualify for Kindergeld. Are your children still in education, they even qualify longer up to the age of 25. Currently the monthly payments are 250 € for each child. Do you already receive child benefits from another country and the amounts are smaller? In this case you would…


How the New US Tax Plan Impacts You

On December 20th, 2017, the United States Congress approved sweeping new changes to the US Tax Code. While many of the changes impact taxes for the 2018-2019 tax filing season, there are a number of changes that took effect even before. As an expat, understanding these upcoming changes is the key to help you better…


What is the Capital Gains Tax Rate in Germany?

There is no separate tax on capital gains. Capital gains are subject to income tax as regular income however: there is no capital gains tax on a property used as a private home there is no capital gains tax on a  property held for more than 10 years capital gains on shares are taxed at a…


How to Avoid Double Taxation

Germany has concluded Double Taxation Agreements with most countries around the world ( ). These Double Taxation Agreements determine which country has the right to levy tax on your income. These are the rules to make sure you are not taxed twice on the same income by providing a system of tax exemptions or tax credits…


When Are Taxes Payable in Germany?

Income tax is paid by employees on a monthly basis at the source through a withholding mechanism. Self employed individuals need to make a projection of their income for the tax year. Based on this projected figure, the tax office will work out a preliminary tax bill. This tax bill is then paid in four…