Key takeaways
- You have unlimited tax liability in Germany if you have a residence (Wohnsitz) – a home you keep and use – or a habitual abode (gewöhnlicher Aufenthalt), meaning a stay of more than six months.
- Residents are taxed on worldwide income at progressive rates from 14% to 42%, and 45% on very high incomes, plus a solidarity surcharge for high earners and church tax for members of registered churches. Investment income pays a flat 25% (Abgeltungsteuer).
- You register your address (Anmeldung) within two weeks, receive a tax ID (Steuer-ID) by post, and can request a certificate of residence (Ansässigkeitsbescheinigung) from your tax office (Finanzamt).
Last reviewed: October 2026
Germany's rules are simple in principle – a home or six months makes you resident – but the consequences are broad, including extended taxation after moving to low-tax countries and an exit tax on shareholdings. This guide explains how to become resident and what follows in 2026.
Germany tax residency – key figures (2026)
| Item | Rule |
|---|---|
| Residence tests | Wohnsitz (home available to you) or gewöhnlicher Aufenthalt (> 6 months) |
| Scope | Worldwide income |
| Income tax | 14%–42% (42% from EUR 69,879); 45% above about EUR 278,000 (single, 2026) |
| Basic allowance | EUR 12,348 (single, 2026) |
| Solidarity surcharge | 5.5% of income tax, only for high earners |
| Church tax | 8%–9% of income tax for church members |
| Investment income | 25% flat + surcharges; EUR 1,000 saver's allowance |
| Exit tax | Shareholdings ≥ 1% in companies (§6 AStG) |
The two residence tests
- Wohnsitz – you have a dwelling you can use, in circumstances suggesting you will keep and use it. A rented flat you return to regularly is enough, even if you spend most of the year abroad.
- Gewöhnlicher Aufenthalt – you stay in Germany for more than six months in a row (which may straddle two calendar years). Short interruptions do not break it.
Either one triggers unlimited liability. Where you are also resident elsewhere, the relevant treaty tie-breaker decides.
How to become resident
- Right to stay – EU/EEA/Swiss citizens move freely. Others need a visa or residence title, for example the EU Blue Card, a skilled-worker permit, a freelance permit or the Opportunity Card (Chancenkarte) for job seekers.
- Find a flat and get the landlord's confirmation (Wohnungsgeberbestätigung).
- Anmeldung at the Bürgeramt within two weeks of moving in.
- Steuer-ID is sent automatically by post within a few weeks.
- Health insurance – statutory or private cover is mandatory.
- Tax class and filing – your employer withholds wage tax. Self-employed people register with the Finanzamt (Fragebogen zur steuerlichen Erfassung).
Example: A Spanish data scientist moves to Berlin in March 2026 with a Blue Card-level salary. She is resident from the day she moves into her Berlin flat (the Anmeldung is evidence, not the test). Her German salary and her Spanish rental income are taxable in Germany, with relief for the Spanish tax on the rent under the Germany–Spain treaty. Her Spanish ETF gains pay the 25% flat tax.
Certificate of residence
Request an Ansässigkeitsbescheinigung from your Finanzamt, often on the foreign authority's form or the German official form, to claim treaty relief abroad.
Watch-outs when you later leave
- Extended limited tax liability (§2 AStG) can follow German citizens who move to low-tax countries while keeping substantial German economic interests.
- Exit tax (§6 AStG) applies to shareholdings of 1% or more (and certain large fund holdings); since 2022 the tax can be paid in seven annual instalments on application, and it lapses if you return within seven years.
Frequently asked questions
When do I become a tax resident in Germany?
As soon as you have a home available to you in Germany, or once you stay there for more than six months.
What is the Steuer-ID?
Your lifelong German tax identification number, sent by post after you register your address.
What are German income tax rates?
Progressive from 14% to 42%, and 45% on the highest incomes, plus solidarity surcharge for high earners and church tax for members.
How do I get a German tax residence certificate?
Ask your Finanzamt for an Ansässigkeitsbescheinigung, usually by submitting the form required by the other country.
Related guides
- Leaving Germany: ending your tax residency
- Tax incentives for expats in Germany
- Legal forms of business in Germany
Sources
- PwC Worldwide Tax Summaries – Germany: Residence
- German Fiscal Code (AO) §§8–9; Income Tax Act (EStG) §1; Foreign Tax Act (AStG) §§2, 6
This guide is general information, not personalised tax advice.
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