Article overview
Can you dumb down NATO SOFA for German tax purposes?
Absolutely, and while there a few really tricky aspects (please see this article), most aspects boil down to the question of whether you are in Germany with an intent to return or not. Yes, this
US retirement accounts in Germany – most tax-relevant aspects
Mostly all of our clients have been saving towards a US retirement plan of some kind (403b, IRA TSP, 401k, Roth versions…) over the course of their career. When they retire to Germany naturally the
I have a disability rating from the VA – tax consequences in Germany?
By now you have probably realized that many of our clients are former members of the US Military. As such most of them receive VA benefits. Their tax treatment has already been discussed in a
I am working from home – can’t I make this a tax deduction?
Generally speaking, the answer is yes for both the German and the US tax world. However, both concepts are not identical, so let’s look at the similarities and differences. Under US law, the “Business Use
UGMA/UTMA accounts – tax aspects in Germany
UGMA and UTMA accounts – in our opinion – are great ways of transferring assets to the next generation without really rendering control over them, making sure any benefiting minor will have a chance to
Insurance payouts– tax aspects in Germany
Many of our clients have entered into life or retirement insurance contracts – or maybe even a combination of the two. While this is a great way to financially take care of yourself and your
SGLI and VGLI for US Military– tax aspects in Germany
The Servicemembers’ Group Life Insurance (SGLI) is a life insurance policy which can provide a death benefit of up to $500,000. Likewise the Veterans’ Group Life Insurance (VGLI) may allow you to keep your life
I am trying to quit smoking – can I make this a tax deduction in Germany?
We all know smoking is not a great health choice. Most of us have dabbled with it though and some are still enjoying the vice. For those though who want to get rid of it,
I donated substantially – are my donations tax-deductible?
Giving money to a noble cause is something which in most countries will earn you a tax break of some kind. Obviously, there are differences in what the various governments of this world consider a
US retirement accounts in Germany – update starting 2025
Starting 2025 German tax law holds some changes in how it will tax distributions from US retirement plans. Some basic understanding upfront: As laid out in previous articles before, it is currently and up until
Is there a rule of thumb of what I can make a tax deduction in Germany? Yes and no – an overview!
When going through a year one accrues all sorts of expenses for a variety of reasons. What would be more logical than trying to cut the tax office in on some! However, for Americans it
Does Germany have a (Foreign) Housing Exclusion?
The Foreign Housing Exclusion – or FHE – is a means provided by the IRS to accommodate for expenses that come with living and working overseas. The US law has its very own framework, when
Tips – to tax or not to tax?
Tips are a daily occurrence especially in the food and restaurant industry. And even outside the hotel and entertainment industry it is not uncommon to tip somebody as an immediate way of showing appreciation. Tips
Military Survivors and The HEART Act – tax aspects in Germany
We have discussed in previous articles which benefits Military Survivors can receive on an ongoing basis. In this article, we want to touch on a very specific benefit provided through The HEART Act. We think
I am switching my TSP to a regular retirement plan. Does this come with tax consequences in Germany?
While it does likely sound a bit uncommon switching your TSP retirement plan to a regular retirement plan (Roth or not) can at times make sense. It can be useful for people who would be
Difference sec 179 depreciation German tax law
Earlier (see article“Can you tell me differences between US and German tax law?”) we covered some general differences between US and German tax law. In this article we would like to highlight the differences between
I own a US Corporation to make sure I keep my German and US tax effects separate. Are there any issues I should be aware of?
Ouch, ouch ouch….. starting or owning a US corporation – or just any corporation (equivalent) anywhere – while in German to keep US and German tax consequences apart is an area of great misunderstandings and
My 1099-DIV shows a capital gain. Why do I have to report capital gains from my mutual funds to the Germans if I never sold any shares of that mutual fund?
We actually run into this question quite a bit. Look at it like this; A mutual fund is a regulated investment company that pools funds of investors allowing them to take advantage of a diversity
I made bank on crypto sales – how much taxes do I owe in Germany?
Crypto was likely one of the hottest assets in the market in recent years – even more so than real estate. So, congratulations on getting into the business in time, and getting out when it
I own gold and want to sell it – what are my tax consequences in Germany?
Gold is a very popular asset to own, and some advisors even recommend about 10% of your total portfolio should be made up of gold. Some of our clients also inherit these assets as their
Am I going to owe any taxes when I sell my apartment?
Real estate can be a great way to invest. Especially in the last decade it has been an asset category whose development has been hard to beat, and it is an area to which mostly
9/11 and beyond: How US Veterans in Germany can navigate taxation on military benefits
Everybody remembers where they were when the towers came down today 23 years ago. This date marked the beginning of the longest combat operations in US Military history – the Global War on Terror. In
I am starting a business, how does this affect my German taxes?
It is not uncommon for our American clients to make a living not by working for somebody else, but working for themselves. This pertains to both regular Americans living and working in Germany but also
I am paying a ton on my US student loans – is there a way to make this a German tax deduction?
Student loans are a common way for US students to pay their way through college. However, as with any loan they need to be paid back. So, since there is a good chunk of money
We are renting/selling our home in the US – do we need to report this in Germany?
Since it is far more common in the US to own real estate it is also pretty common place to use a US home for creation of rental income, or sell it when moving. As
Can you tell me differences between US and German tax law?
We covered in a previous article why filing German returns usually feels like a fairly tedious process where the taxperts need to ask all these detailed questions about single items and then still need to
I run an HBB in Germany and am here under SOFA, what does opting for “unbeschränkte Steuerpflicht” mean for me?
Running a home-based-business (HBB) is a popular way for Military spouses to start or continue their own career while following their husband’s career in the US Military. As default mechanism NATO-SOFA stipulates that any time
I received US stimulus checks during COVID. Are those taxed in Germany?
US stimulus checks were a one-time benefit (even though paid in increments) during the COVID pandemic during the years 2020-2022. Essentially the US government helicoptered checks to mostly every single American (with a few exceptions
We are in Germany under SOFA, can there be tax consequences?
First of all, thank you for your service and protecting all of us. We certainly prefer learning English in Germany rather than being forced to familiarize ourselves with Russian – at least the ones of
Tax number and tax ID, all the same, right?
Yes and no – and trust us, we understand how this feels confusing. First things first. When you register at town hall upon moving to Germany the German “Bundeszentralamt für Steuern” or “BZSt”, essentially the
Partnered with
Connect with your trusted taxperts
Send us your tailored request to receive a personalized offer and detailed information on how to become a client. Let us guide you through each step toward the support you need.