Importing capitals to Germany

11 posts in this topic

Hi All,

 

I am soon going to relocate to Dresden and I am thinking to sell an apartment I own in Italy to finally settle down there.

I currently am a German fiscal resident  and I have purchased my property in Italy more than 10 years ago.

 

Now the question is: what happens in the eyes of the Finanzamt if I move let's say 200000 Eur from my own bank account in Italy to my bank account in Germany?

My take is that they should not be taxed. I have read the Italian-German agreement against double-taxation and there it is clearly stated that income from real estate is taxed in the country where the real estate is.

Plus this is actually not income, this is capital and for the fact that the property was purchased more than ten years ago, as far as I know there should not  be a capital-gain tax (which will be anyway microscopic, prices plummeted in Italy since the 2008 crisis :(. Depending on the negotiation I may even end up selling under my initial purchase value). Are there other taxes to consider on top of the capital gains?

Your comments are welcome indeed.

 

Assuming that the capital should not be taxed (I hope I am right).

How do I actually import the money here in Germany? I know there is a limit of 12500 EUR beyond which transactions must be somewhat explained. So when I do a transaction of say 200000 EUR from my italian bank account to my german bank account, do I need to inform the Bundesbank? Where? How?

Regarding taxes, is there a way I can flag/explain the transaction so that the Finanzamt will know what that is?

 

(this leads to another question that I will post in a minute in a following post)

 

Thank you!!

 

 

 

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2 hours ago, Tim34 said:

I know there is a limit of 12500 EUR beyond which transactions must be somewhat explained. So when I do a transaction of say 200000 EUR from my italian bank account to my german bank account, do I need to inform the Bundesbank? Where? How?

 

AFAIR you can either proactively report it directly and inform your German bank immediately that you have done so or your German will be obligated do it anyway.

 

They may, and probably will, add a small service charge to your account for doing that though it may still be a lot easier for you to let them take care of it.

 

You can try your luck at finding the relevant info re international transfers by private individuals on their website.  FAQ and notices | Deutsche Bundesbank

 

I think their site's easier to navigate for whoever is a business trader, freight forwarder or in the finance or banking business, tbh.

 

 

Your questions wrt notifying the Finanzamt hs been answered in detail by @PandaMunich several times on the main thread on 'Filing taxes...' in the Finance forum. You may find links to those answers in the relevant section of the excellent  ELSTER TT Wiki by PandaMunich

 

2B

 

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I had some reporting questions (quite different from yours unfortunately) in 2016 so I emailed the Bundesbank using their contact form, here:  https://www.bundesbank.de/en/homepage/contact

 

eta:  yes I see that page says it's for press inquiries, but I'm almost certain that's the form I used.  To be completely safe the direct email address is/was info@bundesbank.de

 

They replied very quickly with a detailed explanation, in English no less.  So why not contact them directly to see what they say about your particular situation? 

 

can't hurt.

 

eta:  my question was overall different but they did confirm that I could avoid reporting at all if I kept each transfer below the threshold.  Yes even if I did multiples which added up to a sizeable amount.  I'd still contact them to confirm this is true for your case, if you want to consider that route.

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@Tim34

 

Please do not cross post (open duplicate topic threads) on Toytown!!

 

It is unneccessary and very frustrating to those TTers who may care to help.

 

When people who seek help cross post it puts those who are willing to help off responding to them in future.

 

TTers who may have posted in one or the other thread will soon notice that their efforts were wasted by the cross poster.

 

Importing non taxable income to Germany - Finance - Toytown Germany

 

Thank you for your consideration.

 

2B

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13 hours ago, lisa13 said:

they did confirm that I could avoid reporting at all if I kept each transfer below the threshold.

 

May I ask what the threshold was at that time?

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it was in 2016 and the threshold was 12500 EUR then too.  Transferwise wouldn't do transfers for me in excess of 10k USD so I didn't have any choice on that part.

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18 hours ago, lisa13 said:

I had some reporting questions (quite different from yours unfortunately) in 2016 so I emailed the Bundesbank using their contact form, here:  https://www.bundesbank.de/en/homepage/contact

 

However, the Money Laundering Act has been tightened several times since 2017 - the attempt to disguise a higher sum by denomination is likely to make the alarm bells ring today. 

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yes indeed, which is why I mentioned my case was in 2016 - I was also shocked that even at the time this would not raise flags. I have no idea what has changed since then, ergo it's always best to just contact the bundesbank with questions before making a transfer.

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I dont have a link to the rules, but I remember from my payment processing past that shaping or structuring (same thing) to avoid reporting limits is illegal is most juristictions.

 

I doubt anyone is going to freak because you transfer 12499 or whatever the limit is currently, but a large number of just under the limit transactions may be noticed and may in the long run be worse than one big one.

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I support finding out what the official opinion is from your German bank. But if you do not need to use all your capital right away, it is also possible to transfer smaller amounts, below the threshold, over a longer time span.

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