Germany Tax Residence and Foreign Income

A retained home can establish residence

An individual with a German residence or habitual abode generally has unlimited income-tax liability. A residence is a dwelling held in circumstances indicating it will be retained and used; it is not simply a citizenship test.

More than six months, with exceptions

A continuous stay exceeding six months normally establishes habitual abode from its beginning, ignoring short interruptions. This specific rule excludes visits solely for recreation, treatment or comparable private purposes lasting no more than a year; a separate residence can still matter.

Worldwide-income baseline

Unlimited income-tax liability generally covers worldwide income. The Ministry of Finance contrasts this with limited liability on domestic-source income; applicable treaty relief must still be examined.

Non-residents can remain taxable

Without a German residence or habitual abode, specified German-source income can attract limited liability. Section 1 also contains special public-service and application-based cases, so leaving is not a universal exemption.

Use the relevant agreement

Double-taxation agreements allocate taxing rights where domestic claims overlap. Consult the relevant country agreement rather than assuming that foreign income is automatically exempt or taxed twice.