Germany Tax Guide
Figures on this page were last verified against the cited sources in June 2026. Always check official sources before making a relocation or incorporation decision.
Best for
- Zero capital gains
No CGT on investment, property, or crypto disposals (subject to "investor" classification).
- No wealth tax
No annual tax on net worth or assets.
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
OECD Pillar Two (15% global minimum tax)
Mindestbesteuerungsgesetz implements EU Directive. QDMTT, IIR, and UTPR all live.
See full implementation trackerTax Treaty Network
US-Germany treaty includes pension article (Article 18) and detailed treaty-benefits limitation. Totalization in force since 1979.
See full treaty matrixData Sources
Last verified: June 2026. Always check official sources before making a decision.
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%)
US citizen moving to Germany? Read this first.
Germany's top personal rate of 45% means the Foreign Tax Credit (FTC) usually wins over FEIE for US citizens.
- •FTC (Form 1116) credits Germany tax against US tax dollar-for-dollar. Because Germany tax exceeds US tax on the same income, you typically owe zero US tax and accumulate carryforward credits (10-year carry).
- •Self-employment tax is normally exempted via the US-Germany totalization agreement — pay into one social security system, exempt from the other.
- •For earned income near the FEIE cap (~$130k), FEIE is sometimes simpler administratively. Above the cap, FTC strategy almost always wins given Germany's rates.
- •Germany residency days threshold: 183. Treaty tie-breaker rules (where applicable) help with double-tax avoidance.
Need someone to actually plan Germany for you?
TaxAtlas covers the rates and rules. For the personal side — exit planning, residency strategy, business structure, or filings — request a response and we'll point you to relevant research or a specialist who handles Germany cases.
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