Ask a tax advisor on the topic of Double taxation

Avoiding taxation in Germany for commuters between Spain and Germany

November 4, 2015 | 55,00 EUR | answered by StB Patrick Färber

I am likely to work in Spain next year, meaning I will have a Spanish employment contract and receive my salary in Spain. However, I will commute to Germany on weekends and I also want to keep all my insurances (car, life insurance, private health insurance) running in Germany as usual, and therefore have a registered address in Germany. Additionally, I would occasionally work from home in Germany, even though my contract states that my work is to be done in Spain.

I have the following questions regarding this, so that I only have to pay taxes in Spain:
Is it sufficient if I work more than 183 days outside of Germany? Do I have to be able to prove this, for example with flight tickets?

Could there be tax complications if I maintain my residence in Germany and if so, what are they?

Could there be tax complications if my Spanish employer deposits my salary into my German account?

What other factors do I need to consider to ensure tax compliance?

Thank you very much!

Best regards,

StB Patrick Färber

Dear inquirer,

Based on the information you provided, I can give you an initial assessment as follows:

Due to your residence in Germany, you remain subject to unlimited taxation here. However, your salary will be taxed exclusively in Spain if you physically perform your job there. It does not matter how many days you spend in each country. Simply holding a Spanish employment contract and a residence there is sufficient. Working from home would technically be disadvantageous, as you would then have to declare those work days as taxable income in Germany. However, since there is no mention of this in your contract and it is not clear to the tax authorities, this issue can be seen as relatively relaxed. If you regularly work from your home office, your Spanish employer may potentially have a permanent establishment in Germany.

You can maintain all your accounts/insurances here without any problems, as your salary is taxed based on the principle of activity. However, I assume that you do not have any other sources of income in the country.

I hope this overview helps!

Best regards,
Patrick Färber
Tax Advisor