Filing your tax return in Germany as a French expatriate requires following precise steps and thoroughly understanding your specific tax obligations. Here’s what you need to know to effectively navigate the German tax system.
1. Tax Obligation
As an expatriate in Germany, you are obliged to pay taxes on your income if you have a residence in Germany or if you usually reside in the country for more than six months (183 days) within a calendar year. This obligation applies to all your worldwide income.
If you are an employee, income tax is automatically deducted from your salary. Your employer is also responsible for deducting the solidarity surcharge, as well as, where applicable, the church tax (Kirchensteuer). Furthermore, they pay your contributions to the statutory social insurance schemes, including unemployment, health, nursing care, pension, and accident insurance.
2. Income Tax Amount
Tax is calculated on your annual income after deducting exempt amounts. In 2024, the basic tax allowance is €11,604 for single individuals and €23,208 for married couples or cohabiting partners. Beyond these thresholds, tax is applied to the excess income at a progressive rate reaching up to 45%.
If you receive investment income, such as bank interest in Germany, this is also taxed. The flat rate for capital income (Kapitalertragsteuer) is 25%, to which the solidarity surcharge and possibly the church tax are added.
3. Income Tax Return
Each year, you must submit an income tax return, with specific rules depending on your situation (for example, posted employee or cross-border commuter). The filing deadline is generally July 31 of the following year. However, if you engage a tax advisor (Steuerberater), you benefit from an extension until February 28 (or 29) of the following year.
Conclusion
For more detailed advice, it is recommended to consult the tax service for non-resident individuals in France or to explore the resources available for expatriates in Germany. Also ensure you check your tax obligations in your country of residence to comply with all current regulations. Thanks to the Franco-German tax treaty, you can avoid double taxation by correctly declaring your income in both countries and benefiting from appropriate tax credits.
Contact us today for personalized advice on your tax return in Germany and to optimize your international tax situation.