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Job in Austria - residence in Germany

December 15, 2014 | 25,00 EUR | answered by Tobias Heinrich

Dear experts,

I may be facing a job change to Austria, where I would work 3 days on site and 2 days from home. My place of residence would remain in Germany (not in a border region) and as far as I understand, I would pay income tax in Austria (there are no other sources of income in Germany). Is this understanding correct?

The potential employer is now showing me that \\\"more of the gross remains for me\\\" - in my case 61% instead of 54%. This can be understood based on tax rates and social security contribution calculations. When it comes to social security contributions, the question arises whether the benefits are comparable when paying lower contributions (this can probably only be answered partially by a tax advisor)? However, my main question is whether there are any other taxes to consider in this calculation (Do I have to pay Soli in Germany in this case? Do I have to pay church tax in Germany? Do I have to pay a second residence tax in Austria?).

Thank you in advance for answering my question and I hope I have provided enough information for this.

Kind regards,

Tobias Heinrich

Dear questioner,

In the context of an initial consultation and your fee contribution, taking into account the regulations of this forum, I would like to answer your question.

The double taxation agreement between Germany and Austria states that the mentioned employment income (Assumption: employer is based in Austria) is only taxed in Austria.

However, Germany reserves the so-called progression reservation, if there are no other German income, this remains without effect. Please note that this is considered on a per calendar year basis. A job change "during the year" would therefore lead to additional tax in Germany in that same year.

Regarding Austrian social security contributions, as a German tax advisor, I am not able to advise you on this matter. The same applies to any potential second residence tax in Austria.

I hope this answers your question adequately.

Best regards,
Tobias Heinrich