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Ab 2026 können Finanzämter Steuerbescheide ohne Ihre Einwilligung digital bereitstellen – zum Beispiel im ELSTER-Postfach oder über die Schnittstelle Ihres Steuerberaters. Der digitale Bescheid gilt dann als zugestellt, sobald er dort abrufbar ist – ab diesem Zeitpunkt läuft die Einspruchsfrist.

The headline sounds paradoxical, but it reflects how loosely the word “pension” is used in everyday English. Many people call any old-age payment a “pension,” often assuming it is paid for life or at least for a fixed period. For tax analysis in both the United States and Germany, however, you must distinguish between different categories of benefits because the labels, reporting, and tax rules differ.

US citizens often complain that they are discriminated against in terms of taxation when they come to Germany and take up residence there. In some cases, Germany is then accused of double taxation as the country of residence. The argument is: “The income has already been taxed in the US.” This argument fails to recognize the real reasons for what is sometimes indeed double taxation.

In the US, tax-beneficial retirement plans can be inherited. This is not the case with comparable tax-beneficial company or private pension plans in Germany. Nevertheless, income from US plans are taxable in Germany if the beneficiary is resident in Germany.

In den USA können steuerbegünstigte Altersvorsorgepläne vererbt werden. Dies ist bei vergleichbaren Plänen der steuerlich begünstigten betrieblichen und privaten Altersvorsorge in Deutschland nicht der Fall. Gleichwohl müssen Erträge aus diesem Plan in Deutschland versteuert werden, wenn der Begünstigte in Deutschland ansässig ist.

Payments from US pension plans must be taxed in Germany if the beneficiary is deemed to be resident in Germany. This applies to both US citizens and Germans who have their main residence in Germany. Until now, the German taxation regime for payouts from these plans was very favorable. This has changed fundamentally as of January 1, 2025.

Auszahlungen aus US-Altersvorsorgeplänen müssen in Deutschland besteuert werden, wenn der Leistungsempfänger in Deutschland als ansässig gilt. Das gilt sowohl für US-Staatsbürger aber auch Deutsche, die in Deutschland ihren Hauptwohnsitz haben. Bisher war das deutsche Besteuerungsregime für Auszahlungen aus diesen Plänen sehr vorteilhaft. Dies hat sich zum 1. Januar 2025 grundlegend geändert.

Germany has an inheritance and gift tax that addresses inheritances and gifts in respect of taxation in a national and international context. This includes the transfer of assets from tax residents and non-residents. This is part 4 of a series of articles.

Germany has an inheritance and gift tax that addresses inheritances and gifts in respect of taxation in a national and international context. This includes the transfer of assets from tax residents and non-residents. This is part 3 of a series of articles.

Germany has an inheritance and gift tax that addresses inheritances and gifts in respect of taxation in a national and international context. This includes the transfer of assets from tax residents and non-residents. This is part 2 of a series of articles.

So far, withdrawals to persons who are tax resident in Germany were only taxed on the difference between the withdrawal and attributable contributions. If the recipient of the payment had reached the age of 60 and the plan had been in existence for more than 12 years, only half of the difference was taxed.

Germany has an inheritance and gift tax that addresses inheritances and gifts in respect of taxation in a national and international context. This includes the transfer of assets from tax residents and non-residents. If the taxable persons are resident in Germany, the worldwide assets are subject to this tax (as an unlimited tax liability). In the case of non-residents, generally only German assets are taxed (as a limited tax liability), although there are exceptions, particularly for tax residents who transfer their domicile abroad. In a series of articles, we will describe the scenarios of cross-border inheritances and gifts from a German perspective.

Grenzüberschreitende Sachverhalte werden von der deutschen Erbschaftsteuer erfasst, wenn ein Anknüpfungspunkt in Deutschland besteht. Auf der personellen Ebene ist dies der Fall, wenn entweder der Erblasser oder der Empfänger (Erbe, Vermächtnisnehmer, Pflichtteilsberechtigte) im Inland ansässig sind. Sachlich ist der Anknüpfungspunkt im Inland belegenes Vermögen.

Deutschland hat eine Erbschaft- und Schenkungsteuer, die Erbschaften und Schenkungen im nationalen und internationalen Kontext einer Besteuerung unterwirft. Diese umfasst die Vermögensübertragung von Steuerinländern und Steuerausländern. Sofern die steuerpflichtigen Personen im Inland ansässig sind, unterliegt das weltweite Vermögen im Erbfall der Steuer (unbeschränkte Steuerpflicht). Bei Steuerausländern wird im Regelfall nur das deutsche Vermögen besteuert (beschränkte Steuerpflicht), wobei es insbesondere für Steuerinländer, die ihre Ansässigkeit in das Ausland verlegen, Ausnahmen gibt. Wir werden in einer Serie von Artikeln die Szenarien grenzüberschreitender Erbfälle und Schenkungen aus deutscher Sicht beschreiben. Dies ist der dritte Teil.

Deutschland hat eine Erbschaft- und Schenkungsteuer, die Erbschaften und Schenkungen im nationalen und internationalen Kontext einer Besteuerung unterwirft. Diese umfasst die Vermögensübertragung von Steuerinländern und Steuerausländern. Sofern die steuerpflichtigen Personen im Inland ansässig sind, unterliegt das weltweite Vermögen im Erbfall der Steuer (unbeschränkte Steuerpflicht). Bei Steuerausländern wird im Regelfall nur das deutsche Vermögen besteuert (beschränkte Steuerpflicht), wobei es insbesondere für Steuerinländer, die ihre Ansässigkeit in das Ausland verlegen, Ausnahmen gibt. Wir werden in einer Serie von Artikeln die Szenarien grenzüberschreitender Erbfälle und Schenkungen aus deutscher Sicht beschreiben. Dies ist der zweite Teil.

Deutschland hat eine Erbschaft- und Schenkungsteuer, die Erbschaften und Schenkungen im nationalen und internationalen Kontext einer Besteuerung unterwirft. Diese umfasst die Vermögensübertragung von Steuerinländern und Steuerausländern. Sofern die steuerpflichtigen Personen im Inland ansässig sind, unterliegt das weltweite Vermögen im Erbfall der Steuer (unbeschränkte Steuerpflicht). Bei Steuerausländern wird im Regelfall nur das deutsche Vermögen besteuert (beschränkte Steuerpflicht), wobei es insbesondere für Steuerinländer, die ihre Ansässigkeit in das Ausland verlegen, Ausnahmen gibt. Wir werden in einer Serie von Artikeln die Szenarien grenzüberschreitender Erbfälle und Schenkungen aus deutscher Sicht beschreiben.

In the USA, the Limited Liability Company (LLC) is regarded as a form of company that is easy to set up, flexible to handle and yet offers personal limitation of liability for its shareholders (members). Special features must be observed if its shareholders are resident in Germany. Some of the special features are described in two articles.

In the USA, the Limited Liability Company (LLC) is regarded as a form of company that is easy to set up, flexible to handle and yet beneficially offers personal limitation of liability for its shareholders (members). Special features must be observed if its shareholders are resident in Germany. Some of the special features are described in these two articles.

Die Limited Liability Company (LLC) gilt in den USA als Gesellschaftsform, die einfach zu gründen, flexibel zu handhaben und dennoch eine weitgehende Haftungsbeschränkung für ihre Gesellschafter bietet. Besonderheiten sind zu beachten, wenn ihre Gesellschafter in Deutschland ansässig sind. In zwei Artikeln werden einige der Besonderheiten dargestellt.

Die Limited Liability Company (LLC) gilt in den USA als Gesellschaftsform, die einfach zu gründen, flexibel zu handhaben und dennoch eine weitgehende Haftungsbeschränkung für ihre Gesellschafter bietet. Besonderheiten sind zu beachten, wenn ihre Gesellschafter in Deutschland ansässig sind. In zwei Artikeln werden einige der Besonderheiten dargestellt.

Die deutsche Wirtschaft benötigt in vielen Bereichen Arbeitnehmer aus anderen Ländern, weil häufig nicht genügend qualifizierte Fachkräfte zur Verfügung stehen. Wenn diese Arbeitnehmer beginnen, in Deutschland zur arbeiten und zu leben, sehen sie sich besonderen Herausforderungen ausgesetzt. Es gilt nicht nur, sprachliche und kulturelle Barrieren zu überwinden. Auch Rechts- und Steuersystem wirken fremd und unüberschaubar, häufig auch verwirrend.

The year 2023 has brought with it changes in German income tax law which may be significant for expatriates living and working in Germany. Some changes are important for employees and their employers. Other changes pertain to all taxpayers.

The artists’ social security insurance is a special part of the Germany’s social security system. The system applies for self-employed artists and publicists. Publicists in this sense are for example journalists. The system is financed one half through contributions of artists or publicists and by the other half through subsidies from the Federal Government and by companies, institutions, associations, or public organisations who utilize any artistic or written works created by self-employed persons.

Under certain circumstances it is beneficial for foreign people to become voluntary members in one or more of the schemes. This is mainly the case for shareholders of foreign companies or partners of foreign partnerships who are not employed in Germany and therefore not obligatory members of Germany’s social security system.

The German social security system in general covers only employments. This means that it is important to determine when a manager of a corporation or a member of a partnership is deemed to be an employee and becomes liable to German social security contributions if this person continues to work for the company.

The German social security system is incredibly complex and varies fundamentally from systems of other countries. The parts of the system are very fragmented, and the legal structure is complicated. In addition, there are a lot of different players and organizations involved which makes it even harder to keep track with constant changes in legislation and court decisions. Even many Germans find it impossible to understand the system and its details, and for foreigners who relocate to Germany the system can easily become a devious monster. Therefore, we will publish a serious of articles with the aim to bring some light into this darkness.

Germany’s social security system is complex and varies from the systems of other countries. This complexity makes it very difficult for affected persons and enterprises to follow their legal obligations and determine beneficial solutions. Therefore, there will be a series of articles published on this website explaining the German social security system and special issues that apply for expatriates relocating to Germany.

From 2020, owners of residential buildings that are more than 10 years old can apply for a special tax benefit. The application can be made in a special form that is part of the German income tax return. This benefit can only be used if the owner uses the property for their own residential purposes.

US pension plans are an important cornerstone of retirement planning both for US citizens and US residents. As long as citizens and residents remain in the USA the tax consequences are straight forward. However, if a US citizen or a citizen of another state relocates to Germany and withdraws money from such a plan, the tax situation changes and becomes more complex. This is particularly so because many questions regarding the German taxation of withdrawals form 401(k)-plans or IRAs are still unresolved. However, a recent ruling of the German Federal Fiscal Court clarified one outstanding point.

When shareholders of foreign based companies relocate to Germany, the tax implications can be severe. This is especially the case if the shareholder is the only manager of a small or medium-sized company. In this case the place of effective management of the company is also transferred to Germany with major tax consequences for the company and the shareholder alike. This article describes the basic tax issues but particularly the valuation of the company’s assets at the moment that is becomes a tax resident entity in Germany.

There are various situations where an expatriate who relocates to Germany would benefit from a “tax cover” to avoid undesirable tax consequences. One way to avoid unwanted tax implications is the transfer of property which generates respective income to a German or a foreign company. However, this transfer often results in tax consequences at a later stage which may be considered not to be beneficial and so it must only be done after proper research. Another tax planning tool might be the transfer of respective property into a pension plan.

There are several important reporting obligations in Germany. Most of them have to be observed by both German citizens and expatriates who relocate to Germany. The obligations apply especially to persons who are shareholders of companies, or members of partnerships who have set up a business activity in Germany. Persons in this respect are considered as both individuals as well as corporations.

Living and working in another country requires careful tax planning as there are always many tax issues to be considered. In addition, social security and other legal issues such as immigration law must be observed. This applies for all US citizens who relocate to Germany and it is important to note that there are special issues to be observed. Different tax and social security systems in Germany and the USA may cause problems in addition to those contained in special provisions in the Double Taxation Convention between Germany and the USA (DTC USA).

Living and working in another country requires careful tax planning as there are always many tax issues to be considered. In addition, social security and other legal issues such as immigration law must be observed. This applies for all US citizens who relocate to Germany and it is important to note that there are special issues to be observed. Different tax and social security systems in Germany and the USA may cause problems in addition to those contained in special provisions in the Double Taxation Convention between Germany and the USA (DTC USA).

Finding the best way to relocate to Germany is important and seeking early advice will save time, cost and avoid difficulties later.

During this pandemic many companies are trying to keep their economic or professional activities going by sending people home and letting them work from there. This measure is not suitable for all businesses, but it is keeping many alive. Manufacturing companies or craft businesses will not be able to do this, but many of those in the service sector are taking this route right now.

From 1st March 2020 skilled workers and professional specialists are able to move to Germany in order to work in Germany. This is due to the Fachkräfteeinwanderungsgesetz (Specialist Immigration Code), which allows skilled personal from non-EU or non-EEA-countries to live and work in Germany. The previous restrictions in controlling the number of  specialists and skilled workers into Germany have been reduced  significantly.

German income tax regulations are relatively generous if it comes to deductibility of job related expenses.

Die Limited Liability Company - kurz LLC - ist eine in den USA wegen ihrer großen Flexibilität sehr beliebte Gesellschaftsform. Diese Vorteile können aber steuerlich zum Boomerang werden, wenn ihre Gesellschafter in Deutschland ansässig sind oder es werden. Der Beitrag in der ISR 3/2019, Seite 114 behandelt die einzelnen Problembereiche.

Self-employed people as well as employees may work some of the time or permanently from home. This raises the question of whether and when expenses for a home office are tax deductible in Germany and if so, what kind of expenses are valid.

Es gibt eine Anzahl von US-Staatsbürgern, die nach Beendigung ihres aktiven Berufslebens ihren Wohnsitz in Deutschland haben oder nehmen. Die kann familiäre oder andere private Gründe haben, im Einzelfall auch politische. Es stellt sich in diesen Fällen immer die Frage, wie Altersversorgungsbezüge aus den USA in Deutschland besteuert werden und ob eine Doppelbesteuerung droht. Dieselben Fragen stellen sich natürlich auch für Deutsche, die in ihrer aktiven Zeit Rentenansprüche gegenüber US-Altersvorsorgeeinrichtungen erworben haben. Die Autoren Peter Scheller und Michael Dauer haben hierüber in der ISR 1/2019, Seite 32 einen Artikel veröffentlicht.

Traditionally Germany has had a so called synthetic tax system. That means that the total income from each and every source is amalgamated and the sum multiplied by the individual tax rate of the taxpayer. This method also means that losses from certain sources (such as trade and business or renting out real estate and property) can be credited against other positive income. Germany abolished this system with regard to income from capital investments and now this kind of income is not part of this amalgamation but is taxed at a special tax rate.

The United Kingdom and the European Union are still negotiating about an exit agreement. The hard line of EU negotiators and more so the deep discord within the governing Conservative party about Great Britain’s negotiation strategy make it more and more unlikely that both parties will come to an agreement by 29 March 2019. A hard Brexit become more and more a likely scenario. This will have wide-reaching consequences for British citizens living in Germany.

Die deutsche Wirtschaft zieht viele Fachkräfte aus dem Ausland an, die für eine gewisse Zeit in Deutschland leben und arbeiten. Diese Fachkräfte sehen sich mit einer Vielzahl steuerlicher und sozialversicherungsrechtlicher Fragen in Deutschland konfrontiert. In der Praxis sind Krankenversicherung und Altersvorsorge wichtige zu klärende Punkte. Im ersten Teil der Untersuchung stehen die sozialversicherungsrechtlichen, im zweiten Teil die steuerlichen Regelungen zur Kranken-und Rentenversicherung während der Tätigkeit in Deutschland im Vordergrund. Die steuerlichen Wirkungen während der Auszahlungsphase von Renten müssen einem weiteren Artikel vorbehalten bleiben. Der Beitrag wurde veröffentlich in der ISR 2018, Seite 178.

US citizens and lawful permanent residents (green card holders) may wish to retire in Germany. This has tax implications in Germany and in the US.

There are good reasons to form a LLC in the USA. It combines preferable characteristics such as a far-reaching legal flexibility of the corporate structure with a limited liability of its shareholders. Beside this the shareholders can choose whether the …

Expatriates living and working in Germany are aware of the fact that relocation to Germany has consequences in regard to their tax situation. Most expatriates who live and work in Germany are employees who work for a German or foreign …

Some service industries employ freelancers rather than employees in order to carry out certain jobs. To work as a freelancer can be beneficial both for the freelancer and his/her customer. However, if the freelancer’s position is similar to the one of …

Die Autoren Peter Scheller und Michael Dauer haben in der Zeitschrift Praxis Internationale Steuerberatung (PIStB 11/2017, S. 304) einen Artikel um Thema Umzugskosten bei Arbeitnehmerentsendung nicht leichtfertig verschenken – Teil 1: Werbungskosten veröffentlicht. Der 2. Teil zu den Bereichen Umsatzsteuer und …

In general expatriates relocate to Germany for business or job reasons. However, there is a growing number of expatriates especially from the US and the UK who are moving to Germany when reaching retirement age. The reasons for this move …

The number of US citizens who are living and working in Germany increases steadily. Although their number with circa 110,000 persons is relatively small, their economic significance is high. US-citizens who move to Germany generally have either well paid jobs …

In general expatriates moving to Germany are interested in their tax situation. For people with high income this is understandable. However, foreign employees and their employers should not ignore social security obligations in Germany. There are certain issues to be …

Residence is one of the most common criteria for the taxation on income. Most states tax the worldwide income of a person who is a resident within their territory. Unfortunately every state is free to define the term residence differently. …

For foreign investors Germany’s real estate property is still attractive although property prices are still rising. Foreign investors have to consider legal and tax issues in Germany. This article covers 10 main tax issues. (1) German real estate and taxes …

Germany’s economy needs well educated specialist in all economic areas. Since there is a substantial shortage of German specialist more and more Germany companies are employing foreign staff. Expatriates who want to work in Germany have good chance to find 

Im Rahmen einer internationalen Zusammenarbeit haben Hugo Schauli, Wirtschaftsprüfer der Wirtschafts-Treuhand AG, Basel und Peter Scheller die steuerlichen und sozialversicherungsrechtlichen Fragen deutscher Arbeitnehmer, die in der Schweiz einer Tätigkeit nachgehen, untersucht. In der Internationale Steuer-Rundschau 5/2016, S. 182 wurde der zweite Teil …

Im Rahmen einer internationalen Zusammenarbeit haben Hugo Schauli, Wirtschaftsprüfer der Wirtschafts-Treuhand AG, Basel und Peter Scheller die steuerlichen und sozialversicherungsrechtlichen Fragen deutscher Arbeitnehmer, die in der Schweiz einer Tätigkeit nachgehen, untersucht. In der Internationale Steuer-Rundschau 4/2016, S. 151 wurde der …

As an US expat, it’s important to understand the differences of how stock options are taxed in different countries. Knowing the ins and out will help you properly file your taxes in both the US and your host country – … 

Die USA sind eines von zwei Staaten, die ihre Staatsangehörigen und Personen mit Daueraufenthaltsberechtigung besteuern. Das führt dazu, dass alle US-Staatsbürger und Greencard-Holder zwingend jedes Jahr eine US-Einkommensteuererklärung abgeben müssen. Dies gilt auch dann, wenn diese Personen nicht in der USA …

It does not happen very often that a Court decision over inheritance law gets high profile publicity. However, the recent verdict of Her Majesty’s Court of Appeal regarding Heather Ilott’s share of inheritance attracted public attention on a large scale. You may …

Germany imposes certain taxes on profits of domestic and foreign corporations with a tax representation in Germany. There are federal taxes such as corporation income tax (tax rate: 15%) and solidarity surplus charge (tax rate: 5,5% on corporation income tax …

American tax rules are complex for US taxpayers, but they can also be confusing for others who spend time working in the US or have US investments. Let’s take a closer look at some of the more common tax situations …

In Germany resident spouses will be jointly assessed for income tax purposes unless they opt for seperate assessment. Joint assessment decreases the tax burden if one spouse’s income is highrer than that of the other spouse. If a spouse qualifies for …

Employed individuals who work in Germany are subject to Germany’s social security systems. Self-employed persons are in general not liable to German social security contributions. There are certain exceptions from this general rule. The most important exception is the assignment of an employee. The …

In general expatriates moving to Germany are interested in their tax situation. For people with high income this is understandable. However, foreign employees and their employers should not ignore social security obligations in Germany. There are certain issues to be …

Sometimes employees receive wage payments by third parties. This happens within company groups or through benefits granted by business partners.        This occurs, for example, in the following cases: discounts granted by business partners (for example: discounts on …

Our co-operation partner Geenback Tax Services provided us with the upcoming deadlines to file US-income tax returns. It’s that time of the year again and the US tax deadlines are rapidly approaching! Are you ready to file? Here are the …

Expatriates who start working in Germany may keep the main household in their home country. This is especially the case if the family stays back home. This situation results in two households and leads to the question: Are the expenses …

In Germany there is a wide range of tax incentives for parents and other persons who provide a home for children. However, the complex network of regulations makes it hard for Germans and especially expatriates to keep a sufficient overview. The following … 

Expatriates especially from the USA and the Anglo-Saxon world who have been sent to Germany by their employers are often beneficiaries of stock option plans. Regularly these employees exercise options while staying in Germany. This raises the question of how benefits will be …

Foreign source income is in general not subject to German income taxation if a person is not resident in Germany. However, in years where a person enters or leaves Germany this sort of income might affect the progressive German income tax …

Employees can deduct relocation expenses from their taxable income if these costs are job or work-related. Alternatively, the employer may reimburse those expenses free of tax. If the employer does not reimburse all relocation expenses, the employee is entitled to …

A lot of countries such as the USA and the UK adopted a self-assessment regime in order to collect income tax. This means that an individual has to declare tax relevant items such as taxable income and deductible expenses. Every taxpayer has …

Individuals can claim tax deductions for expenses connected to private homes. These rules promote family homes but also secondary residences or holiday homes. In Germany these fees are called Haushaltsnahe Dienstleistungen. Services must be linked to the household. These favourable regulations cover employments …

In Germany religious communities can request the tax authorities to collect a church tax from their members. In the past the Roman-Catholic Church and most of Protestant communities gave the authority of tax collection to the tax authorities. The church tax will …

Tax systems are different in every country. Therefore expatriates working abroad face special challenges. German tax regulations are different to regulations in other countries. Individuals who are working and living in or considering re-locating to Germany should pay attention to 10 …