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By Reinhard Schinkel (More) • Last updated on October 07.03.2024, XNUMX • First published on 08.09.2014/XNUMX/XNUMX • So far 8878 readers, 1806 social media shares Likes & Reviews (5 / 5) • Read & write comments
Make numerous emigrant programs on television Lust, also to live permanently in the distance: Just get away, the better life is already waiting. But what are the legal and tax hurdles? Just with Wealth it will be difficult!
Admittedly, the thought sounds very tempting; simply to break off his tents in Germany and start a new life in warmer climates and perhaps even in a so-called low-tax country.
Before the road to the new paradise, however, the legislator has built up some hurdles. On the one hand, this must be skipped. On the other hand, the highest judges of the European Court of Justice put the financial administrations of the countries within the limits.
When moving to Switzerland, for example, the legislators' intention is to pay a tax bill. This means de facto: once German tax liability always German tax liability.
This is always limited to the first five years after the final move, but it still causes great pain in the Brieftasche.
A German plaintiff did not want to put up with that. His wages were taxed in Switzerland and should still be taken into account for the Swiss tax – are taxed in Germany.
This taxation practice is now being examined before the European Court of Justice.
But even if you are not just a “private individual”, but with your Company want to relocate, a fictitious sale is assumed, with the result that hidden reserves are revealed.
The Spanish financial authorities would also have taxed the ill-gotten profits in this way, but have also been restricted by the European judges (AZ: C371 / 10).
The Spanish laws are comparable with the German regulations. Nevertheless, the legislature does not (yet) need any action.
So how can a “flag out of Germany” be implemented as tax-friendly as possible? There are a few things to consider when it comes to emigration and taxes. For example, when an actual move or relocation takes place. Or your personal tax background.
In order to understand the tax aspects of emigration, we first have to clarify what emigration or relocation actually means. Because: emigration is not the same as emigration. You no longer want to be based in Germany? In order to achieve this, you have to relocate both your place of residence and your habitual residence from Germany. Specifically, this means:
You must live with your entire household in your former household Family Leave Germany. So it's not enough for you alone to leave your home country and yours Ms. and children remain in Germany. The undesirable consequence: It is assumed that you continue to have the center of your life in Germany due to the close family ties.
There are also specific regulations for your home:
The German Treasury also installed a horse-foot here. Rental to close relatives or a temporary rental is not recognized!
They have to stay less than 6 months (183 days) or less than one year in Germany for exclusive visits, recreation and spa stays. Attention!
The current case law has further exacerbated the requirements: even the regular overnight stay for several days a month can lead to an ordinary stay in Germany, even if you do not live an 183 days in one piece here.
Short-term interruptions of the stay in Germany are not taken into account and are counted as a cohesive stay.
It is not only the “weekend trip to your new home that is considered short-term! A period of three to four weeks can be regarded as short-term (e.g. annual leave abroad).
All these points must be observed, so that a change of residence according to German tax law has actually taken place.
Otherwise, even if you are staying for more than one year, you will continue to be resident in Germany with the undesirable consequence of the comprehensive German tax liability with your world income.
Before you finally break up your tents in Germany, you must of course deal with the existing assets and, if necessary, rearrange them. Why?
The catchphrase here was: “essential economic interests”. If these continue to exist in Germany, financial management tools are used to secure German tax revenue.
In Germany, they are subject to extended restricted tax liability. What is meant by this?
The material requirements (essential economic interests) are:
But too much German wealth can have unpleasant consequences:
If you still have assets exceeding 30% of your global assets or 154.000 Euro in Germany, you will also be subject to the extended limited tax liability as well as your income from Germany more than 30% of the world income at least 16.500 Euro in any case with more than 62.000 Euro exceed.
There is hardly anything to be done about the personal requirements, but very much on factual obstacles imposed by the German financial administration.
If you now also shift your assets according to the requirements of the German tax authorities, a peaceful old age can at least tax, nothing more in ways to stand.
According to the Handelsblatt, Reinhard Schinkel is one of Germany's best tax consultants and a specialist author for tax law. Schinkel was born in Berlin in 1970. Two days after being appointed as a tax consultant, he founded his own law firm in 2007 and embarked on the adventure of self-employment. Since 2009 he has published various books as a specialist book author. Since 2011 he has been writing monthly for the well-known business magazine Fuchsbriefe from Berlin, since 2016 his comments on the judgment have appeared in the magazine Agrarbetrieb. He is the managing partner in the tax consultancy company HSP STEUER Berlin Southeast according to the credo "Passionate tax consultant". More information at www.hsp-steuerberater-berlin-suedost.de All texts by Reinhard Schinkel.
I think that is a very important topic, because I want to emigrate next year. Thanks!
Thanks for the great, helpful contribution!
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