In the year of moving to Germany, worldwide income is taxed in Germany from the time of moving to Germany, unless a double taxation agreement provides otherwise. We will be happy to check the international regulations.

The income before moving in is not taxable in Germany, but is used to calculate the domestic tax rate. Therefore, this income must be declared in the tax return. The adjusted tax rate is only applicable to German income. In such cases, the tax office focuses on examining the foreign income.

Provided the move to Germany was work-related, moving expenses can be claimed for tax purposes, e.g. flight ticket, moving services, double rent, real estate agent for the new flat in Germany.

A large portion of the tax consultant fee can be claimed as income-related expenses.

There are agreements with numerous countries to avoid double taxation. These agreements regulate which country has the right of taxation and how double taxation is avoided.

If there is no double taxation agreement, double taxation is avoided by crediting the foreign tax against the German tax.

Severance payments are subject to a special taxation procedure, the so-called one-fifth rule. This reduces the tax burden on severance payments, provided the conditions for this are met. We strongly recommend seeking tax advice in advance of an upcoming severance payment in order to ensure the greatest possible tax savings.