Paying Income Taxes in Germany

Expats are expected to pay tax on income that has come from a German source. Individuals who earn more than those that are on lower salaries will pay more tax.

Residents of Germany or individuals who have an income from the country must pay tax on salaries, self-employed earnings and other sources of money. Foreign nationals will be required to get a tax registration card once they have started to work in the country.

Tax is generally taken from the employee’s salary along with any social security contributions. All expats that are employed or have their own business and must complete an annual tax return regardless of if they are formally employed or doing freelance work.