Taxes When Moving Away — What You Still Owe the Tax Office

Tax Liability Doesn't End Immediately

When you leave Germany, your unlimited tax liability ends on the day of deregistration. However: In the year you leave, you must still file a Steuererklärung (tax return) — and it can even be worthwhile!

Final Tax Return

What Must You Report?

• Income from January 1 until the day of deregistration
• All types of income: salary, rental income, capital gains, freelance income
• You will be treated as a beschränkt steuerpflichtig (person with limited tax liability) for the rest of the year

Why Is It Worthwhile?

• You likely overpaid income tax (because monthly withholding tax is calculated based on full-year income)
• You'll receive the difference refunded — often several hundred euros!

Deadlines

• Tax return for the year of departure: by July 31 of the following year (with tax advisor: extended until end of February)
• Also possible from abroad — online via ELSTER or by mail

Important Points

Address Change at Tax Office

Inform the tax office of your new address abroad so the tax assessment reaches you.

Bank Account

Provide a German bank account for the refund. Some tax offices also transfer abroad, but it takes longer.

Capital Gains Tax

If you keep German bank accounts or securities accounts:
- Capital gains remain subject to German capital gains tax (25% + solidarity surcharge)
- You can request an exemption if your home country has a double taxation treaty with Germany

Rental Income

If you keep a property in Germany:
- Rental income remains taxable in Germany
- Annual tax return as a person with limited tax liability is required

Double Taxation Treaties (DTA)

Germany has agreements with over 90 countries that prevent double taxation of the same income. Check if your destination country has a DTA — generally:
- Employment income is taxed in the country of residence
- Real estate income is taxed in the country where the property is located (Germany)
- Pensions — varies depending on the treaty

Tax Checklist for Moving Away

• ☐ Deregister with tax office (notify new address)
• ☐ Keep final payslips
• ☐ File tax return for year of departure
• ☐ Update exemption request for German bank accounts
• ☐ Check double taxation treaty
• ☐ Consult tax advisor (for properties, businesses, complex cases)

Tips

• ELSTER works from abroad — use it for your tax return
• Keep all payslips and certificates
• If you stay less than 6 months in your departure year: special regulations may apply
• A German tax advisor can file the return for you — even remotely