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Transfer money from UK to Germany

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If anyone can point me in the right direction to find out more about this, I'd be very grateful as I'm not having much luck

 

Basically, if I were to close an account in the UK and then transfer the money across to a German bank account, would I be hit with a tax on it?

 

Cheers for any thoughts!

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It doesn't matter where in the world you keep your money.

 

You start owing tax only when your assets grow, e.g., when you earn interest or dividends.

 

If you're a resident of Germany, you have to declare your world-wide earnings, including interest from British or other bank accounts, for which you will then be asked to pay the 25% Abgeltungssteuer to the Finanzamt, regardless of whether you were also charged tax-at-source in Britain.

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I'v e never been double taxed on interest from UK savings, as long as I've submitted the statements of tax deducted from the UK bank.

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As far as I know, if you are a resident of Germany you should instruct your UK bank not to withhold the taxes they normally withhold for UK residents. You don't have a choice of paying tax there, rather than here.

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... If you're a resident of Germany, you ... will then be asked to pay the 25% Abgeltungssteuer to the Finanzamt, regardless of whether you were also charged tax-at-source in Britain.

 

Well, that could be a confusing statement to someone facing taxation in Germany for the first time. Your interest, dividends or whatever will be taxed together with all your other earnings according to the FA rules. Depending on your situation and the amounts concerned, this might even mean not taxed at all.

 

 

 

 

As far as I know, if you are a resident of Germany you should instruct your UK bank not to withhold the taxes they normally withhold for UK residents. You don't have a choice of paying tax there, rather than here.

 

Banks might agree, but Nationwide Building Society won't. I have an account (intended for UK residents) with them dating from long before I left the UK. I've tried to get them to stop deducting tax at source every year because it's a pain to recover the monies from HMRC, but they say they can't do this and recommend I transfer the monies to an account (intended for non-UK residents) at Nationwide Isle of Man. Needless to say NW IoM can't offer the same sort of account...

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Ah, in the case of large transfers from/to other countries (some say > 10,000 Euros, others say > 15,000 Euros) German banks tend to make records and send so-called Kontrollmitteilungen (control notification) to German authorities.

This doesn't mean you're not permitted to do that or will get hit by a tax, but your paper trail gets louder, as it were. This is about money laundering and terrorism financing laws - I'm sure PandaMunich can enlighten us about this.

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I have an account (intended for UK residents) with them dating from long before I left the UK. I've tried to get them to stop deducting tax at source every year because it's a pain to recover the monies from HMRC, but they say they can't do this

 

That's one of the reasons many financial institutions don't want to deal with non-residents.

 

Regarding the Finanzamt, since you live in their territory, they will probably want to have their cut (Abgeltungssteuer), too. I don't know if, and to what extent, having paid tax to the wrong country (i.e., the tax-at-source automatically deducted and sent to HMRC) can offset your liability with the Finanzamt.

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You can transfer and/or exchange large sums e.g. using Ozforex or similar service companies, which is better than carrying it in your socks because you can better control the exchange rate you get.

 

You won't be taxed, but a big enough transaction, or many multiple transactions, might be seen as currency trading for profit. Any profit would be subject to tax. HMRC and the German equivalent do monitor large trasfers of cash, and you can expect a letter from them saying e.g. 'we know what you're doing'.

 

But if you are just someone moving their savings from one country to another they won't do any more than that.

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Transferring a large 5-figure sum from the UK many years ago got me pulled over and questioned by customs in the UK about my financial arrangements every friggin time I went back to the country. It even happened on the way out once or twice, despite the absence of any kind of exit check.

 

It only stopped a couple of years ago (interestingly when I renewed my passport). No tax issue, but be aware there is a highly sensitive "radar" for these things and you may find using your passport will set off various alarms.

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This doesn't mean you're not permitted to do that or will get hit by a tax, but your paper trail gets louder, as it were. This is about money laundering and terrorism financing laws - I'm sure PandaMunich can enlighten us about this.

 

It just means filling in a form for the yearly statistic, for details please see Limits on international money transfer.

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Transferring a large 5-figure sum from the UK many years ago got me pulled over and questioned by customs in the UK about my financial arrangements every friggin time I went back to the country. It even happened on the way out once or twice, despite the absence of any kind of exit check.It only stopped a couple of years ago (interestingly when I renewed my passport). No tax issue, but be aware there is a highly sensitive "radar" for these things and you may find using your passport will set off various alarms.

 

I wonder what might have triggered that. Twelve years ago I also made a large transfer(6 figures) from the UK to buy a property in Germany and neither the UK nor Germany ever raised any questions. I travel to the UK about 10 times a year and I was never questioned. Was your transfer more recent? I get the impression that during the last decade or so governments have become more and more antsy about money moving between countries (9/11, tax havens and all that...)

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... I don't know if, and to what extent, having paid tax to the wrong country (i.e., the tax-at-source automatically deducted and sent to HMRC) can offset your liability with the Finanzamt.

 

I've never tried offsetting. All I do is to ask HMRC each April to reimburse the monies since I'm non-resident for tax purposes. It's a pain to write the letters & fill in the forms, but the money has always ultimately arrived. In the worst case I've experienced, it took 11 months to happen, but luckily it didn't matter much because it was only a few hundred and not a few thousand pounds and with interest rates at 0.5% not too many bottles of Scotch were lost.

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I wonder what might have triggered that. Twelve years ago I also made a large transfer(6 figures) from the UK to buy a property in Germany and neither the UK nor Germany ever raised any questions. I travel to the UK about 10 times a year and I was never questioned. Was your transfer more recent? I get the impression that during the last decade or so governments have become more and more antsy about money moving between countries (9/11, tax havens and all that...)

 

It was 2007ish, my legally-obtained money (sale of a property, savings), transferred ultimately in order to buy a property. The transfer was made by one of the online specialist clearing houses as they offered far better rates than the banks. I didn't inform anyone, fill in forms, register anything but it definitely raised a flag somewhere.

 

This is a different issue to the carrying of cash over borders, where you are perfectly entitled to carry as much as you like, but if caught with more than €10,000 without actively declaring it can expect considerable trouble. There's also a technical requirement to register some non-cash transfers over (I think) €10,000 but that's supposedly for statistical purposes and I'm not aware of any noteworthy consequences for not doing it.

 

My understanding of the Abgeltungssteuer is, if you have accounts in other EU countries you have the option of paying the 25% withholding tax there, or having interest tax-free and then putting it on your tax return (because if you don't pay tax the foreign authorities theoretically tell your home authority about the income to ensure it does get taxed).

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Walmart does cheap money transfer now.

 

http://www.denverpost.com/business/ci_25590177/wal-mart-jumps-into-money-transfer-business

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Hi everyone,

I have a related question concerning moving money from the UK to Germany.  Since 2009 I I have a UK Share Account that now has roughly 200K GBP of shares. My total taxable income over this period has varied between 5K and 9K GBP per year, after deducting my UK personal allowance. I have employed a UK accountant and have paid all related UK taxes. However, I am now thinking of moving my shares to a new German Shares Account. My question is: will the act of moving my Shares Account somehow trigger the Finanzamt in Germany to add my UK Total Taxable Income over the last 10 years or so to my income as a consultant here in Germany? As I result, will I be liable in Germany for 25 percent tax on my past UK Total Taxable Income or even Total Income?  I would appreciate some advice on this, as I do not wish to "open up a can of worms". Thanks for any advice in advance.

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Hire a German tax advisor who has a good understanding of the relevant dual taxation agreements etc. @PandaMunich is a respected member of the TT community who over the years became a tax expert and is now fully qualified to offer advice of this sort. You can find her website here.Note:- I have never used Panda's professional services, but her advice on the forum has always been well received. Other tax advisors are available.

 

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Just wanting to update, as we are looking to move money from the UK to Germany in a large amount to buy a tiny overpriced accommodation in bayern...   Any suggestions..? I saw transferwise but would be open to recommendations.

 

Thanks in advance!

Andy

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