Resident for tax purposes / Tax Resident

4 posts in this topic

Hi,

 

I've taken a look at other suggested threads, but couldn't find one that covered this specific question... 

 

I believe its standard practice now for financial institutions in the UK to ask if you are a "resident for tax purposes" in any other countries.

 

I'm aware that you are considered a resident for tax purposes / tax resident if you have been present in Germany for more than six months in any one calendar year, or for a consecutive period of six months over a year-end. If this statement does not apply, what other factors (if any) can make you a tax resident?

 

Can owning a holiday home in Germany (that you don't rent out and thus don't make any income from) that you visit a few times a year (say for a couple of weeks or a month each time) make you a resident for tax purposes / tax resident?

 

Can claiming a German pension make you a resident for tax purposes / tax resident?

 

Can having a German Bank Account make you a resident for tax purposes / tax resident?

 

Feedback appreciated! 

 

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7 hours ago, lmrtw said:

Can having a German Bank Account make you a resident for tax purposes / tax resident?

 

Not as far as I am aware. We had German bank accounts before we moved here and merely declared where we were (tax) resident at the time.

 

7 hours ago, lmrtw said:

Can owning a holiday home in Germany make you a resident for tax purposes / tax resident?

In our case, no. We owned here before we moved here and/or registered here and the purchase/ownership had no influence on our tax status/residence. 

 

Note: Some locations may invoice a yearly or quarterly holiday home tax or charge for dwellings that are generally empty (no registered resident for a considerable amount of time). In our case we were part-renovating for a few months and were not charged this holiday home tax, then one of us registered as resident - problem solved. Upon becoming resident my partner then became tax resident and the same for me when I registered later.

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Thanks for the response lunaCH, that's really helpful. So ignoring the 6 month rule,  it sounds like you may only be a resident for tax purposes / tax resident if perhaps you have earned an income in Germany either maybe through renting your property out or another means.

 

Still not sure about whether claiming a German pension can make you a resident for tax purposes / tax resident?

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9 hours ago, lmrtw said:

Thanks for the response lunaCH, that's really helpful. 

Still not sure about whether claiming a German pension can make you a resident for tax purposes / tax resident? 

 

From first google result:

 

The question of whether a pension must be taxed in Germany depends on what kind of pension it is and in which country you are resident. The size of the pension is not relevant in terms of determining whether it is liable for tax or not.

If you receive income from Germany you may be liable to pay German income tax on this German income. This applies even if you do not have your place of residence in Germany or do not spend 183 days or more a year in the country. In this case, you have a limited tax liability with respect your German income only (cf. section 1 subsection (4) of the Income Tax Act (Einkommensteuergesetz)).

The rules about the taxation of other income (pensions) changed fundamentally with the introduction of the Retirement Income Act (Alterseinkünftegesetz) which came into force in 2005. As part of this an amendment was made to limited tax liability in respect of other income under section 49 subsection (1) number 7 and number 10 of the Income Tax Act (Einkommensteuergesetz).

 

You need to look further into this.

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