Blog-Archiv

This article is intended for individuals who are tax resident in Germany and hold investments from the United States or the United Kingdom as private assets. Nationality is generally not relevant. The same principles apply, for example, to a German, US or British citizen who lives in Germany and is tax resident there. The guide covers ordinary investments held by private investors, especially funds held through a standard securities account. It does not cover business assets, significant corporate shareholdings with entrepreneurial influence or complex fund structures.

German Federal Fiscal Court (BFH), Judgment of April 23, 2026 – X R 29/22

In a decision of considerable importance for cross-border tax matters, Germany’s Federal Fiscal Court (Bundesfinanzhof – BFH) held that disability compensation paid by the United States government may qualify for tax exemption in Germany. Particularly noteworthy is the Court’s conclusion that Section 3 No. 6 of the German Income Tax Act (Einkommensteuergesetz – EStG) is not limited to benefits financed from German public funds.