English-Speaking Tax Advisor for Expats in Frankfurt
Frequently Asked Questions for Expats in Germany
Do expats need a tax advisor in Germany
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Yes, many expats are required to file a German tax return, especially if they have multiple sources of income, received tax-free benefits, or earned more than one salary during the year. Even when not mandatory, filing a tax return is often beneficial, as many expats receive a tax refund.
When am I considered a tax resident in Germany?
You are considered a German tax resident if you have a permanent home in Germany or spend more than 183 days per year in the country. As a tax resident, your worldwide income may be subject to German taxation, subject to double taxation treaties.
Is foreign income taxable in Germany?
Yes, foreign income is generally taxable in Germany if you are a tax resident. However, double taxation agreements (DTAs) may exempt the income or apply tax credits to avoid being taxed twice. Correct classification of foreign income is essential to avoid penalties.
How does double taxation work for expats in Germany?
Germany has double taxation treaties with many countries to prevent the same income from being taxed twice. Depending on the treaty, income may be exempt in Germany or taxed with a credit for foreign taxes paid. Each case must be reviewed individually.
What documents do I need for a German tax return?
Typical documents include your German income statement (Lohnsteuerbescheinigung), proof of deductible expenses, bank statements, rental income records, and documentation of foreign income. Missing or incorrect documents can lead to delays or tax reassessments.
Can an English-speaking tax advisor communicate with the German tax office for me?
Yes. A certified German tax advisor (Steuerberater) can fully represent you before the Finanzamt, handle all correspondence, submit your tax return, and respond to official inquiries — all while communicating with you in English.
Are relocation and moving expenses tax-deductible?
Certain relocation expenses related to starting a job in Germany may be tax-deductible, such as moving costs, temporary accommodation, and travel expenses. The deductibility depends on your personal situation and proper documentation.
Do freelancers and self-employed expats have different tax obligations?
Yes. Freelancers and self-employed expats must register with the tax office, file annual income tax returns, and often submit VAT returns. Incorrect classification or missed deadlines can lead to significant penalties, making professional advice highly recommended.
How long do I have to submit my German tax return?.
The standard deadline is July 31 of the following year. If a tax advisor files your return, the deadline is usually extended. Missing deadlines may result in late filing penalties and interest charges.
Can filing a tax return in Germany result in a refund?
Yes, many expats receive a tax refund after filing their German tax return. Common reasons include deductible expenses, incorrect tax withholding, or changes in personal circumstances. A properly prepared tax return often leads to a favorable outcome.
Typical Tax-Deductible Expenses for Expats in Germany
1. Relocation and Moving Costs
Certain relocation expenses related to starting or changing a job in Germany may be tax-deductible.
- Moving company costs
- Transportation of furniture
- Travel expenses related to the move
- Temporary accommodation after arrival
- Double rent during the transition period
2. Commuting and Travel Expenses
Expenses related to traveling between home and workplace can often be deducted.
- Commuting allowance (distance-based)
- Public transportation tickets
- Business-related travel costs
- Flights for work-related trips
3. Work-Related Expenses (Income-Related Expenses)
These expenses are deductible if they are directly connected to your employment.
- Home office (if eligible)
- Work equipment (laptop, desk, office chair)
- Professional literature and subscriptions
- Internet and telephone costs (business portion)
4. Housing-Related Costs
In certain cases, housing costs may be partially deductible.
- Double household costs (second residence for work reasons)
- Moving-related renovation costs
- Furniture for a second work-related residence
5. Language and Integration Costs
Expenses incurred to integrate professionally in Germany may be deductible.
- German language courses related to work
- Professional training and seminars
- Recognition of foreign qualifications
6. Tax Advisory and Professional Fees
Professional services connected to your tax obligations are deductible.
- Tax advisor fees
- Payroll tax consulting
- Costs for preparing tax returns
- Fees related to income-related tax matters
7. Insurance Contributions
Certain insurance premiums may be deductible under German tax law.
- Health insurance contributions
- Pension insurance contributions
- Liability insurance (professional or private)
- Unemployment insurance contributions
8. Family and Child-Related Expenses
Some family-related expenses may be tax-deductible.
- Childcare costs
- School-related care expenses
- Child allowance-related deductions
- Costs for dependent family members
9. Banking and Financial Costs
Expenses related to managing income may be deductible.
- Bank account fees
- Costs for international money transfers
- Investment-related advisory fees
10. Home Office and Remote Work Costs
If certain conditions are met, remote work expenses may be deductible.
- Home office lump sum
- Electricity and heating (business portion)
- Internet and phone usage
- Office furniture and equipment
⚠️ Important Note for Expats
Tax deductibility depends on:
- Your residency status
- Your employment situation (employee vs. self-employed)
- Proper documentation and receipts
- Applicable double taxation treaties
Each case should be reviewed individually by a certified German tax advisor.
