You can find general information on income tax rates here, in relation to Germany. This guide also covers the income tax base for residents and non-residents, allowable tax credits and deductions, the special expatriate tax regime, capital income tax rates and information on double-taxation treaties.
Income Tax Base For Residents and Non-Residents of Germany
- Residents of Germany
- are subject to personal income tax on their total income, from all sources worldwide.
- Non-residents of Germany
- are subject to personal income tax on German sourced income only.
- Their main home or center of economic interests is in Belgium.
- They are registered within the civil register.
A surcharge must be added, of 5.5% of the amount of income tax, if it concerns a solidarity contribution. Within Bavaria and Baden-Württemberg there is also a 9% Church Tax.
Allowable Deductions and Tax Credits
Insurance bonuses, education and training expenses, retirement expenses, alimony, donations and expenses related to disability are all deductible.
Special Expatriate Tax Regime
Germany has signed avoidance of double taxation agreements with many countries in the world. For more information refer to the Ministry of Finance (German only).
Capital Tax Rate
- No special capital gains tax.
Double Taxation Treaties
- Countries With Whom a Double Taxation Treaty Have Been Signed
- Centre for German Legal Information (CGerLI), Access the list of Double Taxation Treaties signed by Germany
- Withholding Taxes Dividends:
- Dividends: 25%, Interest: 0%, Royalties: 15%/30%
- Bilateral Agreement
- The United Kingdom and Belgium are bound by a double taxation treaty.
Tax returns are due by 31st May the following year.
Figures Based on Sources
- Services Publics Fédéral des Finances (FISCUS), Tax Administration.
- Belgium Ministry of Finance
- The tax department, Website of the tax department
- The Federal Finance Bureau, Website of the Federal Finance Bureau
- Bundesministerium der Finanzen, Website of the Federal Ministry of Finance.
Other Domestic Resources