About us: Stephan Manke is registered tax consultant near Würzburg in the north of Bavaria. Five employees and the owner Stephan Manke take care of taxes for English speaking expats all over Germany.
What we do: We prepare income tax returns for expats in Germany and submit them to the tax office. We help you with paying less taxes, applying in time, RSU taxation, rental and dividend income, etc.
How much it costs: The preparation of a tax return costs 590€ incl. VAT. This includes 2 consulting hours. If an additional consultation is desired, this costs 85€ incl. VAT per 30 Minutes. You can deduct those costs from your taxable income to lower your taxes.
How it works: We send you a list with all the documents needed to prepare the income tax return. We answer your questions via phone and email, do the paperwork and submit after your approval the income report to the tax office.→ Let Manke do it: firstname.lastname@example.org
Who needs to do a tax return in Germany?
In Germany people with income from outside of Germany (rent, dividends, profits from stocks), married with tax classes 3 and 5, freelancers and self-employed need to do a tax return.
Should I file a tax return if I don't have to in Germany?
Yes, you should file a tax return in Germany if you don´t have to. Even if the tax return is not mandatory due to the employee's personal tax situation filing a tax return leads in almost all cases to a tax refund - the tax office (Finanazamt) pays you some of your already paid taxes back.
Until when do I need to file tax return in Germany?
In Germany you need to file your tax return without a tax consultant by 31.07. and with a tax consultant by 31.12. of the following year. Covid exeption for your tax return of 2021 and 2022: You need to file your tax return of 2021 and 2022 without a tax consultant by 01.11 and with a tax consultant by 31.08. of the following year.
How can I reduce my taxable income in Germany?
You can reduce your taxable income in Germany by filing a tax report. In this tax report you include tax deductions such as working from home, traveling to work, "Nebenkostenabrechnung", invoices from the Doctor or the pharmacy, moving to and inside of Germany, costs for glasses, costs for your tax consultant, etc. By substracting those expenses you lower your taxable income in Germany.
How are stock bonus / restricted stock unit / RSU taxed in Germany?
Stock bonus / restricted stock unit / RSU are taxed as your income in Germany. RSU compensation is considered as income by the tax office in Germany. As income from work the tax rate of restricted stock units depend on your total income.
How long can you live in Germany without paying tax?
You can live up to 183 days in Germany without paying taxes. If you do live more than 183 days (half a year) in Germany you pay taxes in Germany. The decision if you pay taxes in Germany is based on where your center of living is located, hence the 183 days rule.
Can you change your tax class in Germany?
You can change your tax class in Germany several times a year. For the current year you can apply for a change of tax class at the tax office until 30.11. Be sure to check your pay slip to see whether your employer has taken the change into account.
How is income from outside of Germany taxed in Germany?
Foreign income from work is taxed in Germany with your tax rate as income from work inside of Germany. As long as you stay more than 183 days (=half a year) inside of Germany. Renting income from outside of Germany is taxed as working income in Germany. Stock trading and dividend income from outside of Germany over 801 € is taxed with 26,375 % in Germany.
Does a German tax consultant declare my tax report outside of Germany?
A German tax consultant does usually not declare your tax report for other countries than Germany. However a German tax consultant supports you not paying tax in Germany and another country at the same time by helping with the double taxation agreement.
What happens if I don't file taxes in Germany?
If you don´t file your taxes in Germany you will receive a letter of the German tax office asking for your tax report. Not filing your taxes in Germany leads to a penalty of 0,25 % per month based on your total taxes. The minimum fee for not filing your taxes in Germany is 25 € and the maximum fee is 25.000 €.
Disclaimer: Please note that there are in fact no short answers to complex questions. The German tax system is very complicated with many exceptions and special rules. The answers on this page are only meant to give you a first insight into the subject. As short as possible they should give you a first understanding. Please contact a tax advisor or your tax office before making your decision or filing a tax report. These anwers are no tax advise and we are not liabel for your desicions based on the content of this page.