Professional Tax Consulting for Expats in Germany
How it works
- Share some key information about yourself. We send you an offer tailored to your needs and your situation as an expat in Germany.
- After accepting the offer, you provide a copy of your ID card, sign the power of attorney required by the German tax office and pay the one-time onboarding fee. You then receive a secure link to our online questionnaire and document upload.
- Our experts prepare your draft tax return, ensuring compliance, accuracy, avoidance of double taxation and maximum tax savings. You review and approve the draft and pay our invoice. There is no advance payment on our fee for your tax return: you only pay once you have reviewed and approved your draft.
- We file your return electronically with the tax office. If the tax office has questions or requests documents, we handle it for you.
- After three to six months, we receive your tax assessment, review it carefully and share the results with you. The resulting taxes are then paid or refunded.
Tax Compliance and Avoidance of Double Taxation in Germany
Ensure accuracy and maximize benefits
Many expats in Germany wonder if they really need to file a tax return. The answer is often yes and depends on your situation. If you have foreign or rental income of more than EUR 410, work for more than one employer at the same time, receive benefits like parental allowance, or are married under certain tax classes, filing is mandatory (§ 46 (2) EStG). Even if you only have employment income from one employer, a voluntary tax return can still be worth it. Many people receive refunds each year because of deductible expenses, such as relocation costs, commuting, health insurance, or home office deductions.
Submitting a tax declaration on time with the assistance of a tax consultant ensures your tax compliance with German law. Missing the deadline can lead to a late filing surcharge of at least EUR 25 for each month started (§ 152 (5) AO), and often creates avoidable stress. Expats can also benefit from Germany’s double taxation agreements, which aim to ensure that income earned abroad is not taxed twice.
Filing your tax declaration with professional assistance provides the highest level of compliance, minimizes your tax risks, optimizes your deductions and saves you plenty of time to focus on what really matters to you.
Special Service for US Citizens in Germany
Are you a US citizen or Green Card holder living in Germany? You are required to file tax returns in both countries. Our affiliate Prinz.tax International GmbH, a CPA firm registered with the New Hampshire Board of Accountancy, prepares your US federal and state tax returns and FBAR, fully coordinated with your German tax declaration. One team for both returns, with a clear focus on avoiding double taxation.
International Tax Expertise for Expats
At Prinz.tax, we combine specialized international tax expertise with a proven track record of managing cross-border tax compliance for more than 1,000 clients in over 50 countries. Our commitment to excellence is reflected in our consistent 5.0 rating on Google.
Our dedicated team of tax experts uses in-house digital workflows to handle your expat tax declarations, ensuring that foreign-source income is correctly reported and complex cross-border cases are handled accurately. We ensure that every step of your international tax journey is handled seamlessly, giving you complete confidence and peace of mind.
We provide a clear and reliable process for expats in Germany and will guide you through the tax declaration process from beginning to end. Get in touch with us today to get your free personal offer!
Frequently Asked Tax Questions from Expats in Germany
Quick answers to common queries
German tax basics
What is a tax declaration?
A tax declaration, or tax return (in German: Steuererklärung), is a form where you report your income to the German tax office in a structured manner. The forms are standardized and may change over time. They are usually submitted electronically; if you have business or freelance income, electronic filing is mandatory (§ 25 (4) EStG).
Read more: Glossary of key German income tax terms for expats
What makes me a tax resident in Germany?
If you have a home in Germany (§ 8 AO) or stay here for more than six months (§ 9 AO), you are generally considered a tax resident and must declare your worldwide income. You do not have to stay in Germany for more than 183 days: having a home available to you here is enough.
Read more: Tax residency in Germany: when it starts and what it means
Do expats have to file a tax return in Germany?
In most cases, yes. As a tax resident you declare your worldwide income, but whether filing is mandatory depends on your income, tax class and marital status (§ 46 (2) EStG). Even if it is not mandatory, many expats file voluntarily to receive refunds for overpaid taxes, up to four years back (§ 169 AO).
Read more: Do I need to file a German tax declaration as an expat?
How much tax refund can I expect?
According to the German Federal Statistical Office (Destatis), employees in Germany who filed a tax return for 2022 and received a refund got back EUR 1,240 on average. This figure only covers employees with purely employment income. For expats, the result varies widely. It depends, for example, on foreign income, the year of moving to or leaving Germany, relocation costs and double household expenses, and in some cases the result is a back payment. For a first estimate of your own situation, use our free Prinz.tax German Income Tax Calculator.
What documents do I need for my German tax return?
This depends on your personal situation. Your income, expenses and deductions must be well documented, because the tax office can request supporting documents at any time. As tax experts, we know exactly what the German tax office expects, and we review your documents individually before we prepare your return. After accepting our offer, you receive a secure link to our online questionnaire and document upload, which guides you through the information relevant to your situation.
Read more: How we ensure fast and accurate processing of your tax return
What is the deadline for filing my German tax return?
The regular deadline for filing a German tax return is July 31 of the following year. If you have professional representation, such as a tax advisor, the deadline extends to the end of February of the year after next. For the 2025 tax year, the deadline is July 31, 2026, or March 1, 2027 with a tax advisor (§ 149 (2), (3) AO). Also, extensions may be possible in specific cases.
Read more: Tax filing deadlines in Germany for expats
What income is taxable in Germany?
If you are a resident in Germany, your worldwide income is taxable. This includes your salary, freelance work, business earnings, investments, rent, and pensions. Sometimes, double taxation treaties may reduce or exempt some foreign income from German tax.
Read more: Income tax in Germany for expats: a beginner’s guide
Special situations
How are U.S. citizens (and other foreign nationals) affected by double taxation?
Germany has treaties with many countries, including the U.S. These treaties aim to avoid double taxation, but filing obligations often remain in both countries. For U.S. citizens, worldwide income must still be reported to the IRS, even if you live abroad. Prinz.tax prepares your German and US tax returns in one coordinated process.
Read more: Our US tax service
How do double taxation treaties apply to my foreign salary or rental income?
Germany has double taxation treaties with around 90 countries. They decide which country may tax a specific type of income. Rental income is usually taxed in the country where the property is located. For salary, it generally depends on where you physically perform your work. Depending on the treaty, Germany then either exempts the foreign income but uses it to determine your German tax rate (progression clause, § 32b EStG), or taxes it and credits the foreign tax (§ 34c EStG). In both cases, the foreign income must be reported in your German tax return.
Read more: Rental income from foreign real estate while living in Germany
Can I deduct expenses as an expat?
Yes. Expenses directly related to your taxable income can be deducted. For expats, the most valuable deductions are often relocation costs when you move to Germany for work, double household expenses if your main household remains abroad, and work-related expenses such as travel, IT equipment, home office, training and professional insurance (§ 9 EStG). Certain insurance contributions and childcare costs can also be claimed (§ 10 EStG). The tax office usually requires documentation for each deduction.
Read more: The most important German tax rules and tax deductions for expats
Are tax advisor fees tax-deductible in Germany?
Yes, but it depends, and often not entirely. Since 2006, tax advisor fees are only deductible to the extent that they relate to determining your income, for example your employment income or rental income (§ 9 (1) EStG). The share for the general parts of the return, such as the main form and special expenses, is a non-deductible private expense (§ 12 no. 1 EStG). For investment income, a deduction is excluded by the saver’s allowance (§ 20 (9) EStG). As part of our tax preparation process, we determine the maximum deduction for our clients. The allocation follows the official guidance of the German tax authorities (H 12.1 EStH).
What is a gift and inheritance tax declaration?
Gifts and inheritances are subject to German gift and inheritance tax, which is separate from income tax. You must notify the tax office within three months (§ 30 ErbStG). A full declaration is only required if the tax office requests it (§ 31 ErbStG). Depending on the relationship and the amount, tax-free allowances apply and tax rates range from 7% to 50% (§ 16 and § 19 ErbStG).
Read more: Gift and inheritance tax
Which international tax situations do you handle?
We work exclusively for private individuals with an international tax situation, for example:
- employees with restricted stock units (RSUs) or stock options
- freelancers (Freiberufler)
- US citizens and Green Card holders living in Germany
- the year of moving to or leaving Germany
- rental property in Germany or abroad
- foreign pensions and retirement accounts, such as a 401(k) or IRA
- investments held with foreign banks or brokers
- non-residents with German income
Working with a tax advisor
What should I look for when choosing a tax advisor as an expat?
Check that the advisor is licensed and listed in the official register of tax advisers. Make sure that all communication is possible in English and that the advisor has experience with double taxation treaties and foreign income. A fixed-price offer before work begins gives you cost certainty, and a fully digital process allows you to work together from anywhere.
I only have a specific question. Do I need your tax declaration service?
No. If you only have a specific tax question, for example about a letter from the tax office or your tax residency, book a 30-minute video consultation. If you need more comprehensive support to get your tax return prepared, request your free offer.
Can I file my German tax return in English?
The German tax forms and the online portal ELSTER are only available in German. With Prinz.tax, all communication with you is in English, and we handle all German forms and correspondence with the tax office.
Can I use tax software for my German tax return as an expat?
Yes, for simple cases, for example if you only have German employment income. Tax software cannot assess complex cross-border situations for you, such as foreign rental income, stock options or RSUs from a foreign employer, income in several countries, or the year you move to or leave Germany. These cases require decisions under tax treaties and the progression clause (§ 32b EStG), and errors often only become apparent in the tax assessment.
Read more: Tax software, local Steuerberater, Big Four or expat specialist: which option is best?
How does communication with the German tax office work when I use a tax advisor?
With your power of attorney, the tax office communicates directly with us (§ 80 AO). Tax assessments, questions and requests for documents are sent to Prinz.tax, and we respond on your behalf. You do not have to deal with the tax office yourself.
This is about much more than translating German into English. Tax is a language of its own: technical terms, formal requirements, strict deadlines and procedures that the tax office expects to be followed exactly. We speak German, English and Tax. We know what the tax office needs, in which form and by when, and we explain every result to you in plain English.
How can I check whether a German tax advisor is officially licensed?
Every licensed tax advisor (Steuerberater) and tax advisory firm in Germany is listed in the official register of tax advisers, maintained by the chambers of tax advisers (Steuerberaterkammern). You can search it free of charge. Only licensed professionals may provide comprehensive tax advice in Germany (§ 3 StBerG). Before you share personal documents, check that your advisor is listed. Prinz.tax Steuerberatung GmbH is a recognised tax advisory firm supervised by the Steuerberaterkammer Düsseldorf.
Read more: About Prinz.tax and our professional registrations
