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U.S. Expat Taxes

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Pricing

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Standard

€369

/$459

Ideal for Salaried Individuals

Everything in Standard

Foreign Account Tax Compliance (FATCA)

Foreign Earned Income Exclusion

Foreign Tax Credits

Foreign or U.S. Wages

Refundable Child Tax Credit

Social Security Benefits

Tax Treaty Benefits

Premium

€469

/$589

Ideal for Self-Employed Individuals & Investors

Everything in Standard +

Dividends & Distributions

Individual Retirement Arrangements (IRA)

Interest Income

Miscellaneous Income

Non-Employee Compensation

Rental & Royalty Income

Sales of Securities

Schedule K-1

Self-Employment Income

Retiree package

€299

/$379

Ideal for U.S. retirees

Designed for Retirees with:

Social Security Benefits

Pensions, Annuities, and Retirement Account Distributions

Streamlined Filing - 3 Years

€919

/$1149

Ideal for Unintentional Non-Compliance

Everything in Premium +

Form 14653 (Certification of Streamlined Filing Eligibility)

Add-ons

€

/$9991

Ideal for clients with additional or non-standard tax requirements.

All the add-on prices

Certificate of Coverage Application Assistance - €155

Non-US Bank Accounts (FBAR) - €69

Renounce U.S. Citizenship (Form 8854) - €255

Entity Classification Election (Form 8832) - €99

Migration Year Optimization Calculations - €99

Non-US Mutual Fund (Form 8621) - €75

Non-US Partnerships (Form 8865) - €399

Non-US Disregarded entity (Form 8858) -€399

Non-US Corporations (Form 5471) - €399

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News

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FAQ

All your questions answered

Many US expats in Germany want to know one thing. How does Germany treat US retirement accounts like 401(k)s, traditional IRAs, and similar plans? Germany taxes the worldwide income of German tax residents. But the US–Germany tax treaty gives special treatment to certain US tax-favored retirement plans.

Tax-advantaged schemes under the treaty

Germany often treats some US retirement plans as tax-advantaged schemes under the tax treaty. Your plan may sit on the treaty's list of qualifying pension or retirement schemes. If so, dividends, interest, and capital gains that stay inside the plan may avoid German tax for now. This holds true while the money stays in the account.

This matters a lot for long-term savers. It means the German tax office may not tax the yearly growth inside a recognized US retirement plan. That happens even though Germany would normally tax foreign investment income.

Not every US plan qualifies

Not every US account with a US tax benefit gets the same treatment in Germany. The treaty uses a defined list and set criteria. So these details matter:

The exact type of plan you hold (for example, employer 401(k), 403(b), certain IRAs)
Whether the plan meets the treaty's conditions for a qualifying pension or retirement scheme
Whether the contributions and benefits look truly retirement-focused from a German view

A plan that does not qualify as a tax-advantaged scheme gets different treatment. Germany may treat the account like an ordinary investment account. That means it could tax dividends, interest, and capital gains each year, even if you take no money out.[1]

Why plan-specific advice is essential

The rules run deep, and the treaty points to set types of schemes. So the answer for a US 401(k) can differ from the answer for a Roth IRA, a SEP-IRA, or another employer plan. Germany's treatment of future payouts (when you actually take money out) can also differ from its treatment of the yearly growth inside the account.

For that reason, US expats in Germany usually need a German tax advisor to:

Pin down exactly which US plan(s) they hold
Check whether the plan counts as a tax-advantaged scheme under the treaty
Confirm whether dividends, interest, and capital gains inside the plan skip current German tax
Explain how payouts will be taxed when you take them later[1]

Practical takeaway for US expats in Germany

You hold US retirement accounts and live in Germany as a German tax resident. Do not assume all your US plans get the same shelter from German tax that they get from US tax. The safest move is simple. Have a German tax professional check your 401(k), IRA, and other US plans against the treaty rules. Then you will know which accounts are protected and which may create taxable income each year in Germany.

When non-residents may still need to file

German tax residency is not the only thing that matters. Even if you live abroad and are not treated as a German tax resident, Germany can still tax certain income that arises from German sources.

This is especially important for Americans and other expats who assume that living outside Germany automatically means they have no German filing requirement. In many cases, that assumption is wrong.

Common examples of German-source income

Some of the most common examples of German-source income for non-residents include:

- Rental income from property located in Germany.

- Salary linked to work physically performed in Germany.

- Income connected to a German employer where part of the work is actually carried out inside Germany.

If you own a property in Germany and rent it out while living abroad, Germany can tax that rental income and may require a German tax return reporting that income.

Working in Germany for a German employer

Employment income can also create a German tax filing obligation, even if you live in another country most of the time. In the webinar example, the speaker explained that if you live abroad but work for a German company and perform some of that work in Germany, Germany can tax the portion of salary linked to the days worked physically in Germany.

That means the location where the work is actually performed matters. It is not only about where your employer is based or where your salary is paid.

Even one day can matter

This is the part many people miss: the filing obligation can start surprisingly early. According to the webinar example, if you live abroad, work remotely for a German company, and are in Germany for just one working day, Germany may tax the salary portion for that one day and require a German tax return for it.

That does not mean every one-day visit automatically becomes a major tax case, but it does show how quickly non-resident German tax exposure can arise.

Why this catches people off guard

Many cross-border workers think only full relocation creates German tax issues. In reality, a property in Germany, a few workdays in Germany, or other German-connected income can be enough to trigger filing obligations even when you remain non-resident.

This is particularly relevant for:

- Americans living elsewhere in Europe

- Remote workers employed by German companies

- People with German rental property

- Employees who travel into Germany for meetings, projects or short assignments

Why professional advice often helps

Once German-source income is involved, the next question is usually not just whether Germany can tax the income, but how much of it Germany can tax and whether a tax treaty changes the result. In practice, that often requires looking at the type of income, where the work was physically done, and whether any relief is available in your country of residence.

For that reason, non-residents with German-source income often need a German tax advisor even if they do not live in Germany full time.

‍

Main ways tax residency starts

You are typically tax resident in Germany if:

- You rent or own a flat or house in Germany.
- You have a room you can access at any time, for example because you have your own key.
- You spend more than 183 days in Germany in a year.

What counts as a place of residence

A place of residence can be broader than many Americans expect. It can be an apartment in your own name, a house you own, or even a room in someone else’s home, as long as you can use it whenever you want and you are not just there as a short-term guest.

If you are registered at that address and can come and go freely, the German tax office may see you as tax resident even earlier than you expected. This catches some US expats off guard because they focus only on the 183-day rule and forget that housing access can matter on its own.

How the 183-day rule works

The 183-day rule is based on what Germany calls your habitual abode. If you spend more than 183 days in Germany during the year, you are usually treated as tax resident there, even if the lease, bills or property title are not all in your name.

This means you can become tax resident through time spent in Germany even if your housing setup looks informal.

Short visits versus moving to Germany

Short visits alone usually do not make you tax resident. If you are visiting family for a holiday, staying briefly, and there is no real plan to settle in Germany, that alone is normally not enough.

But things can become less clear if a short stay turns into something longer. If you arrive thinking you will stay a week or a month, then decide to remain in Germany, the date you effectively moved can become very important later, especially if you already had a key and a place you could access at any time.

Why the exact date matters

Once you are tax resident in Germany, the basic rule is that Germany can tax your worldwide income, unless the US-Germany tax treaty gives taxing rights to another country or provides relief from double taxation. That is why the exact start date of German tax residency matters so much for Americans living in Germany. It can affect when Germany starts looking at your salary, investments, rental income and other foreign income.

Why this matters for US expats

For Americans in Germany, tax residency is one of the most important issues to get right early. If you split time between countries, stay with friends or family, or move gradually rather than all at once, it is easy to become German tax resident without realizing it.

In those borderline cases, it often makes sense to have a German tax advisor review your housing, travel days and move timeline so you know exactly when your German filing obligations began.

Yes, in many cases you do. If you are a US citizen living in Germany and you are considered a tax resident there, you generally need to file a German tax return, even if you also file a US tax return each year. For many Americans in Germany, this is one of the first big tax surprises, because filing in the US does not replace your German filing obligations.

You are usually treated as tax resident in Germany if you have a place of residence there or if you spend more than 183 days in Germany during the year. A place of residence can be broader than many people expect. It can mean a flat or house that you rent or own, but it can also mean a place you can access at any time, for example if you have your own key and the arrangement is not just a short holiday visit.

Once you are tax resident in Germany, the basic rule is that Germany taxes your worldwide income. That can include:

‍Salary from a German employer
Salary earned abroad after you became German tax resident
US rental income
Dividends, interest and capital gains from US accounts
Other foreign income, depending on the facts

That does not always mean Germany gets final taxing rights over every type of income. The US‑Germany tax treaty can change which country taxes certain income first, and it can also help prevent double taxation through exemptions or foreign tax credits. But even when income is not fully taxed in Germany, it may still need to be reported on your German tax return.

This is where many Americans in Germany get caught out. Some assume they do not need to file because their employer already withholds German wage tax from payroll. In some simple cases, for example if you worked the full year for one employer, had no other income, and were in the standard tax class, there may be no filing obligation. But many US expats do not fit that simple pattern, especially if they have US investments, rental income, a mid‑year move, freelance income, or a spouse with a different tax position.

A mid‑year move can be especially tricky. If you move to Germany partway through the year, Germany may tax only the income you earned after the move, but it can still use your earlier worldwide income to determine the tax rate on your German income. This is often called the progression rule, and it can lead to a higher German tax bill than many new arrivals expect.

Key Takeaways

The key takeaway is simple: if you are an American living in Germany, do not assume your German employer or your US tax preparer has fully covered your German filing duties. If you are tax resident in Germany, there is a strong chance you need a German tax return, and the return may also need to include information about your US income and assets.

A few common signs that you may need to file a German tax return:

You moved to Germany during the year
You have a rental property in the US
You have a US brokerage account
You freelance or run a side business
You are married and your spouse’s situation affects your filing
You received mail or notices from the German tax office

For Americans abroad, the safest approach is usually to coordinate both sides properly: a German tax advisor for the German return and a US expat tax specialist for the US return. That helps you stay compliant in both countries and reduces the risk of missed reporting, double taxation issues or avoidable penalties.

Get in Contact

+1 646-517-0493

+31 850 160 014

info@taxbrella.com

Keizersgracht 756, 1017 EZ Amsterdam, Netherlands

P.O. Box 17208, 1001 JE Amsterdam, Netherlands

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