As a non-resident in Germany do I need to file a German tax return?
Yes, when you recieve income from a German source you must submit a German income tax return before the German tax authorities.
What taxes are payable in Germany when purchasing a property?
The transfer of German real estate is subject to a real estate transfer tax of 3.5% on the purchase price.
I recieve rental income from my German property, what are my German tax obligations ?
As a non-resident German property owner you are obliged to file a German income tax return. Non-residents are subject to German personal income tax on income derived fromyour German property held in your own name.
Do I need to apply for German personal tax ID number ?
No, you do not have to apply for German tax ID number. It will be assigned automatically once your first German income tax is filed.
What is the deadline for submitting my German income tax return?
The German income tax return must be filed by the 31st May the year after income was first received. An extnsion is permitted up until the 30th of september where a tax consultant prepares the return on your behalf.
What are the German income tax rates for non-residents?
German income tax varies between 25% and 42%.
If I have a German income tax liability is there a Preliminary tax to pay?
The German Tax Office (Finanzamt) estimate your German tax liability for the current year based on the final payment for the previous year and require you to make quarterly advance payments of tax payable in March, June, September and December. The final tax liability is determined by filing a German incometax return.
In 1995, a Solidarity surcharge was introduced in Germany. This surcharge is levied at a rate of 5.5% of the German personal income and corporation taxes paid.
I purchased a German property through a non-German company, what are my german tax obligations?
If your property is purchased through a non-resident German company rather than in your own name, you are liable to German corporate tax payable instead of German income tax.
Non-resident companies with property(s) as their sole asset and have no permanent establishment in Germany are exempt of German trade tax
What are the German corporate tax rates due by non-resident companies?
The standard rate of German corporation tax for both residents and no-residents is 25%. A "solidarity surcharge" is also levied resulting in an effective rate of 26.375% which applies to companies which hold German property regardless of their residence.
I intend to sell my German property, what are my German capital gains Tax obligations?
If you make a gain when selling your German property you are liable to pay German Capital Gains Tax. The capital gains rate is the same as the German personal income rate. Profits from the sale of private real estate that has been held for more than 10 yeras, or from the sale of securities that have been held for more than 12 months are exempt from German capital gains tax. Capital gains from the sale of real estate that is re-invested in the purchase of alternative real estate is exempt from tax, subject to certain conditions.
As a non-resident owner of a German property, am I due to pay German local taxes?
Die Grundsteuer tax is applied on real estate in Germany. It is a communal tax levied by the local authority in each region with tha rates varying from location to location.
