Taxes in Germany
If you're living in Germany long-term, you will be subject to file a German tax return. Let us guide you through the maze of taxes in Germany.
If you're employed, self-employed, run a business, or buy or inherit a property in Germany, you'll most likely be liable to pay tax. Of course, there is also value added tax on certain items you buy. You might also be liable for tax in your home country too.
Germany imposes income tax (applicable in every one of the 16 federal states of Germany) and a Solidarity Surcharge Law on individuals. Anyone carrying on a trade or business (including the self-employed) is also subject to business tax and municipal business tax - this is levied on all business enterprises in Germany, regardless of their legal form. Under the Church Tax Law, individual members of recognised churches are also subject to church tax.
Germany also levies value added tax, real estate transfer tax, an annual municipal tax on real property and a tax on insurance premiums.
For more information regarding taxes in Germany, read our articles on:
- Individual income tax for employees
- Individual income tax for entrepreneurs
- Corporate tax
- Inheritance tax
Please note: The information contained within the following articles is for guidance only and you should always seek the help of an accountant or similar professional for specific tax advice pertinent to your own situation.
The Bundeszentralamt für Steuern (Federal Central Tax Office) has information in English on its website.
Dorine Fraai / Expatica
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