Welcome to your ultimate guide to securing tax residency in Germany! Whether you're a digital nomad, expat, or a location-independent worker, Germany offers a structured and clear process to establish your tax residency. Follow these steps carefully to ensure you meet all legal requirements.
Step 1: Establish a Permanent Home
To be considered a tax resident in Germany, you need to have a permanent home in the country. This means renting or purchasing a house or apartment that you intend to use as your main residence. The home should be equipped with all the necessities that make it suitable for living (e.g., furniture, kitchen, bathroom).
Step 2: Register Your Residence
Once you have secured a permanent home, you must register your address at the local registration office (Einwohnermeldeamt or Bürgeramt). This process is known as 'Anmeldung.' You will need to provide identification, proof of residence (e.g., lease agreement), and a completed registration form. Upon successful registration, you will receive a confirmation document called 'Meldebestätigung.'
Step 3: Obtain a Tax Identification Number (TIN)
After registering your residence, you will automatically be issued a Tax Identification Number (Steuerliche Identifikationsnummer or Steuer-ID) by the Federal Central Tax Office. This number is essential for all tax-related activities and will be sent to your registered address within a few weeks.
Step 4: Prove Your Physical Presence
To establish tax residency, you must spend more than 183 days within a calendar year in Germany. This is known as the '183-day rule.' Ensure you keep records of your time spent in Germany, such as flight tickets and accommodation receipts, as you may need to provide proof of your physical presence.
Step 5: Open a German Bank Account
While not a legal requirement, opening a German bank account can facilitate your financial transactions and demonstrate your intention to reside in Germany. Most banks will require proof of residence and your Tax Identification Number to open an account.
Step 6: File Your Tax Return
As a tax resident, you are required to file an annual tax return (Einkommensteuererklärung) with the German tax authorities (Finanzamt). The tax year in Germany follows the calendar year, and the deadline for submitting your tax return is usually July 31st of the following year. Ensure you keep all necessary financial records and documents to accurately complete your tax return.
Legal References
- Section 8 of the German Fiscal Code (Abgabenordnung)
- Section 9 of the German Fiscal Code (Abgabenordnung)
- Section 39e of the Income Tax Act (Einkommensteuergesetz)
- Section 1 of the Income Tax Act (Einkommensteuergesetz)
Useful Links
- Federal Central Tax Office (BZSt)
- Federal Ministry of Finance (BMF)
- German Tax Law (Gesetze-im-Internet)
