Field help
Residence in Germany
Specify the period in which you were resident in Germany in 2024.
Please only provide information here if you moved to Germany or moved abroad during the course of 2024.
If you had your residence partially in Germany and partially abroad during the tax year, you were not fully taxable in Germany for the entire year. For the period that you lived in Germany, you are a fully taxable person.
The foreign income received beyond this period and which is not liable to German income tax is taken into account in the calculation of income tax (so-called "progression clause" (Progressionsvorbehalt)).
Foreign income
Enter the total amount of foreign income that is not subject to German income tax. The income to be declared is the income received minus the expenses claimed.
Example: You have earned income abroad as an employee from January to July 2024. To determine the foreign income, you should deduct the foreign income-related expenses actually incurred in full from the foreign income (here: the foreign gross income).
Under German tax law, foreign income is only taken into account when calculating the tax rate that is applied to your taxable German income (progression clause).
The foreign income must be determined in accordance with German tax law. In accordance with section 34d of the Income Tax Act (EStG), the total foreign income is comprised of:
- Income from agriculture and forestry carried on in a foreign state,
- Income from commercial business abroad,
- Income from self-employment carried out abroad,
- Income from the sale of assets abroad,
- Income from employment abroad,
- Income from capital assets if the debtor has a residence, management or registered office abroad or if the capital assets are secured by foreign real estate,
- Income from renting and leasing abroad and
- Other income earned abroad.
The conversion of income in foreign currency must be done on a monthly basis using the European Central Bank's euro reference rate. However, it is not objectionable if wage payments received in a foreign currency are converted on the basis of an annual conversion rate - determined from the monthly published VAT reference rates, rounded down to the nearest 50 cents. (Ministry of Finance (BMF) letter dated Dec. 14, 2014)
Here is an overview of the annual conversion rates for the key foreign currencies.
Foreign income
Enter the total amount of foreign income that is not subject to German income tax. If you did not have any foreign income, enter "0" here.
If applying for unlimited tax liability or applying for the personal and family-related tax benefits, the amount of foreign income earned during the time abroad which was not subject to German income tax must be checked.
This income is taken into account when determining your tax rate (so-called "progression clause (Progressionsvorbehalt)". This means that the income is used as the basis for stipulating the rate of tax you need to pay on your taxable income.
The conversion of income in foreign currency must be done on a monthly basis using the Euro reference rate from the European Central Bank. However, it is not objectionable if wage payments received in a foreign currency are converted on the basis of an annual conversion rate - determined from the VAT reference rates published monthly, rounded down to the nearest 50 cents. (Ministry of Finance (BMF) letter dated 14.12.2014)
Here is an overview of the annual conversion rates for the key foreign currencies.
Did Partner A move to Germany or abroad in 2024?
Select "yes" if you either moved to Germany or moved abroad. Select "no" if your residence did not change throughout the year.
A change of residence during the year means that you are only fully taxable in Germany during your stay.
Foreign income earned during your stay abroad is generally tax-free in Germany, but it may increase the tax rate through the progression clause.
... including foreign investment income
Specify the foreign capital gains which are subject to withholding tax or which would be subject to withholding tax in Germany.
If applying for unlimited tax liability or applying for the personal and family-related tax benefits, the amount of foreign income earned during the time abroad which was not subject to German income tax must be checked.
Income in foreign currency must be converted on a monthly basis using the euro reference rate of the European Central Bank. If wages are paid in the currency of the country of employment, they must be converted at the monthly average euro reference rate published by the European Central Bank (Ministry of Finance (BMF) letter dated 3.5.2018 ( IV B 2 - S 1300/08/10027, BStBl 2018 I p. 643).
Here is an overview of the annual conversion rates for the key foreign currencies.
... extraordinary income included therein
Specify the total extraordinary income that is not subject to German income tax.
Extraordinary income includes in particular:
- Remuneration for activities lasting several years
- Capital gains
- Compensations within the meaning of § 24 No. 1 Income Tax Act (EStG)
If applying for unlimited tax liability or applying for the personal and family-related tax benefits, the amount of foreign income earned during the time abroad which was not subject to German income tax must be checked.
Extraordinary income must be taken into account when determining the tax rate, (so-called "progression clause (Progressionsvorbehalt)"). This means that the income is included at the rate of one-fifth when determining your tax rate but not when determining your taxable income.
The conversion of income in foreign currency must be done on a monthly basis using the Euro reference rate from the European Central Bank. However, it is not objectionable if wage payments received in a foreign currency are converted on the basis of an annual conversion rate - determined from the VAT reference rates published monthly, rounded down to the nearest 50 cents. (Ministry of Finance (BMF) letter dated 14.12.2014)
Here is an overview of the annual conversion rates for the key foreign currencies.
... extraordinary income included therein
Specify the extraordinary income according to sections 34 and 34 b Income Tax Act (EStG). This must be income which is not subject to German income tax.
Extraordinary income includes in particular:
- Remuneration for activities lasting several years
- Capital gains
- Compensations within the meaning of sect. 24 No. 1 Income Tax Act (EStG)
Extraordinary income must be taken into account when determining the tax rate, (so-called "German progression clause (Progressionsvorbehalt)"). This means that the income is included at the rate of one-fifth when determining your tax rate but not when determining your taxable income.
The conversion of income in foreign currency must be done on a monthly basis using the European Central Bank's euro reference rate. However, it is not objectionable if wage payments received in a foreign currency are converted on the basis of an annual conversion rate - determined from the monthly published VAT reference rates, rounded down to the nearest 50 cents. (Ministry of Finance (BMF) letter dated Dec. 14, 2014)
Here is an overview of the annual conversion rates for the key foreign currencies.
Did Partner A live outside of Germany for the entire year 2024?
Select "yes" if you had neither a residence nor a habitual abode in Germany for the entire year 2024.
This information is relevant for determining whether you are subject to limited or unlimited income tax liability.
The conditions for applying for unlimited tax liability and possible tax benefits are queried further down on this page and are based on your details regarding residence, income, and nationality.
Did Partner B live in an EU/EEA country or Switzerland in 2024?
Select "yes" if you had your residence or usual place of abode in an EU/EEA country or Switzerland in 2024 – even temporarily.
This information is important because certain tax benefits (e.g. deduction of special expenses, spouse splitting, child allowance) are only granted if the residence was within the EU/EEA area or Switzerland.
Note: Even in the case of shared residence arrangements (e.g. Germany and EU abroad), "yes" must be selected if there was at least one residence in the EU/EEA area or Switzerland.
Did Partner A reside at least temporarily in a low-tax country?
Select "yes" if you lived in a low-tax country (so-called low-tax country) at least temporarily after moving out of Germany in 2024.
This information is only required if you moved abroad from Germany during the year 2024.
If you select "Yes", the tax office will check whether extended limited tax liability applies under § 2 AStG. This may mean that you remain subject to income tax in Germany on all income for up to 10 years after moving away – unless it concerns certain foreign income as defined in § 34c para. 1 EStG.
What is considered a low-tax country?
A country is considered to have low taxation if:
- the income tax for a single taxpayer with a fictitious income of 77,000 Euro is more than one-third below the German level,
- or a preferential tax rate (e.g. for foreign investors) is granted.
In case of doubt, the Federal Central Tax Office decides whether a low-tax country is involved (BMF letter dated 14.05.2004: Principles for the application of the Foreign Tax Act).
Tax deduction amounts according to sect. 50a of the Income Tax Act (EStG)
The following income of foreign payment creditors subject to limited tax liability (sect. 49 Income Tax Act (EStG)) is subject to the tax deduction procedure pursuant to sect. 50a of the Income Tax Act (EStG):
- Income generated by artistic, sporting, artistic, entertainment or similar performances (e.g. entrance fees, royalties, prize money, remuneration for participation in talk shows) and their domestic utilisation.
- Income from the transfer of rights utilised in Germany, for example, licences and copyrights (film rights, music rights, patent rights, etc.) but also of industrial, technical, scientific and similar experience, knowledge and skills ("know-how").
- Income from supervisory board duties in domestic companies.
The debtors of the remuneration paid are obligated to withhold, pay and declare taxes. The Federal Central Tax Office is responsible for carrying out the tax deduction procedure.
Did Partner A hold a share in a corporation?
Indicate here if you held a significant interest in a corporation or cooperative as defined in section 17 EStG in 2024.
This information is only required if you moved to Germany or abroad during the year 2024. In these cases, an exit tax under section 6 AStG may be relevant.
Important: This does not concern ordinary shares or traded securities in your portfolio.
Only significant interests of at least 1% of the shares you held at any time during the year are recorded – e.g. in a GmbH or comparable corporation.
The information is used for the correct tax assessment of any hidden reserves when changing residence.
Did Partner B earn income abroad in 2024?
Please select "yes" if the spouse earned income from abroad in 2024.
Income that is not subject to German income tax must be proven by a statement from the relevant tax authority in your home country. If you are a citizen of a member state of the European Union (EU) or of the EEA states Liechtenstein, Norway or Iceland and reside in one of these countries, use the form "Statement EU / EEA", otherwise the form "Statement outside EU / EEA".
Tax deductions on income (excluding pension income)
If you are subject to limited tax liability in Germany, tax deduction amounts will be withheld.
If you apply for unlimited tax liability, the tax deduction amounts already withheld are treated as advance payments.
You can only apply for unlimited tax liability if you also earn income in Germany. If you live abroad and continue to earn income in Germany, you are subject to limited tax liability.
In order to claim personal and family tax benefits, you must apply for unlimited tax liability.
