Nobbler

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Posts posted by Nobbler


  1. I wonder if somebody might be able to advise. My wife and I own our house that we live in in Germany. We have owned it for 5 years. I need to go back to live in the UK next year but my wife and children must stay in the German house for one more year after I leave (schooling reasons). My wife would then sell the German house before joining me in the UK. I have been told that if I don't live in the house when it is sold then my half of the profits would be subject to speculation tax. To avoid this I could gift my wife my half and change her to sole owner in the Grundbuch at a cost of around 3000€. Can somebody confirm this would be our best course of action, if it is certain to work (no issues with selling only one year after the change of ownership etc) and if there are any options that avoid the need to change the Grundbuch and avoid 3000€ cost.

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  2. I wonder if somebody might be able to advise. My wife and I own our house that we live in in Germany. We have owned it for 5 years. I need to go back to live in the UK next year but my wife and children must stay in the German house for one more year after I leave (schooling reasons). My wife would then sell the German house before joining me in the UK. I have been told that if I don't live in the house when it is sold then my half of the profits would be subject to speculation tax. To avoid this I could gift my wife my half and change her to sole owner in the Grundbuch at a cost of around 3000€. Can somebody confirm this would be our best course of action, if it is certain to work (no issues with selling only one year after the change of ownership etc) and if there are any options that avoid the need to change the Grundbuch and avoid 3000€ cost.

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  3. On 20/12/2019, 00:38:28, PandaMunich said:

     

    If your UK state pension is not a pension for government service, it would fall under article 17 (1) of the double taxation agreement and its monthly payouts would be taxed by Germany as soon as you become resident here.

     

     

    The problem is that this is a 2-step algorithm:

    1. you get the pension pot at age ??
    2. you then use the pension pot to buy an annuity

    The Finanzamt would immediately tax you at step 1, since at that point you can use that money from the pension pot as you like, e.g. you could take all the money and spend it.

    They see it as your free personal decision that you then purchase an annuity with it, but they will first make you tax the pension pot.

     

    *******************************************************************************

     

    Solution:

    To avoid having the pension pot payout taxed by Germany, you could still do this:

    1. move to Germany, register your address here and get married to your German GF.
      This would ensure your residency right even if you move away from Germany after Brexit, as I propose in step no. 3. 
      Besides, being married also has tax advantages as long as both spouses don't earn exactly the same.
       
    2. let the UK house, so that you have somewhere to move back to in step no. 3.
       
    3. shortly before you are scheduled to get the UK private pension pots, move back to the UK into your house (don't forget to de-register your address in Germany when you move away!) and benefit from the more advantageous UK taxation rules.
       
    4. then move back to Germany, register again and live happily ever after.

    I have a similar situation. I have been in Germany for 14 years with my wife and children. I want to start to take my UK private pension next year and can get 25% lump sum tax free if I am a UK tax resident. I have a house in the UK and can move back to it but my wife and children would need to stay here for schooling reasons. Can I achieve UK tax residency under such a situation? How long would I need to be in the UK? I would assume something like 14 months to span a full German tax year. Any comments much appreciated. Panda Munich seems quite knowledgable on this area....

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  4. On 20/12/2019, 00:38:28, PandaMunich said:

     

    If your UK state pension is not a pension for government service, it would fall under article 17 (1) of the double taxation agreement and its monthly payouts would be taxed by Germany as soon as you become resident here.

     

     

    The problem is that this is a 2-step algorithm:

    1. you get the pension pot at age ??
    2. you then use the pension pot to buy an annuity

    The Finanzamt would immediately tax you at step 1, since at that point you can use that money from the pension pot as you like, e.g. you could take all the money and spend it.

    They see it as your free personal decision that you then purchase an annuity with it, but they will first make you tax the pension pot.

     

    *******************************************************************************

     

    Solution:

    To avoid having the pension pot payout taxed by Germany, you could still do this:

    1. move to Germany, register your address here and get married to your German GF.
      This would ensure your residency right even if you move away from Germany after Brexit, as I propose in step no. 3. 
      Besides, being married also has tax advantages as long as both spouses don't earn exactly the same.
       
    2. let the UK house, so that you have somewhere to move back to in step no. 3.
       
    3. shortly before you are scheduled to get the UK private pension pots, move back to the UK into your house (don't forget to de-register your address in Germany when you move away!) and benefit from the more advantageous UK taxation rules.
       
    4. then move back to Germany, register again and live happily ever after.

    I have a similar situation. I have been in Germany for 14 years with my wife and children. I want to start to take my UK private pension next year and can get 25% lump sum tax free if I am a UK tax resident. I have a house in the UK and can move back to it but my wife and children would need to stay here for schooling reasons. Can I achieve UK tax residency under such a situation? How long would I need to be in the UK? I would assume something like 14 months to span a full German tax year. Any comments much appreciated. Panda Munich seems quite knowledgable on this area....

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  5. I read through this with interest as I may want to start taking my UK Final Salary Pension next year. I have the 25% lump sum tax free issue too of course due to living in Germany. I am prepared to go back to the UK for just over a tax year to start taking my pension and avoid the Germans taxing it as I have a house in both countries. However my family would have to stay in Germany (kids schooling). We may actually divide the family up a bit to get round the 'centre of vital interests'. I am going to an international tax specialist to see what my options may be but wondered if anybody on here also has some points to make that may help me? It is worth a lot of money to me and would be well worth it to incur considerable costs to achieve it. I am just awaiting the UK 2021 Budget to make sure no changes are made before I go to the tax specialist. Any views / help much appreciated.

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