Deciding to cease your tax residency in Germany is a significant step and involves a series of essential procedures. This guide will walk you through the process with clarity and precision, ensuring you meet all legal requirements.
Step 1: Deregistration at the Local Registration Office (Einwohnermeldeamt)
The first step is to deregister your residence in Germany. You must inform the local registration office (Einwohnermeldeamt) about your move. This should be done within two weeks of your departure. You will need to fill out a deregistration form (Abmeldung) and submit it either in person or by mail. Ensure you receive a confirmation of deregistration (Abmeldebestätigung), as this document is crucial for tax purposes.
Step 2: Inform the German Tax Office (Finanzamt)
After deregistering from the local registration office, you must inform your local tax office (Finanzamt) about your change in residency. This involves submitting a formal letter stating your departure date and new address abroad. You may be required to provide a copy of your deregistration confirmation and other relevant documents. This step ensures that the tax office is aware of your departure and can update your tax status accordingly.
Step 3: Settle Outstanding Tax Liabilities
Before ceasing your tax residency, you must settle any outstanding tax liabilities. This includes filing your final tax return for the period you were a resident in Germany. Ensure all taxes are paid and there are no pending issues with the tax office. Failure to do so may result in complications or penalties.
Step 4: Close German Bank Accounts
If you have any bank accounts in Germany, it is advisable to close them unless they are necessary for managing assets that remain in Germany. Notify your bank about your change of residence and provide them with your new contact details. This step helps in avoiding any future misunderstandings or issues related to your financial matters in Germany.
Step 5: Cancel or Update Subscriptions and Memberships
Ensure that you cancel or update any subscriptions, memberships, and service contracts in Germany. This includes utilities, insurance policies, gym memberships, and other recurring services. Inform these service providers about your move and provide them with your new address if necessary. This ensures that you do not incur any unnecessary charges after your departure.
Legal References
- Abgabenordnung (AO) - German Fiscal Code
- Einkommensteuergesetz (EStG) - Income Tax Act
- Bundesmeldegesetz (BMG) - Federal Registration Act
Useful Links
- Federal Central Tax Office (BZSt)
- Federal Ministry of Finance (BMF)
- German Tax Law (Gesetze-im-Internet)
