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Particularly in the case of longer-term assignments abroad, the answer is not always straightforward. An employee may continue to have a home in Germany while living and working abroad. In such cases, both countries may regard the individual as tax resident under their respective domestic laws.

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.

Many small and medium-sized companies in Germany can benefit from tax incentives for investments. The two most important instruments are regulated in § 7g of the German Income Tax Act (EStG). The Investment Allowance (Investitionsabzugsbetrag – IAB) can be claimed before the investment, while the special depreciation (Sonderabschreibung) is available after the investment. Both tax reliefs are subject to a profit limit of € 200,000.

Anyone moving from the United States or the United Kingdom to Germany — or who is already subject to unlimited taxation in Germany — will quickly notice that even small legislative changes can have a significant cumulative impact, particularly on employment income (including remote work) and retirement planning. The following planned or implemented changes may be relevant for expatriates.

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.

A no-PE structure refers to a corporate structure that avoids a permanent establishment, usually in Germany. This is particularly important for foreign companies with domestic real estate. A foreign real estate company is subject to corporation tax and the solidarity surcharge, but not to trade tax.

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.

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.

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.

The IBDF Instituto Brasileiro de Direito Tributário, the HSB Hochschule Bremen – City University of Applied Sciences - and the International Tax Institute, University of Hamburg, in Cooperation with IFA Section North, Hamburg, are happy to invite you to a Conference with the subject "Comparison of the Tax Systems of Brazil and 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.