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(This message was added in version 6.7.0.) in /home/livewo9/public_html/wp-includes/functions.php on line 6114[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|desktop” _builder_version=”4.3.4″ custom_padding=”|10vw||10vw|false|true” custom_padding_tablet=”|5vw||5vw|false|true” custom_padding_phone=”|1vw||1vw|false|true” z_index_tablet=”500″][et_pb_row _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”4.2.2″][et_pb_code _builder_version=”4.5.7″ text_orientation=”center”]<\/a> [\/et_pb_code][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding_last_edited=”on|phone” _builder_version=”4.3.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”||||false|true” custom_padding_tablet=”||||false|true” custom_padding_phone=”||||false|true”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”intro” _builder_version=”4.8.2″ hover_enabled=”0″ z_index_tablet=”500″ sticky_enabled=”0″]<\/p>\n Submitting a tax return<\/strong>\u00a0(German term: Steuererkl\u00e4rung)<\/em><\/strong> is not compulsory for regular employees<\/strong> who have no other sources of income other than their job. It is compulsory<\/strong> for the self-employed<\/strong>, or anyone who has income from other sources totalling more than \u20ac801 annually. However, even if you’re not obliged to, it’s quite possibly in your interest to submit a tax return.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.3.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”|0px||0px|false|false”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_image src=”https:\/\/liveworkgermany.com\/wp-content\/uploads\/2019\/05\/german-tax-return-feature.jpg” align=”center” align_tablet=”center” align_phone=”” align_last_edited=”on|desktop” _builder_version=”4.5.7″ width=”55%” width_tablet=”80%” width_phone=”95%” width_last_edited=”on|phone” module_alignment=”center” z_index_tablet=”500″ border_radii=”on|10px|10px|10px|10px”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding_last_edited=”on|phone” _builder_version=”4.3.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”||||false|true” custom_padding_tablet=”||||false|true” custom_padding_phone=”||||false|true”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”intro” _builder_version=”4.8.2″ hover_enabled=”0″ z_index_tablet=”500″ sticky_enabled=”0″]<\/p>\n <\/p>\n Regular employees<\/a> who do not have any income from other sources such as self-employment<\/a>, savings, investments or rental property generally will not be obliged to submit an annual tax return in Germany.<\/p>\n If this describes you, then you’ll simply have taxes deducted from your earnings at the appropriate tax rate. Check out our guide to German payslips to find out more about these deductions.<\/p>\n However, as we will explore, it may very well be in your interests to complete one even if you don’t have to.<\/p>\n Why? Because of the money you could claim back from the Finanzamt<\/em>.<\/p>\n Is it worth the effort though? That is a much more complex topic, so we’ll take a look at the essentials to help you decide whether it’s worth the cost and hassle.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding_last_edited=”on|phone” _builder_version=”3.29.3″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”||||false|true” custom_padding_tablet=”||||false|true” custom_padding_phone=”||||false|true”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”Is it compulsory” _builder_version=”4.8.2″ z_index_tablet=”500″]<\/p>\n As we explained, for most employees you won’t need to submit a return.<\/p>\n For the self-employed, it’s compulsory.<\/p>\n This also includes anyone who earns income from self-employment or freelancing on the side as well as having regular employment.<\/p>\n If you have other significant sources of income that amount to greater than \u20ac801 for singles (\u20ac1,602 for married couples) annually, you will also need to submit a tax return.<\/p>\n The most common forms are capital gains from savings and investments, income from rental property and self-employment as extra side income i.e. coaching, teaching, any paid artistic pursuit, evening or weekend work, or any other business interests.<\/p>\n <\/p>\n Because the Finanzamt\u00a0<\/em>wants to know about any activity you have undertaken where tax is not deductible at source.<\/p>\n Tax is automatically deducted from your payslip by your employer, if you have a regular hourly wage or salaried job.<\/p>\n But any other sources of income are unknown to the revenue collection authorities, and by law you are expected to declare them.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding_last_edited=”on|phone” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”||||false|true” custom_padding_tablet=”||||false|true” custom_padding_phone=”||||false|true”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”Is it worth it?” _builder_version=”4.8.2″ z_index_tablet=”500″]<\/p>\n Below are a few examples where it will make sense to seriously consider submitting a German tax return.<\/p>\n For higher earners paying a high tax rate, or those with more than one of the criteria below applicable, you could receive a tax refund in the thousands!<\/strong><\/p>\n This is based on the likelihood of you being able to claim a rebate large enough to make it worth your time (and money, if you decide to go with external help!)<\/p>\n <\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.5.7″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.5.7″ _module_preset=”default”][et_pb_code _builder_version=”4.5.7″ _module_preset=”default” text_orientation=”center”]<\/a> [\/et_pb_code][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding_last_edited=”on|phone” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”||||false|true” custom_padding_tablet=”||||false|true” custom_padding_phone=”||||false|true”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”Cheapest Solution – SteuerGo” _builder_version=”4.8.2″ z_index_tablet=”500″]<\/p>\n Yes, you can, using third party software.<\/p>\n You may be familiar with the Turbotax App, but it’s not available in Germany.\u00a0As a German altenative, we recommend a simple, very affordable piece of software called SteuerGo<\/a><\/strong>.<\/p>\n NOTE: You can’t submit business taxes using this software.<\/p>\n The official ELSTER portal (see below) is only in German, so you’ll need SteuerGo to interface with it in English<\/a>.<\/p>\n Freelancers and small business should really hire a tax advisor. Taxes in Germany are complex, and running a business isn’t child’s play. Ideally, hire one who speaks English, to explain complicated concepts!<\/p>\n The great thing about SteuerGo is\u00a0you don’t have to pay anything up until the point where you want to submit.\u00a0<\/strong><\/p>\n So, you can try it out and confirm you like the user interface before having to pay.<\/p>\n The clincher though is it only costs\u00a0\u20ac24.95 for each tax return submitted<\/a><\/strong>, so it’s an absolute bargain compared to the other options you have.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding_last_edited=”on|phone” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”||||false|true” custom_padding_tablet=”||||false|true” custom_padding_phone=”||||false|true”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”What are the rules?” _builder_version=”4.8.2″ z_index_tablet=”500″]<\/p>\n If you plan to submit your tax return without using the services of a tax advisor (Steuerberater)<\/em>,\u00a0<\/em>then the deadline is the\u00a031st July of the year following the tax year you are claiming for.<\/p>\n So, for 2020 tax year, you need to submit by 31.07.2021.<\/p>\n This also applies if you use third party apps or software products to help you complete your tax return.<\/p>\n HOWEVER…here comes the good part…<\/p>\n If you have never submitted a tax return since arriving in Germany<\/strong>, and your situation dictates that it is not compulsory for you<\/strong> to submit one, you can claim back up to 4 years of rebates!<\/strong><\/p>\n Also, if you decide to utilise the services of a Steuerberater<\/em>, the Finanzamt<\/em>\u00a0generously gives you an extra 3 months to submit your paperwork. The deadline then is 30th September (as long as you name your tax advisor on the tax return in the applicable section.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding_last_edited=”on|phone” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”||||false|true” custom_padding_tablet=”||||false|true” custom_padding_phone=”||||false|true”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”How does it work?” _builder_version=”4.5.7″ z_index_tablet=”500″]<\/p>\n Whichever way you choose to submit your German taxes, the forms are transmitted electronically through a system called ELSTER.<\/p>\n The easiest way to do this is to submit using a secure certificate on the\u00a0ELSTER website<\/a>.<\/p>\n This is the electronic portal that communicates directly to your local tax authority, or\u00a0Finanzamt<\/em>.<\/p>\n You will receive an acknowledgement confirming that your documents have been submitted successfully.<\/p>\n Since 2019, there is no requirement to send supporting paperwork separately. If the Finanzamt\u00a0<\/em>wants to see further evidence or have follow-up queries, they will write to you separately requesting this.<\/p>\n Some time later – it can vary from a few weeks to several months depending on where you submit and how overloaded your local tax office is – you get your statement (Steuerbescheid)<\/em>.<\/p>\n This will tell you how much you owe or how much your rebate will be.<\/p>\n If you owe taxes, you have 4 weeks to pay your bill.<\/p>\n If you’re due a rebate, this is usually transferred within a few working days of you receiving your Steuerbescheid <\/em>and paid directly into your bank account that you have specified on your tax return.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding_last_edited=”on|phone” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”||||false|true” custom_padding_tablet=”||||false|true” custom_padding_phone=”||||false|true”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”When should you use Steuerberater?” _builder_version=”4.8.2″ z_index_tablet=”500″]<\/p>\n This is obviously based on your comfort level with regard to submitting your own taxes.<\/p>\n Some individuals may feel more comfortable reaching out to a Steuerberater<\/em> for the first time, and then for subsequent years to do it themselves.<\/p>\n However, with that said, it does depend on the complexity of your own tax situation. In these cases specifically, I would highly recommend you consult a tax advisor.<\/p>\n <\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding_last_edited=”on|phone” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”||||false|true” custom_padding_tablet=”||||false|true” custom_padding_phone=”||||false|true”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”What does a Steuerberater cost?” _builder_version=”4.8.2″ z_index_tablet=”500″]<\/p>\n Fees for German tax advisors are based on a regulated set of charges known as the Steuerberatergeb\u00fchrenordnung<\/em> (StBVV)<\/a>.<\/p>\n Don’t ask how these work – I can’t even begin to explain!<\/p>\n Suffice to say, it is based on the amount of taxable income you are declaring.<\/p>\n You are looking at a bill of several hundred euro in most cases.<\/strong><\/p>\n The more you earn, the higher the fee.<\/p>\n Tax advisors in Germany are highly qualified individuals who have gone through years of training and have passed a very tough exam.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding_last_edited=”on|phone” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”||||false|true” custom_padding_tablet=”||||false|true” custom_padding_phone=”||||false|true”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”Is it difficult to do my own taxes” _builder_version=”4.8.2″ z_index_tablet=”500″]<\/p>\n The process in itself is no more or less difficult than completing a tax return in your home country.<\/p>\n Those who are more financially savvy should not feel too phased by it. I didn\u2018t feel too daunted when I completed mine for the first time.\u00a0<\/p>\n I paid a tax advisor first time around, and just asked him lots of questions so as I could then figure it out myself the following year using the previous year as an example. Online tools like a paycheck calculator can also help.<\/p>\n The reason why SteuerGo is a great option<\/a> is because the hardest part will be the language barrier in most cases.<\/p>\n If your tax situation is straightforward i.e. you’re an employee and just want to offset some expenses, then it’s reasonably straightforward to figure it out.<\/p>\n Anything more complex and it’s probably worth getting some external support.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding_last_edited=”on|phone” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”||||false|true” custom_padding_tablet=”||||false|true” custom_padding_phone=”||||false|true”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”Lohnsteuerverein” _builder_version=”4.5.7″ z_index_tablet=”500″]<\/p>\n If you\u2019re not comfortable with submitting a German tax return yourself, then a halfway-house solution is to approach your local Lohnsteuerverein <\/em>rather than the high cost of a Steuerberater<\/em>.<\/p>\n This is a non-profit group made up of volunteers, who are often retired tax advisors and chartered accountants who advise members of the association.<\/p>\n You pay an annual membership fee and this essentially grants you access to the members and their knowledge base for a fixed fee.<\/p>\n Find your local Lohnsteuerverein<\/em><\/a><\/strong><\/p>\n Membership of a Lohnsteuerverein varies but expect to pay between \u20ac200 and \u20ac300 per year.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding_last_edited=”on|phone” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”||||false|true” custom_padding_tablet=”||||false|true” custom_padding_phone=”||||false|true”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”Disclaimer” _builder_version=”4.5.7″ z_index_tablet=”500″]<\/p>\n Disclaimer:<\/strong> Live Work Germany is not qualified to provide tax advice beyond any of the general tips contained in this article. If in doubt, consult a professional tax advisor. They are expensive for a reason.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.5.7″ global_module=”46139″ saved_tabs=”all”][et_pb_column type=”4_4″ _builder_version=”4.3.2″][et_pb_text admin_label=”AFFILIATE LINKS” _builder_version=”4.5.7″ text_font=”|300|||||||” custom_margin=”0px||0px||false|false” custom_padding=”0px||0px||false|false”]<\/p>\n Disclosure: Some of the links contained in this article are affiliate links, meaning we receive a small commission for any sales resulting from these clicks. This has no bearing on the price of the product or service. Thank you for supporting us – we appreciate it!<\/em><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.5.7″ _module_preset=”default” background_color=”#f8f8f8″ width=”80%” width_tablet=”75%” width_phone=”100%” width_last_edited=”on|tablet” module_alignment=”center” custom_margin=”2vw||2vw||false|false” border_radii=”on|15px|15px|15px|15px” border_width_all=”1px” global_module=”47539″ saved_tabs=”all”][et_pb_row _builder_version=”4.5.7″ _module_preset=”default” custom_margin=”|auto|0px|auto|false|false” custom_padding=”1vw||0vw||false|false”][et_pb_column type=”4_4″ _builder_version=”4.5.7″ _module_preset=”default”][et_pb_text _builder_version=”4.5.7″ _module_preset=”default” custom_margin=”0px||0px||false|false” custom_padding=”1vw||1vw||true|false”]<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_3,1_3,1_3″ _builder_version=”4.5.7″ width=”100%” custom_margin=”1vw||2vw||false|false” custom_padding=”0px|50px|0px|50px|false|false”][et_pb_column type=”1_3″ _builder_version=”3.26.3″ custom_padding=”|15px||15px|false|false”][et_pb_blurb title=”FINDING A JOB” url=”https:\/\/liveworkgermany.com\/blog\/finding-a-job\/” image=”https:\/\/liveworkgermany.com\/wp-content\/uploads\/2020\/09\/finding-a-job-1.png” alt=”finding a job in germany” image_max_width=”50%” image_max_width_tablet=”50%” image_max_width_phone=”60%” image_max_width_last_edited=”on|phone” admin_label=”Finding a Job” _builder_version=”4.5.7″ header_font_size=”16px” background_enable_color=”off” text_orientation=”center” width=”100%” max_width=”100%” module_alignment=”center” custom_margin=”|10px||10px|false|true” custom_margin_tablet=”||5vw||false|true” custom_margin_phone=”|10px|7vw|10px|false|true” custom_margin_last_edited=”on|phone” custom_padding=”5px|10px|5px|10px|true|true” link_option_url=”https:\/\/liveworkgermany.com\/blog\/finding-a-job\/” z_index_tablet=”500″ border_radii=”on|10px|10px|10px|10px” border_width_all=”1px” border_color_all=”#4d4d4d” background_color__hover=”rgba(251,219,71,0.5)” background_enable_color__hover=”on” background__hover_enabled=”on|hover”][\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”3.26.3″ custom_padding=”|15px||15px|false|false”][et_pb_blurb title=”RESIDENCE PERMITS” url=”https:\/\/liveworkgermany.com\/blog\/visas-residence-permits\/” image=”https:\/\/liveworkgermany.com\/wp-content\/uploads\/2020\/10\/visas-and-residence-permits.png” alt=”visas and residence permits” image_max_width=”50%” image_max_width_tablet=”50%” image_max_width_phone=”60%” image_max_width_last_edited=”on|phone” admin_label=”Visas” _builder_version=”4.5.7″ header_font_size=”16px” background_enable_color=”off” text_orientation=”center” width=”100%” max_width=”100%” module_alignment=”center” custom_margin=”|10px||10px|false|true” custom_margin_tablet=”||5vw||false|true” custom_margin_phone=”|10px|7vw|10px|false|true” custom_margin_last_edited=”on|phone” custom_padding=”5px|10px|5px|10px|true|true” link_option_url=”https:\/\/liveworkgermany.com\/blog\/visas-residence-permits\/” z_index_tablet=”500″ border_radii=”on|10px|10px|10px|10px” border_width_all=”1px” border_color_all=”#4d4d4d” background_enable_color__hover=”on” background__hover_enabled=”on|hover” background_color__hover=”rgba(251,219,71,0.5)”][\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”3.26.3″ custom_padding=”|15px||15px|false|false”][et_pb_blurb title=”%22HOW TO%22 GUIDES” url=”https:\/\/liveworkgermany.com\/blog\/how-to-guides\/” image=”https:\/\/liveworkgermany.com\/wp-content\/uploads\/2020\/10\/how-to-articles.png” alt=”how to articles” image_max_width=”50%” image_max_width_tablet=”50%” image_max_width_phone=”60%” image_max_width_last_edited=”on|phone” admin_label=”How to Articles” _builder_version=”4.5.7″ header_font_size=”16px” background_enable_color=”off” text_orientation=”center” width=”100%” max_width=”100%” module_alignment=”center” custom_margin=”|10px||10px|false|true” custom_margin_tablet=”||5vw||false|true” custom_margin_phone=”|10px|7vw|10px|false|true” custom_margin_last_edited=”on|phone” custom_padding=”5px|10px|5px|10px|true|true” link_option_url=”https:\/\/liveworkgermany.com\/blog\/how-to-guides\/” z_index_tablet=”500″ border_radii=”on|10px|10px|10px|10px” border_width_all=”1px” border_color_all=”#4d4d4d” background_enable_color__hover=”on” background__hover_enabled=”on|hover” background_color__hover=”rgba(251,219,71,0.5)”][\/et_pb_blurb][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_3,1_3,1_3″ _builder_version=”4.5.7″ width=”100%” custom_margin=”0vw|auto|0vw|auto|true|false” custom_padding=”0px|50px|2vw|50px|false|false”][et_pb_column type=”1_3″ _builder_version=”3.26.3″ custom_padding=”|15px||15px|false|false”][et_pb_blurb title=”LIFE IN GERMANY” url=”https:\/\/liveworkgermany.com\/blog\/life-in-germany\/” image=”https:\/\/liveworkgermany.com\/wp-content\/uploads\/2020\/10\/life-in-germany.png” alt=”life in germany” image_max_width=”50%” image_max_width_tablet=”50%” image_max_width_phone=”60%” image_max_width_last_edited=”on|phone” admin_label=”Life in Germany” _builder_version=”4.5.7″ header_font_size=”16px” background_enable_color=”off” text_orientation=”center” width=”100%” max_width=”100%” module_alignment=”center” custom_margin=”|10px||10px|false|true” custom_margin_tablet=”||5vw||false|true” custom_margin_phone=”|10px|7vw|10px|false|true” custom_margin_last_edited=”on|phone” custom_padding=”5px|10px|5px|10px|true|true” link_option_url=”https:\/\/liveworkgermany.com\/blog\/life-in-germany\/” z_index_tablet=”500″ border_radii=”on|10px|10px|10px|10px” border_width_all=”1px” border_color_all=”#4d4d4d” background_enable_color__hover=”on” background__hover_enabled=”on|hover” background_color__hover=”rgba(251,219,71,0.5)”][\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”3.26.3″ custom_padding=”|15px||15px|false|false”][et_pb_blurb title=”HEALTHCARE” url=”https:\/\/liveworkgermany.com\/blog\/healthcare\/” image=”https:\/\/liveworkgermany.com\/wp-content\/uploads\/2020\/10\/healthcare.png” alt=”health insurance in Germany” image_max_width=”50%” image_max_width_tablet=”50%” image_max_width_phone=”60%” image_max_width_last_edited=”on|phone” admin_label=”Healthcare” _builder_version=”4.5.7″ header_font_size=”16px” background_enable_color=”off” text_orientation=”center” width=”100%” max_width=”100%” module_alignment=”center” custom_margin=”|10px||10px|false|true” custom_margin_tablet=”||5vw||false|true” custom_margin_phone=”|10px|7vw|10px|false|true” custom_margin_last_edited=”on|phone” custom_padding=”5px|10px|5px|10px|true|true” link_option_url=”https:\/\/liveworkgermany.com\/blog\/healthcare\/” z_index_tablet=”500″ border_radii=”on|10px|10px|10px|10px” border_width_all=”1px” border_color_all=”#4d4d4d” background_enable_color__hover=”on” 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border_radii=”on|10px|10px|10px|10px” border_width_all=”1px” border_color_all=”#4d4d4d” background_enable_color__hover=”on” background__hover_enabled=”on|hover” background_color__hover=”rgba(251,219,71,0.5)”][\/et_pb_blurb][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Submitting a tax return\u00a0(German term: Steuererkl\u00e4rung) is not compulsory for regular employees who have no other sources of income other than their job. It is compulsory for the self-employed, or anyone who has income from other sources totalling more than \u20ac801 annually. However, even if you’re not obliged to, it’s quite possibly in your interest […]<\/p>\n","protected":false},"author":1,"featured_media":39291,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":" [et_pb_section bb_built=\"1\" custom_padding_last_edited=\"on|desktop\" _builder_version=\"3.22.2\" custom_padding=\"|90px||90px\" z_index_tablet=\"500\"][et_pb_row _builder_version=\"3.22\" background_size=\"initial\" background_position=\"top_left\" background_repeat=\"repeat\"][et_pb_column type=\"4_4\"][et_pb_image src=\"https:\/\/liveworkgermany.com\/wp-content\/uploads\/2019\/04\/german-mobile-phone-title.jpg\" align=\"center\" _builder_version=\"3.22.2\" width=\"65%\" module_alignment=\"center\" z_index_tablet=\"500\" max_width=\"100%\" border_radii=\"on|10px|10px|10px|10px\"]<\/p> [\/et_pb_image][et_pb_text _builder_version=\"3.22.2\" z_index_tablet=\"500\" 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Object%93\" header_3_text_shadow_vertical_length=\"header_3_text_shadow_style,%91object Object%93\" header_3_text_shadow_blur_strength=\"header_3_text_shadow_style,%91object Object%93\" header_4_text_shadow_horizontal_length=\"header_4_text_shadow_style,%91object Object%93\" header_4_text_shadow_vertical_length=\"header_4_text_shadow_style,%91object Object%93\" header_4_text_shadow_blur_strength=\"header_4_text_shadow_style,%91object Object%93\" header_5_text_shadow_horizontal_length=\"header_5_text_shadow_style,%91object Object%93\" header_5_text_shadow_vertical_length=\"header_5_text_shadow_style,%91object Object%93\" header_5_text_shadow_blur_strength=\"header_5_text_shadow_style,%91object Object%93\" header_6_text_shadow_horizontal_length=\"header_6_text_shadow_style,%91object Object%93\" header_6_text_shadow_vertical_length=\"header_6_text_shadow_style,%91object Object%93\" header_6_text_shadow_blur_strength=\"header_6_text_shadow_style,%91object Object%93\"]<\/p> \u00a0<\/p> \u00a0<\/p> Submitting a German tax return<\/strong>\u00a0(German term: Steuererkl\u00e4rung)<\/em><\/strong> is something which has most likely been a consideration at some point for those who are established expats in Germany but still have not got round to figuring this out, or have perhaps just completed their first year here as tax residents.<\/p> For employees who do not have any income from other sources such as self-employment or capital gains beyond a certain threshold, the simple answer to the question is that NO, it is not mandatory. However, it may very well be in your interests to complete one.<\/p> Whether or not it's worth the effort though is a more complex topic, so let's take a look at the essentials which you need to know.<\/p> Disclaimer: Neither myself as the author of this article nor the Live Work Germany website are qualified to provide tax advice according to German law. We cannot provide specialist tax services beyond any of the general tips contained herein. If in doubt, consult a professional tax advisor.<\/strong><\/em><\/p> \u00a0<\/p> <\/a><\/p> [purchase_link id=\"26316\" style=\"button\" color=\"green\" text=\"GET FREE QUIZ!\"]<\/p> Take this quick quiz if you want to find out whether it's worth your effort to submit a German tax return!<\/strong><\/p> \u00a0<\/p> \u00a0<\/p> It is not compulsory to submit a tax return in Germany if you are a regular employee and you don\u2018t have any income derived from other sources.<\/p> If you have other sources of income, then it is necessary in almost all cases except for small capital gains of less than \u20ac801 for singles (\u20ac1,602 for married couples). This usually is sufficient to cover interest from savings or dividends from modest stock portfolios.<\/p> The most common forms of income from other sources are capital gains (above the threshold in the last paragraph), rental property and self-employment as a source of extra income i.e. \"side-hustles\" such as coaching, teaching, any paid artistic pursuit, evening or weekend work, or any other business interests.<\/p> For the self-employed, which includes part-time work and freelancing, it is compulsory to submit an annual tax return. Why? Because the Finanzamt\u00a0<\/em>wants to know about any activity you have undertaken where tax is not deductible at source i.e. not deducted by your employer on your monthly payslip.<\/p> \u00a0<\/p> \u00a0<\/p> Below are a few examples where it will most likely make sense to seriously consider submitting a tax return. This is based on the likelihood of you being able to claim a rebate large enough to make it worth your while.<\/p> \u00a0<\/p> <\/a><\/p> \u00a0<\/p> \u00a0<\/p> If you plan to submit your tax return without using the services of a Steuerberater\u00a0<\/em>then the deadline is the\u00a031st May of the year following the tax year you are claiming for. For 2017 tax year, you need to submit by 31.05.2018. This also applies if you use third party apps or software products to help you complete your tax return.<\/p> HOWEVER...here comes the good part...<\/p> If you have never submitted a tax return since arriving in Germany<\/strong>, and your situation dictates that it is not compulsory for you to submit one, you can claim back up to 4 years of rebates.<\/strong><\/p> Also, if you decide to utilise the services of a Steuerberater<\/em>, the Finanzamt<\/em>\u00a0generously gives you an extra 4 months to submit your paperwork. The deadline then is 30th September.<\/p> Late submissions have been known to be tolerated with a reasonable justification and fined are not usually issued for a genuine, minor delay. It is highly dependent upon the tax office which processes it though and there is no hard and fast rule.<\/p> \u00a0<\/p> \u00a0<\/p> Whichever way you choose to submit a tax return in Germany, the forms are transmitted electronically through a system called ELSTER, which communicates directly to your local Finanzamt<\/em>.<\/p> You will receive an acknowledgement confirming that your documents have been submitted successfully. Depending on the type of system or software you are using, you may have to send originals of your supplementary supporting documentation separately by post.<\/p> Some time later you get your statement (Steuerbescheid)<\/em>. This will tell you how much you owe or how much your rebate will be. The time taken from submission to receipt of your statement is highly dependent upon which Finanzamt<\/em>\u00a0is processing it.<\/p> If you owe taxes, you have 4 weeks to pay your bill. If you're due a rebate, this is usually transferred within a few working days of you receiving your Steuerbescheid <\/em>and paid into the bank account you specify on your tax return.<\/p> \u00a0<\/p> <\/a><\/p> \u00a0<\/p> \u00a0<\/p> This is obviously based on your comfort level with regard to submitting your own taxes. Some individuals may feel more comfortable reaching out to a Steuerberater<\/em> for the first time they complete a return, whereas others my feel confident enough to go it alone first time around.<\/p> However, with that said, it does depend on the complexity of your own tax situation. In these cases specifically, I would highly recommend you consult a tax advisor.<\/p> \u00a0<\/p> \u00a0<\/p> Fees for German tax advisors are based on a regulated set of charges known as the Steuerberatergeb\u00fchrenordnung<\/em> (StBVV). Nothing like a good old long German word to describe an equally complicated set of charges! I can't even begin to explain how these work. Suffice to say, it is based on the amount of taxable income you are declaring. The more you earn, the higher the fee.<\/p> Be warned, they are not cheap! Tax advisors in Germany are highly qualified individuals who have gone through years of training and have passed a very tough exam. You are looking at a bill of several hundred Euro in most cases.<\/p> \u00a0<\/p> <\/a><\/p> \u00a0<\/p> \u00a0<\/p> The process in itself is no more or less difficult than completing a tax return in most other developed countries which have complex but well defined tax codes.<\/p> Those who are more financially savvy should not feel too phased by it. I didn\u2018t feel too daunted when I completed mine for the first time. I paid a tax advisor first time around, and just asked him lots of questions so as I could then figure it out myself the following year using the previous year as an example.<\/p> I would say that anyone with above average intelligence, who has an orderly filing system and is generally a pretty organised person is capable of submitting their own tax return. This is assuming your situation is relatively straightforward.<\/p> Having a basic understanding of what can and can\u2018t be claimed or offset against one\u2018s taxable income in Germany also helps, for sure. But we already covered some of the main ones above!<\/p> Like most things in Germany, the biggest roadblocks are figuring out what the process is, and then actually completing the task in a foreign language (or finding an expert who can explain the process to you in English).<\/p> But this last part is actually no longer an issue. There are now options out there which will allow you to\u00a0<\/span>submit your taxes online with an interface completely in English.<\/strong><\/p> \u00a0<\/p> \u00a0<\/p> <\/a><\/p> We are happy to recommend SteuerGo.de - The easy way to do your tax return in Germany<\/a>\u00a0as a great, online product which offers a very similar service but without the misleading claims.<\/p> We\u2018ve tried to make your life a little bit easier for you by creating a short quiz which you can download for FREE<\/strong>, which will give you a rough idea of what to expect back on your tax return.<\/p> \u00a0<\/p> <\/a><\/p> [purchase_link id=\"26316\" style=\"button\" color=\"dark-gray\" text=\"GET FREE QUIZ!\"] If it looks like it is worth your while to submit a tax return, then head over to SteuerGo<\/a> and check out their tax return software. The link opens up in another window so as you can finish reading this article first. It allows you to submit a complete tax return in English and what's more, you don't pay a cent up until the point where you hit \"Submit\"!<\/strong><\/p> And at \u20ac24.95 for each tax return submitted, it's an absolute bargain compared to the other options you have!<\/strong><\/p> \u00a0<\/p> \u00a0<\/p> Some of the claims being made by the one company with the most aggressive marketing are very misrepresentative.\u00a0You may have seen a recent marketing campaign on Facebook by the website germantaxes.de, which claims that you can get<\/strong>\u00a0a \u20ac935 tax rebate for 15 minutes' work.<\/strong><\/p> Sounds too good to be true, right?<\/p> Sadly, it is. This is complete bullshit. It would take 15 minutes just to type in all of the necessary information.<\/p> But first you have to dig out everything you need. Probably half an hour in itself if you have never submitted a tax return in Germany before and are not familiar with the documents necessary to give you the figures to submit on your return.<\/p> Yes, they may have an intuitive format and yes, it is much easier than struggling in German with one of the more traditional, clunky software providers out there which are aimed more at the German market.<\/p> The reality is it will most likely take you 2 or 3 hours if you want to double check everything and submit your tax return properly.<\/p> Next, let's look at the claim that you'll get \u20ac935 back for your \"15 minutes\" of work.<\/p> This may be the average figure that people get back as a rebate (this is based on figures from the German Federal Office of Statistics) but then think about how this is calculated.<\/p> For every high net worth individual who receives several thousand Euro back on his\/her tax return, this skews the figures higher. How many people do you need who only receive \u20ac50 back to balance out those who get thousands back in rebates? Therefore I find this figure to be misleading and a false flag for anyone who is expecting a nice, chunky windfall.<\/p> Also, germantaxes.de is \u20ac10 more expensive than SteuerGo.de - The easy way\u00a0to do your tax return in Germany<\/a>!<\/p> \u00a0<\/p>German Tax Return: You could be due some money back<\/b><\/h2>\n
Do I have to submit a German tax return?<\/strong><\/h3>\n
Why am I obliged to submit a German tax return?<\/h3>\n
Is submitting a German tax return worth it for you?<\/strong><\/h3>\n
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Can I submit my tax return in English?<\/h3>\n
When is the deadline for submission?<\/strong><\/h3>\n
How do you submit and receive your notifications?<\/strong><\/h3>\n
When does it make sense to consult a tax advisor?<\/strong><\/h3>\n
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What does a Steuerberater<\/em> cost?<\/strong><\/h3>\n
How difficult is it to submit my own taxes?<\/strong><\/h3>\n
Are there alternatives?<\/strong><\/h3>\n
The positives:<\/h4>\n
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The downsides:<\/h4>\n
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Looking for helpful content on another topic?<\/h4>\n
German Tax Return: Necessary? Mandatory? Worth The Effort?<\/h2>
Is it compulsory?<\/strong><\/h3>
Is It Worth It?<\/strong><\/h3>
What Are The Rules?<\/strong><\/h3>
How does it work?<\/strong><\/h3>
When does it make sense to consult a tax advisor?<\/strong><\/h3>
What does a Steuerberater<\/em> cost?<\/strong><\/h3>
So Is It Difficult To Do My Own Taxes?<\/strong><\/h3>
Your Cheapest Solution To Submit A Tax Return In English<\/strong><\/h3>
\u00a0<\/p>\u20ac935 for 15 minutes' work? Nope.<\/strong><\/h3>