Taxation on crypto currencies - please read before asking

241 posts in this topic

No, sorry, officially, you would have needed to submit a gift tax return within 3 months of receiving/giving a gift: http://www.erbrecht-einfach.de/schenkung/schenkungssteuererklaerung.html#Frist

and to then pay the gift tax.

But maybe it wasn't a gift but a loan, at 0% interest and to be repaid after 50 years? Because then you do not have to do a gift tax return and do not have to pay gift tax...

 

11 hours ago, IvanZ said:

so trading difference between altcoin and liquid coin will also be subject to the tax as far as i understood since it is happening within the first year of ownership

 

Yes, that is a taxable event, and you will have to tax the profit by declaring it in Anlage SO.

 

11 hours ago, IvanZ said:

convert it to EUR in 2019

 

If you had then kept the liquid coin for more than 1 year, the profit, i.e. their increase in value, would be tax-free.

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On 1/29/2018, 10:10:01, PandaMunich said:

Only currency that produced interest/dividends/income at least once has to be held 10 years for the profit from its sale to be tax-free, see §23 Absatz 1 Satz 1 Nr. 2 Satz 4 EStG:

4Bei Wirtschaftsgütern im Sinne von Satz 1, aus deren Nutzung als Einkunftsquelle zumindest in einem Kalenderjahr Einkünfte erzielt werden, erhöht sich der Zeitraum auf zehn Jahre;

 

However, since most POS coins require quite a large minimum investment before they earn you income, I think only very few posters in Toytown will have this problem: https://coinsutra.com/proof-of-stake-cryptocurrencies/

 

Would it legally be possible to divide coins into two different addresses, and only stake one of the groups, so one would be tax-free after 1 year and the other after 10?

 

Thanks.

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3 hours ago, dhayes said:

Would it legally be possible to divide coins into two different addresses, and only stake one of the groups, so one would be tax-free after 1 year and the other after 10?

 

You would have to do so from the very start. 

Once you earn interest/dividends/income with it, no matter how little, the whole batch becomes "tainted" and you have to keep it for at least 10 years if you want to get the profit a later sale free of income tax.

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Hi PandaMunich & others,

First of all, thank you so much for your replies on this topic. They are the reason I registered. I learned that a BTC:ETH trade is a sale (€), so thank you for that. Might I add another question? I am an EU citizen with heavy tax burden for crypto gains, which are not realised today. I consider moving to Germany as I speak the language. I traded some BTC and LTC to ETH but those trades only consist a few percent of my total portfolio. Most were acquired through Coinbase (the BTC:ETH trading was done on Gdax) and I can easily provide proof of original funds and all the purchases. Most of them were performed in Q3-Q4 of 2017. 

 

I now consider moving to Germany. I would sell a big portion of my portfolio one year after purchase (and probably exclude the BTC:ETH trades, as I don't want to sell my entire portfolio?). 

 

1. As per European regulation, you are a tax resident after spending six months in Germany (although I read your comment - you're a tax resident from the day you officially register), per fiscal year. In Germany, the fiscal year ends on December 31. What would you consider a safe period for selling my crypto (after the one-year long-term holding has passed)? Six months and one day? A full fiscal year (selling in 2019)? 

 

2. I don’t find exact information on this (https://europa.eu/youreurope/citizens/residence/residence-rights/index_en.htm), but does studying in Germany (and exiting my home country) qualify me as a tax resident? I am self-employed at this moment but I wouldn’t mind signing up for a German university study. I have enough cash funds to prove that I can support myself. I could sell my crypto in the years of studying, but I cannot seem to find if studying does make me a tax resident? 

 

3. What is considered a safe period for returning to my home country, starting from the first day of official relocation? Two years, three years? I find this whole situation (emotionally) difficult, but the tax burden in my home country is, compared to the amount of risk I’m taking (and the German system), absurdly high. (I’m taking into account the real chance of staying in Germany long-term.)

 

Also, I don’t mind sitting down with an attorney or lawyer. Any recommendations as to where to look (except for Google, which tells me little about their competence)? 

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59 minutes ago, beboy said:

1. As per European regulation, you are a tax resident after spending six months in Germany   (although I read your comment - you're a tax resident from the day you officially register), per fiscal year. 

 

Setting tax law (except VAT law) is still the prerogative of the individual Member State, not of the EU.

 

In Germany, unlimited tax liability is defined in §1 EStG:
     (1) 1Natürliche Personen, die im Inland einen Wohnsitz oder ihren gewöhnlichen Aufenthalt haben, sind unbeschränkt einkommensteuerpflichtig.

to happen when you either:

  • have a dwelling here, with dwelling being defined in §8 AO, see here for §8 AO in English (= register your address here at the Einwohnermeldamt):
         Persons shall be resident at the place at which they maintain a dwelling under circumstances from which it may be inferred that they will maintain and use such dwelling.

    or
     
  • do not have a dwelling here, but have stayed in Germany for more than 6 consecutive months, with short trips outside Germany not being a problem.
    If you come here just to visit, recuperate or for treatment, the period is extended to 1 year.
    See §9 AO, see here for §9 AO in English:
         Persons shall have their habitual abode at the place at which they are present under circumstances indicating that their stay at that place or in that area is not merely temporary. An unbroken stay of not less than six months’ duration shall be invariably and from the beginning of such stay regarded as an habitual abode in the territory of application of this Code; brief interruptions shall be excepted. The second sentence shall not apply where the stay is undertaken exclusively for visiting, recuperation, curative or similar private purposes and does not last more than one year.

Also read the further clarifications about §8 AO and §9 AO contained in the AEAO vor §§ 8,9,  AEAO zu §8 AO and AEAO zu §9 AO.

 

59 minutes ago, beboy said:

What would you consider a safe period for selling my crypto (after the one-year long-term holding has passed)? Six months and one day? A full fiscal year (selling in 2019)? 

 

"1 year + 1 day" after the date you bought them, i.e. after the date they had actually entered your possession, not just after the date you gave the purchase order.

 

59 minutes ago, beboy said:

2. I don’t find exact information on this (https://europa.eu/youreurope/citizens/residence/residence-rights/index_en.htm), but does studying in Germany (and exiting my home country) qualify me as a tax resident? I am self-employed at this moment but I wouldn’t mind signing up for a German university study. I have enough cash funds to prove that I can support myself. I could sell my crypto in the years of studying, but I cannot seem to find if studying does make me a tax resident? 

 

Coming here, moving into a flat, registering your residence and then living here is enough - getting unlimited tax liability (= unbeschränkte Steuerpflicht = unlimited tax residency) in Germany is easy, so easy in fact, that usually people ask what to do in order to avoid it ;)

For example, Boris Becker was slapped with unlimited tax liability in Germany just because he regularly visited a flat in Munich that his parents had rented: https://www.focus.de/finanzen/steuern/steueraffaere-becker-spiel-satz-und-sieg_aid_247572.html

 

I think your problem is rather finding out from a Belgian tax adviser what you need to do so that Belgium doesn't claim that you have unlimited tax liability in Belgium (they may also have rules about you becoming tax resident just by visiting your parents)...

 

59 minutes ago, beboy said:

3. What is considered a safe period for returning to my home country, starting from the first day of official relocation? Two years, three years? I find this whole situation (emotionally) difficult, but the tax burden in my home country is, compared to the amount of risk I’m taking (and the German system), absurdly high. (I’m taking into account the real chance of staying in Germany long-term.)

 

Again, you would have to ask a Belgian tax adviser that.

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Thank you! That clears up the German part of the story. I already sat down with tax advisers and your intuition is right, although I have to go back to particularly ask about exiting the country and the legal/tax implications. Afaik, no exit tax is due for natural persons.

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First, many thanks to you PandaMunich for invaluable help in this thread!

 

I read the whole topic and just want to make clear if i get it right. The situation is as follows:

I live in Germany and work here. Last year I got some ethers and some iotas sent from my friend's exchange account to the wallets under my control, but total worth under 20k. <-- It's a tax-free gift, and must not be declared.
I keep the coins offline since then, meaning that I can move them tax-free somewhere around May 2018. <-- This is the fact I learned here.
Now that the total is worth like many years of work I would like to spend the coins against euros some day in a second half of 2018. Given that everything I own is only 2 wallets with eth and iota inbound transfers from around May 2017 I just wonder if it goes as smooth as you describe... <-- Is there anything I can do to improve legitimacy of the source if the tax authorities are after me?

Maybe it was better idea to declare this gift even if it was less than 20k back then to have some sort of trace? But 3 months have passed long time ago.

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1 hour ago, aguy said:

Maybe it was better idea to declare this gift even if it was less than 20k back then to have some sort of trace? But 3 months have passed long time ago.

 

Well, if you want to, you can declare the gift even now, since in the Schenkunsteuererklärung, you fill in the date you received the gift in line 2.

 

All forms for the Schenkungsteuererklärung: http://www.finanzamt.bayern.de/Informationen/Formulare/Weitere_Themen_A_bis_Z/Erbschaft-_und_Schenkungsteuer/Ab_2009/default.php?f=LfSt&c=n&d=x&t=x#Schenkungsteuer

 

How to fill in the Schenkungsteuererklärung:

line 2: date you got the gift,  in your case you would fill in that date in May 2017.

lines 4 to 8: Zuwender: person giving the gift 

lines 9 to 13: Erwerber: person who got the gift, i.e. you

line 15: how youb are related to the person who made you the gift. If it was just a friend, write: keines

line 17: mark: Erwerber

line 20: if you haven't received any other gifts from that person within the last 10 years, mark: nein

Mark in line 84: ja, and fill in the amount in € that cryptocurrency was worth on the date you got the gift, i.e. on that date in  May 2017.

Also write in line 102 exactly what you were gifted, i.e. how much of each cryptocurrency:

  • in Zeile 84 angegebene Fremdwährung ist Kypto-Währung (ähnlich Bitcoin): ??? Ethereum und ??? IOTA

Print it, write the date in line 30 and sign it.

Don't forget to also attach proof of this gift and of what the cryptocurrencies' values were on the date of the gift to the Schenkungststeuererklärung.

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Thank you for detailed guide. I put the original date in line 2, but sign it with today's date and Finanzamt receive it today anyway. No questions asked if I send it with such delay?

 

Does the guide apply if the Schenker lives outside of Germany?

 

If I got those gifts in parts like 20.05 some eth, then on 10.06 some iotas and then on 20.06 some eth, I have to put it on separate formular, right?

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5 hours ago, aguy said:

Thank you for detailed guide. I put the original date in line 2, but sign it with today's date and Finanzamt receive it today anyway. No questions asked if I send it with such delay?

 

No, don't worry.

They would only care if you had owed gift tax because of these gifts.

 

5 hours ago, aguy said:

Does the guide apply if the Schenker lives outside of Germany?

 

Yes, it applies if giver and/or recipient live in Germany.

 

5 hours ago, aguy said:

If I got those gifts in parts like 20.05 some eth, then on 10.06 some iotas and then on 20.06 some eth, I have to put it on separate formular, right?

 

If you want to do like that they won't mind.

But normally you would declare the sum of them in line 84 in one Schenkungsteuererklärung, and mention the different gifting dates in the section line 102 to line 107.

 

If you hand in the Schenkungsteuererklärung personally at your local Finanzamt, do a second original of everything, and let them stamp their entry stamp on the ones you keep (if you look on the first page of the Schenkungsteuererklärung, you will see in the top right corner a green field called "Eingangsstempel", that is where the Finanzamt will put its entry stamp), and also an entry stamp on all your copies of all the other documents (like exchange rate print out on date of gift, and so on).

This is your proof of what exactly you submitted.

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On 12/22/2017, 7:27:37, PandaMunich said:
On 12/22/2017, 8:50:29, Robertcron said:

Bonus question:

How to report, if I invested together with friends in ICO. Sending Ethereum to his wallet. He currently holds this investment. After he will sell coins, he will send profit back.

This is not acceptable?

What if he will sends tokens, we bought and I will sell them? Could i report than this transaction as crypto-crypto and then crypto-crypto?

 

Keep your money in your own accounts, any profit generated on a account of yours has to be declared by you, in your income tax return.

Any profit generated on your friend's account is his to declare.

 

As things are you made a gift of these Ethereums to your friend (which will mean gift tax if they were worth more than 20,000€!).

He then makes a profit (you also "gifted" him your buying price, so his profit will have to be calculated based on your buying price).

That he gives you part of that profit afterwards is irrelevant for income tax purposes, it's seen as a gift, which will entail additional gift tax if that amount is over 20,000€: https://www.steuertipps.de/steuererklaerung-finanzamt/themen/freibetraege-bei-der-erbschaftssteuer-und-schenkungssteuer

 

On 2/1/2018, 7:36:54, PandaMunich said:

Mark in line 84: ja, and fill in the amount in € that cryptocurrency was worth on the date you got the gift, i.e. on that date in  May 2017.

 

I would like to make one more thing clear. In my previous posts I have based my predictions on the above information, that the person giving a gift effectively gifts his/her buying price, which could be very different from the market price on the gift's date. Let's analyze one extreme case: I have ethers from the presale in 2014, ie. cost about 0,3€/ETH. Now I give some of them as a gift in December 2017, market price 600€/ETH <-- is the gift worth the market price as of 2017 or the original presale price from 2014?

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You have to differentiate:

  • for the income tax return, you also get "gifted" the initial date of purchase and the initial purchase price of the person who gifted you the cryptocurrency.
  • for the gift tax return (which is a totally different tax!), gifts are always valued at their market value at the moment you received/gave the gift

35 minutes ago, aguy said:

Let's analyze one extreme case: I have ethers from the presale in 2014, ie. cost about 0,3€/ETH. Now I give some of them as a gift in December 2017, market price 600€/ETH <-- is the gift worth the market price as of 2017 or the original presale price from 2014?

 

Their value in the gift tax return is 600€/ETH, i.e. you and the person you gave them to are jointly responsible for paying gift tax on that high value, should the total value of the gift, i.e. number_of_ETH * 600€/ETH, be higher than 20,000€.

 

If the person you gave them to then sells them, and that person lives in Germany, that is a case for an income tax return, and since you also "gifted" him your old 2004 purchase date, these ETH have been held for more than 1 year and the profit (selling_price - number_of_ETH * 0.3€/ETH) is therefore free of income tax for him.

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I have a bit of a dilemma now. Although I'm less than 2 months away from my 1 year tax-free holding period, given the market situation, this is the first time I'm considering to sell my crypto to fiat.

 

Up until this point in time though, I was under the false impression that I would only have to pay 25% tax on my crypto gains but upon reading the pages of this topic closely I actually realized that my crypto gains will be added to my salary income and the entire amount will be taxed as income tax, amounting probably to more than 25%.

 

So now, as a couple:

-with my tax bracket being 3 and

-with an annual salary of 47000 Euro

-I get a netto annual salary of 32565 Euro (~4741 taxes + 9693 social security contributions)

 

Let's say I add 25000 Euro worth of crypto gains to this.

-that would make my annual salary become 72000 Euro

-with a netto annual salary of 47366 Euro (~11640 taxes + 12993 social security contributions)

 

If my calculations are correct, this means that for 25000 Euro crypto gains, I'd have to pay about 10000 Euro taxes (tax bracket 3). Is that roughly correct? Would they allow me to still keep everything under tax bracket 3 or I risk having to pay even more?

Thank you.

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Assuming your wife has no income at all (if she does have income, you would have to tell us how much it is), this is your calculation.

 

Other assumptions:

  • your Krankenkasse has a Zusatzbeitrag of 1.0%
  • you are over 23 and have no children

Enter 47000 into Parmentier wage tax calculator (change tax class to III): http://www.parmentier.de/steuer/index.php?site=tax-wage

--> 38,340€ taxable income from salary (which will be taxed with 4,741.17€ income tax + Soli, this would have already been retained by your employer)

+ 25,000€ profit from selling crpytocurrency

________________

63,340€ total taxable income

--> enter 63340 into the Parmentier income tax calculator: http://www.parmentier.de/steuer/index.php?site=tax-income

 

--> 12,389.91€ total tax (= income tax + Soli) from column "for Couples", i.e. since you're married

- 4,741.17€ already pre-paid in tax through your monthly Lohnsteuer+Soli deductions 

________________

= 7,648.74€ that you would owe in additional income tax + Soli because of the 25,000€ crpytocurrency profit.

 

But again: the above calculation assumes that your wife has no income at all, not even Elterngeld.

If she does have income of her own, the tax on the cryptocurrency profit will go up.

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My wife has a salary of 22000 per year. I actually have 50000 in 2018, sorry for that. We are over 23 and don't have any children. Krankenkasse  Zusatzbeitrag should be 0,9 % for 2018 (TK).

I never took any gains from crypto so far, we are in need of money, and I'm trying to put in balance whether or not I should sell to fiat now or wait two more months for the tax free benefit. However, being a bit clueless about the amount of taxes I'd pay if I sold now, everything's a bit trickier. On one hand, the value of what I have in crypto now (about 25k) could collapse well bellow what I'd get now after paying the taxes. On the other hand it might not, but I can't predict crypto so I'm considering at least taking some profits.

 

If I do end up selling now, I'd like to have an idea of how much to set aside for the tax return next year. Can this amount be affected by us changing the tax classes to IV - IV? You also mentioned at the and "additional income tax + Soli". Can the Soli be a considerable amount or a percentage that can be estimated?

Thanks again and also, if you don't mind me asking, are you perhaps a reddit user as well?

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Enter 50000 into Parmentier wage tax calculator (change tax class to III): http://www.parmentier.de/steuer/index.php?site=tax-wage

--> 40,902€ husband's taxable income from salary (which will be taxed with 5,458.57€ (= income tax + Soli), this would have already been retained by your employer)

 

Enter 22000 into Parmentier wage tax calculator (change tax class to V): http://www.parmentier.de/steuer/index.php?site=tax-wage

--> 17,417€ wife's taxable income from salary (which will be taxed with 4,632.50€ (= income tax + Soli), this would have already been retained by her employer)

 

40,902€ husband's taxable income

17,417€ wife's taxable income

+ 25,000€ profit from selling crpytocurrency

________________

83,319€ total taxable income

--> enter 83319 into the Parmentier income tax calculator: http://www.parmentier.de/steuer/index.php?site=tax-income

 

--> 19,544.93€ total tax (= income tax + Soli) from column "for Couples", i.e. since you're married

- 5,458.57€ already pre-paid in tax through your monthly Lohnsteuer+Soli deductions 

- 4,632.50€ already pre-paid in tax through your wife's monthly Lohnsteuer+Soli deductions 

________________

= 9,453.86€ that you would owe in additional (income tax + Soli) because of the 25,000€ crpytocurrency profit.

 

 

11 minutes ago, AlexBlomkvist said:

Can the Soli be a considerable amount or a percentage that can be estimated?

 

The Soli is already included in the above calculations.

 

11 minutes ago, AlexBlomkvist said:

are you perhaps a reddit user as well?

 

No.

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Thank you to PandaMunich and others for sharing your knowledge.

 
I have a potentially large one-off windfall from crypto and need to decide if it is worth changing residency for a period to take advantage of more favorable taxation. This thread has been very informative. I would like to ask a few related questions.


I have read the comment about taxable ‘events’ but which event counts as the date of the taxable transaction? Is it the date the crypto sell is executed on the exchange and a fiat balance is shown on the online account, the date the exchange transfers the fiat into the individuals bank account, or the date the amount is credited on the bank account? Given the history of issues with various exchanges until now I only treated a gain as real on the day I have the money in the bank.


I understand from this thread that if you have held the crypto for more than 1 year any gains are tax exempt and it is not necessary to declare this income to the Finanzamt. Can you please confirm, is it necessary to still tell your tax accountant of the capital gain (in some tax jurisdictions even non-taxable income must be entered on the tax return as attracting 0% rate tax). So is it only necessary to provide details of taxable income and no need to declare tax-exempt crypto gains to the accountant or anyone else?

 
Assuming all tax affairs are in order, do the tax authorities automatically share tax return and income data with your prior country of tax residence and forward information to any future country of tax residence if you move again within the EU? My interest here is because like others on this thread I would face a large capital gain tax in my current country of residence and as I would still have some income from my country of residence, I would still have to file a tax return there too even if not resident. The double taxation treaty in my current country has the caveat that it will be subject to the countries own interpretation so I would not want to find my current country of residence making a claim on capital gains which were tax free during my period of residence in Germany when I return. Any comments or advice on this aspect would be welcomed.


In an earlier post it was suggesting that renting an apartment and registering for tax at that address is all that is required to become resident for tax. As at least 6 months between January-December must be resident for tax, does that mean renting an apartment for even 7 or 8 months during the year would meet the criteria? Is it necessary to record or prove time actually spent in the country, and would it matter if time during the rental period was spent outside the country for visits to family or holidays?

 

Does it matter if you still have ties with previous countries of tax residence, e.g. still own a home or other property there, or have family and visit there? 

 

If the rental tenancy is ended in less than 1 year is it necessary to de-register for tax as soon as you end the rental tenancy agreement, or if you are not certain on your future plans to stay longer can you wait, and if you then decide not to stay, to formally de-register for tax at the start of the next tax year?

 

Where is the best place to find a reputable English-speaking accountant to handle tax and registration for foreigners?

 

A non-tax question, but practically for rental properties are utility payments (gas, water, electricity) or local property taxes, paid by the tenants and if so, do the tenants need to register with the local utility companies. How does this process work if you do not speak German yet?

 

Costs of residency which I can think of are property rental, property agent fees, utilities, actual taxes due, accounting fees, normal living expenses, and travel to visit family. For a longer-term stay I would add language tuition fees. Are there any other significant costs that would apply when taking up residency with a property rental as described?


 

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1 hour ago, wilt said:

I have read the comment about taxable ‘events’ but which event counts as the date of the taxable transaction? Is it the date the crypto sell is executed on the exchange and a fiat balance is shown on the online account, the date the exchange transfers the fiat into the individuals bank account, or the date the amount is credited on the bank account? Given the history of issues with various exchanges until now I only treated a gain as real on the day I have the money in the bank.

 

The date the balance is shown on the online account.

 

1 hour ago, wilt said:

is it necessary to still tell your tax accountant of the capital gain (in some tax jurisdictions even non-taxable income must be entered on the tax return as attracting 0% rate tax).  So is it only necessary to provide details of taxable income and no need to declare tax-exempt crypto gains to the accountant or anyone else?

 

You should them about it - you should tell your Steuerberater everything, otherwise they can't give you a complete analysis! 

But it will not be entered into your tax return forms.

 

1 hour ago, wilt said:

Assuming all tax affairs are in order, do the tax authorities automatically share tax return and income data with your prior country of tax residence and forward information to any future country of tax residence if you move again within the EU?

 

No.

Banks share information on capital gains with the country that an account holder is registered in, i.e. if you give your bank a German tax identification, they will forward the information to Germany: 

 

1 hour ago, wilt said:

In an earlier post it was suggesting that renting an apartment and registering for tax at that address is all that is required to become resident for tax. As at least 6 months between January-December must be resident for tax, does that mean renting an apartment for even 7 or 8 months during the year would meet the criteria? Is it necessary to record or prove time actually spent in the country, and would it matter if time during the rental period was spent outside the country for visits to family or holidays? 

 

Does it matter if you still have ties with previous countries of tax residence, e.g. still own a home or other property there, or have family and visit there?

 

It means actually moving here with the intention to stay and living here, and also giving up your previous home in your home country, e.g. by renting it to somebody else so that it is no longer available to you.

If you don't give up your old home in the UK, the tie-breaker rule in article 4 of the double taxation agreement between Germany and the UK would assign residency and therefore the taxation rights to the country you have the closer personal ties with, and since you mentioned wanting to visit family back home, that would then be the UK.

 

1 hour ago, wilt said:

If the rental tenancy is ended in less than 1 year is it necessary to de-register for tax as soon as you end the rental tenancy agreement, or if you are not certain on your future plans to stay longer can you wait, and if you then decide not to stay, to formally de-register for tax at the start of the next tax year?

 

There is no explicit de-registration for tax - when you de-register your address in Germany, you're automatically no longer tax-resident.

 

1 hour ago, wilt said:

Where is the best place to find a reputable English-speaking accountant to handle tax

 

I suggest that you choose a Steuerberater with experience in international cases, a slew of them advertise on Toytown, you can find their threads and reviews written by their clients pinned at the top of the Finance forum: https://www.toytowngermany.com/forum/forum/181-finance/

 

1 hour ago, wilt said:

registration for foreigners?

 

You rent a flat, get your landlord to fill in and sign a Wohnungsgeberbestätigung and go to the Bürgerbüro and register your address.

That's it.

 

A word of warning: most Airbnb rentals are illegal in Germany, i.e. you won't be allowed to register at such an address since the landlord won't give you a Wohnungsgeberbestätigung for it:

 

1 hour ago, wilt said:

A non-tax question, but practically for rental properties are utility payments (gas, water, electricity) or local property taxes, paid by the tenants and if so, do the tenants need to register with the local utility companies. How does this process work if you do not speak German yet?

 

Either use GoogleTranslate to translate the forms you need to fill in, or hire somebody to help you, e.g. Kathleen at Red Tape Translation in Berlin: https://www.redtapetranslation.com/

See here for reviews on Red Tape Translation, right here on Toytown:

 

1 hour ago, wilt said:

Costs of residency which I can think of are property rental, property agent fees, utilities, actual taxes due, accounting fees, normal living expenses, and travel to visit family. For a longer-term stay I would add language tuition fees. Are there any other significant costs that would apply when taking up residency with a property rental as described?

 

Kaution = deposit, which is 3 cold rents, to pay for any damage to the flat

Kitchen, lamps: If you rent an unfurnished flat, you should know that it comes without a kitchen and without lighting fixtures (there will only be some cables sticking out of the ceiling).

TV licence: costs 17.50€ per month and has to be paid, no matter whether you have a TV or not: https://www.rundfunkbeitrag.de/welcome/englisch/index_ger.html

Internet: around 30€ a month

 

Health insurance: German law obliges you to have valid health insurance (if you have taxable German income it is lowered by what you paid by health insurance).

This can either be:

  • private health insurance, the contribution to which depends on your age and health condition, for quotes contact our Toytown-resident insurance brokers (they're good guys!) john g. (= John Gunn) or Starshollow (= Patrick Ott).
  • public health insurance (since you're coming directly out of the NHS, you are allowed to join it), e.g. Techniker Krankenkasse, which charges around 18.3% of your total worldwide monthly income every month, at least 180€ a month. Here's a health insurance contribution calculator, just enter your monthly worldwide income in €: https://www.tk.de/service/app/2004108/beitragsrechner/selbststaendigeRechner.app
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PandaMunich,

 

Thank you for a fantastic answer. Everything clear and very useful. 

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