Germany · Tax System
Corporate tax, VAT/GST, personal income tax, capital gains, and filing obligations.
AI-drafted, editorially reviewed. Confirm specifics with the official authority.
When this country treats you as a tax resident
Have a freely available dwelling in Germany, OR a continuous stay of more than six months (it can straddle two calendar years) = resident. Dual residency resolved by treaty tie-breakers only.
- Primary test
- Composite test
- Day threshold
- 183 days
How days are counted: Wohnsitz (domicile) OR habitual abode (continuous 6-month presence)
Also makes you resident
- Test focuses on "freely available" dwelling, not lease length
Tax authority: gesetze-im-internet.de
Tax residency is decided separately from immigration status — these tests can make you a tax resident whatever visa you hold, and leaving a visa behind does not by itself end them.
Count your days against this rule Compare residency tests across countries
Germany taxes income progressively (with a solidarity surcharge for higher earners and church tax where applicable) and levies VAT on most goods and services. Tax residents are taxed on worldwide income; tax classes affect monthly withholding.
Companies file with the local tax office (Finanzamt) under the federal framework. Corporate profits are subject to corporate income tax plus a solidarity surcharge and municipal trade tax; VAT applies to most supplies.
- Corporate income tax is 15% plus a solidarity surcharge; municipal trade tax brings the combined rate to roughly 30%.
- The standard VAT rate is 19%, with a reduced 7% rate for certain goods.
- Filing is handled electronically through the ELSTER portal.
- 1
Determine your tax residency
You are generally German-resident for tax if you have a home or habitual abode in Germany; residents are taxed on worldwide income.
- 2
Get a tax identification number
You receive a tax ID (Steuer-Identifikationsnummer) automatically on registration; a separate tax number (Steuernummer) is issued by the Finanzamt for filing.
- 3
Understand the taxes that apply
Identify income tax (Einkommensteuer), the solidarity surcharge, church tax (if applicable), social contributions, and VAT (Umsatzsteuer) for businesses.
- 4
Have wage tax withheld
Employees have wage tax (Lohnsteuer) and social contributions withheld each month based on their tax class (Steuerklasse).
- 5
File your return
File the income tax return with the Finanzamt via ELSTER; the deadline is typically 31 July of the following year (later if using a tax adviser).
- 6
Pay, keep records and get advice
Pay any balance, keep records, and get advice for cross-border and tax-class questions.
- Tax residency determined (home/habitual abode)
- Tax ID (Steuer-ID) + tax number (Steuernummer)
- Applicable taxes identified (income tax, solidarity surcharge, church tax, VAT)
- Wage-tax withholding + correct tax class
- Income tax return via ELSTER (by ~31 July)
- Social-contribution registration
- Records kept
- Advice for cross-border/tax-class
- Federal Central Tax Office (BZSt)
Federal tax administration.
- ELSTER
Official electronic tax-filing portal.
Frequently asked questions
What are tax classes (Steuerklassen)?
Tax classes determine how much wage tax is withheld based on marital and family status; they affect monthly take-home, reconciled in the annual return.
Is there church tax?
Registered members of certain churches pay a church tax collected with income tax; not being a registered member avoids it.
Am I taxed on worldwide income?
Tax residents are taxed on worldwide income, subject to double-tax treaties; non-residents are taxed on German-source income.
Government portals
- Federal Government of Germany — Germany's Federal Cabinet official website — policy, legislation, news, and government programs
- Federal Office for Migration (BAMF) — German visas, EU Blue Card, asylum, integration courses, and permanent residency
- Federal Central Tax Office (BZSt) — Tax ID (IdNr) registration, tax identification lookup, withholding tax refunds — the key authority for foreign taxpayers in Germany