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Tax scheme for highly skilled immigrants in Germany

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mamatv

Hello everyone,

Is there any special tax scheme (i.e. lower tax) for highly skilled immigrants (e.g. for a guy who can apply for EU Blue Card, earning say ~80K gross) in Germany?

For instance, the Netherlands has 30% of ruling and Belgium has "expat tax scheme" that can allow expat to pay less tax (and have more net income).

Many thanks

beppi

No, there is no such scheme in Germany.
You'd be taxed the same as any normal working local.

TominStuttgart

Nope, they get the advantage of preferential treatment for working visas. Why should they not pay their share of taxes? To attract skilled workers then companies need to offer high enough wages. That the government would give a tax break is a very bad economic idea.

Guestposter65

Why would you think you would pay less taxes at your income?  Don't you know that only the wealthy pay less taxes Worldwide?

Luis_garrido

Hallo Leute!

Any tax advisor services to recommend to?

Vielen Dank

beppi

Luis_garrido wrote:

Any tax advisor services to recommend to?


It depends on where you are (which city). You shopuld look fo a tax consultant ("Steuerberater") near you!

TominStuttgart

see below

TominStuttgart

Luis_garrido wrote:

Hallo Leute!

Any tax advisor services to recommend to?

Vielen Dank


This is rather off subject to the original post. This is also a subject well covered by previous threads. Like Beppi mentioned you need to find an advisor where you live. Your profile shows you intend to live in Stuttgart but are still in the US – or has your status changed?

A note to all Americans is that you’ll have to file annually to the US plus report overseas financial holdings in addition to your German taxes. It is imperative you inform yourself of the rules and if you cannot do it yourself to have a US based advisor as it’s doubtful German tax advisors will know the details of doing US taxes other than to inform you of your obligation to do so. I am posting a link to a thread where I have discussed such obligations for Americans and also a link to the IRS publication 54 that covers most of the subject of filing for American persons overseas.

As far as the German requirements, if you are self-employed then you will need an advisor for the beginning. If you are employed and receiving a salary there are also clubs that assist one in filling out the forms. The German term is Lohnsteuerhilfeverein.  For many, this is adequate and much cheaper than having a tax advisor prepare your forms.


https://www.expat.com/forum/viewtopic.php?id=637230https://www.irs.gov/publications/p54

Luis_garrido

Thanks! Have a good one!!

qwert1223

TominStuttgart wrote:

Nope, they get the advantage of preferential treatment for working visas. Why should they not pay their share of taxes? To attract skilled workers then companies need to offer high enough wages. That the government would give a tax break is a very bad economic idea.


Because expats have higher expenses moving to a new country. Not having access to skilled workers is also a very bad economic idea.

beppi

qwert1223 wrote:
TominStuttgart wrote:

Nope, they get the advantage of preferential treatment for working visas. Why should they not pay their share of taxes? To attract skilled workers then companies need to offer high enough wages. That the government would give a tax break is a very bad economic idea.


Because expats have higher expenses moving to a new country. Not having access to skilled workers is also a very bad economic idea.


All expenses related to moving - IF the move is necessary for the job and the employer did not already pay for it - can be offset from your taxable income. Ask your tax consultant for the details!

Cynic

A little bit off-topic, but not many countries offer tax incentive schemes for skilled migrants; when I moved to the UK; all my expenses (fees for selling old house, buying and decorating new one, moving household goods, family travel, new school uniforms and company car) were all paid for by my new employer via a lump sum; if they want you bad enough, they will pay - in the UK it's offset against Capital Gains tax, so costs them very little in the scheme of things.

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