Are there tax differences between cross-border commuters from EU and non-EU countries?
April 1, 2024 | 60,00 EUR | answered by Selma Rosenblatt
Dear tax consultant,
I am Erik Jensen, a cross-border commuter who works in Germany but lives in Denmark. I have heard that there may be tax differences between cross-border commuters from EU and non-EU countries and I am wondering if this applies to me as well.
Regarding the current situation: I have been working as a cross-border commuter for two years and so far I have paid my taxes in Germany. Now I am worried about whether I may have potential tax advantages or disadvantages, as Denmark is not part of the EU.
I would like to know if there are differences in the taxation of cross-border commuters from EU and non-EU countries and if I may need to submit a different tax return or adhere to different tax regulations. I am particularly concerned about whether I may have to pay taxes twice or if there are ways to optimize my tax burden.
Could you please explain to me if there are tax differences between cross-border commuters from EU and non-EU countries and if I, as a cross-border commuter from Denmark, need to consider any specific tax aspects? I would greatly appreciate it if you could provide me with possible solutions or tips to optimize my tax situation as a cross-border commuter.
Thank you in advance for your assistance.
Best regards,
Erik Jensen
Dear Mr. Jensen,
Thank you for your inquiry regarding the tax differences for cross-border commuters from EU and non-EU countries, especially in relation to your situation as a cross-border commuter from Denmark working in Germany. It is understandable that you are concerned about possible tax advantages or disadvantages and how you can optimize your tax burden.
First and foremost, I would like to clarify that your nationality (Denmark being part of the EU) does not play a role when it comes to the tax treatment of cross-border commuters. Instead, tax regulations primarily depend on the country where you work and the country where you reside.
As a cross-border commuter from Denmark working in Germany, you are generally subject to German taxation. This means that you must declare and pay taxes on your income from working in Germany in Germany. There may be special regulations and agreements between Germany and Denmark regarding the taxation of cross-border commuters, which aim to prevent double taxation.
It is important to carefully evaluate your tax situation as a cross-border commuter and potentially take advantage of the applicable regulations and agreements to optimize your tax burden. In general, you may need to file tax returns in both countries to ensure that your income is correctly taxed and to potentially benefit from tax advantages.
Therefore, I recommend that you consult with a tax advisor who is familiar with the taxation of cross-border commuters and can assist you in optimizing your tax situation. A professional tax advisor can also help you take advantage of any tax benefits and avoid double taxation.
I hope that this information has been helpful to you. Please feel free to reach out if you have any further questions.
Best regards,
Selma Rosenblatt
