Australian citizen moving to Germany

Income in Australia only

Admin note: topic split
Hi, this is my first post here and I don't want to hijack the thread but have a related question.

I am an Australian citizen moving to Germany in 2 weeks (fortunately I have an Irish passport as well - thanks Grandad!!). I have a property in Australia that I will be renting out for a profit and also have a business that provides me with an ongoing income. I don't plan to look for a job for some time and so will be living off my income from Oz, whilst learning German and getting settled in.

I am guessing that I will have to register as a resident (within 3 months?) and organise health insurance etc, but I am not sure if (and if so at what point) I would need to inform the German govt of my rental and business income from Oz. Would it be only once I was working in Germany or once I register as a resident?

I realise that I am going to have to get some professional advice when I get to Germany but I am just trying to get an idea of where I stand before I go. Any information would be much appreciated.

Would it be only once I was working in Germany or once I register as a resident?
It would be once you start working.

You would only need to contact the Finanzamt immediately before you take up:

  • employee work, or
  • self-employed work
to get a tax number from them.

Then the reporting rhythm is once a year (except the VAT announcements, those have to be submitted up to the 10th of each month).

We report the previous year's income until 31. May by filling in the tax forms and submitting them, see the TT Elster wiki for step-by-step instructions.

Your Australian income won't be taxed again, but it will raise your own personal tax rate (Progressionvorbehalt) you have to pay on your German income (should you have any).

You can calculate the effect for yourself with this progression calculator:
Veranlagungsjahr: 2011
Einkommensteuertarif: Splittingtarif (if you're married) or Grundtarif (if you're single)
Zu versteuerndes Einkommen: your German income
Dem Progressionsvorbehalt unterliegende Ersatzleistungen und Eink├╝nfte: your income from Australia
and click on "Einkommensteuer berechnen"

Since we are talking about a country not in the EU, the whole discussion in the British rental income thread whether the Finanzamt will be interested in this foreign income is moot here. They will want to know about it.
Jaxxis, your situation sounds like mine, with the exeption that I dont have 'business' as such in Oz, but I do freelance/contract work for Australian companies. When I was in Oz, it was done by just invoicing them against my ABN.

I have only been here for one full german financial year... and have not yet submitted my 2010 German return. But this is the advice of my German tax adviser.

Now, I live in Germany. I contract to an Australian company. They pay me into my Australian bank account and this pays my mortgauge in my Australian house. The money never 'comes to' germany, but he tells me that I must pay german tax on it - because I live in germany. The big down side is, this means I have no Australian income to negatively gear my house against, and the germans dont care that I am loosing money on a house in Australia.

My advice.... get professional help, both in Oz, and once here in Germany.

Good luck
Thanks very much for the info guys. I'm definitely going to have to get some professional advice when I get here.
TT Logo
You are viewing a low fidelity version of this page. Click to view the full page.