Germany Tax Guide
This page includes citations to the sources used for this entry. Always verify with official sources before making decisions.
Personal Income Tax
Tax Residency
Income Tax Rates
Foreign Income Treatment
Investment Income
26.375% flat on securities (plus solidarity surcharge); real estate taxed at progressive rates after 10-year holding period
Wealth & Inheritance
Practical Notes
High tax burden. Solidarity surcharge applies. Church tax may apply. Social security contributions significant.
Business & Corporate Tax
Corporate Income Tax
Withholding Taxes
VAT / GST
Compliance & Substance
Notable Regimes
- Trade tax on business profits
- R&D incentives
Data Sources
Last updated: January 2025. Always verify with official sources before making decisions.
FAQ
What is the personal income tax rate in Germany?
Germany has a top personal income tax rate of 45%. The tax structure is: Progressive 0-45% plus solidarity surcharge 5.5% on tax. See the detailed breakdown above and verify with official sources.
Do I need to pay tax on foreign income in Germany?
Germany uses a worldwide system for foreign income. German residents taxed on worldwide income; foreign tax credits available
What are the residency requirements for Germany?
Tax residency in Germany generally requires 183 days of physical presence. 183 days or habitual abode or center of vital interests. Always verify current rules with official sources.
Is there a wealth tax in Germany?
No, Germany does not have a wealth tax. No federal wealth tax; some states have property taxes
What is the corporate tax rate in Germany?
The corporate tax rate in Germany is 30.06%. 15% federal + 5.5% solidarity surcharge + municipal trade tax (7%-17%)