tax clarification for move within EU but family still in Germany

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decow
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Joined: Tue Oct 29, 2024 1:56 pm
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tax clarification for move within EU but family still in Germany

Post by decow »

Hello,
I would need some help on tax clarification for the below.
I am a German citizen living in Germany for the past 16 years. I am married and also have a kid here about to complete his abitur in the coming years.

I would really need a change of place after living here for so many years. I am planning to move to another country within EU for a few years and start living there. Unfortunately my family will not join me and I plan to visit them during the weekend / holidays .

I have spoken to my company based out of Germany and they do not have an office to the country that I am planning to move. But they are willing to offer a freelancing contract and I can work as a contractor for them from the new country that I would move.
I have a house that is jointly owned with my wife and in addition , I also have a rental property in my name. No plans to sell those since I would be returning to Germany after 2 or 3 years in case if my move does not work out.

Could someone help me with the below questions:

1. Should I de-register here for my house address, although I still own the house partly and my family would live there?
2. How to cancel my health insurance and also de-register from finanzamt.
3. How will I be taxed here. My wife is working here and I also get rental income from my other property. so far we are filing our taxes jointly. Going forward once I leave, I shall submit my taxes in the new country and will my income in that country also be taxed here in Germany and should I also declare those every year here.
4. Anything else I should consider from a tax perspective since I plan to return to Germany after 2 or 3 years. The move may be temporary for few years but not sure for now .

I have reached out to my tax consultant but she is not aware of the tax implications unfortunately for this scenario.

Any inputs would help. Thank you all!!!
decow
Posts: 3
Joined: Tue Oct 29, 2024 1:56 pm
Has thanked: 1 time

Re: tax clarification for move within EU but family still in Germany

Post by decow »

any tips here, i hope Panda munich would offer her expertise on this...
Millgor
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Re: tax clarification for move within EU but family still in Germany

Post by Millgor »

Hi, just saw this now. You should probably seek professional advice, which, disclaimer, this definitely is not. Only thing I can tell you from general knowledge is that German unlimited tax liability (unbeschränktes Steuerplicht), unlike most other countries, is tied extremely tightly to residency. If you have so much as a spare bedroom in someone elses house in Germany where you are regularly free to come and go and stay when you are in Germany, then you are highly likely to be considered tax resident in Germany and taxable on your entire worldwide income in Germany (ask Boris Becker about it, it famously caught him out). You would then have to consult the double taxation agreement between German and your destination country to see how that would pan out for you.
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