German Tax Residency
You are generally considered tax resident in Germany if you meet either of these conditions:
- You have a permanent home (Wohnsitz) in Germany
- You have your habitual abode (gewohnlicher Aufenthalt) in Germany
You only need to meet one of these tests.
1) Permanent home (Wohnsitz)
You are considered to have a German tax residence if you maintain a dwelling available for use in Germany.
This can include:
- Owning an apartment or house
- Renting accommodation
- Having long-term access to a property (even if you are not there full time)
The key factor is that the home is available to you at any time, not how many days you actually stay there.
Even occasional use can be enough if the property is maintained for living purposes.
2) Habitual abode (gewohnlicher Aufenthalt)
If you physically stay in Germany for more than 183 days within a continuous period (not necessarily a calendar year), you are generally considered to have your habitual abode there.
Short temporary absences (like holidays abroad) usually do not interrupt this period.
This test focuses on where you are actually living in practice.
What happens if you are tax resident in Germany?
As a German tax resident, you are typically taxed on your worldwide income, including:
- Employment or freelance income
- Foreign rental income
- Investment income from abroad
- Foreign pensions
You may also have reporting obligations for foreign bank accounts and assets.
If you are NOT tax resident in Germany
If you are considered non-resident, Germany generally taxes you only on German-source income, such as:
- Income from work performed in Germany
- Rental income from German property
- Certain German investment income
Double tax treaties
Germany has an extensive network of tax treaties.
If you are considered resident in two countries under domestic rules, a treaty may apply tie-breaker tests based on:
- Permanent home
- Centre of vital interests
- Habitual abode
- Nationality
These rules determine which country has primary taxing rights.
Why this matters
German tax residency can arise even if you spend limited time in Germany — simply keeping a home available can be enough.
Many people unintentionally trigger residency by keeping an apartment "just in case" while living abroad.
What Amanda does
Amanda helps you:
- Track time spent in Germany
- Identify when you may have a dwelling available that could trigger residency
- Highlight situations where German tax residency risk may arise
Amanda does not make legal determinations but helps you understand when German residency exposure could exist.
Official sources
For authoritative guidance, consult:
- The German Income Tax Act (Einkommensteuergesetz), Sections 8 and 9
- Guidance from the German Federal Central Tax Office (Bundeszentralamt fur Steuern)
These are the legal bases used by German tax authorities.