Full or progressive tax liability after emigration and retirement?
Good day,
we have been living in Dubai for a few years and have not been subject to taxation in Germany since then (no income in Germany, deregistered since emigration, no real estate, etc.).
My wife and our 2 children will be moving back to Germany at the end of January. Therefore, I think I will have to submit an income tax return for 2022 in 2023... (since the move back will only happen in 2022 and we have no tax obligations towards Germany in 2021...).
My wife has no income in Germany. My income in Dubai, converted to EUR, is relatively high.
Now I need advice on how to find out what to expect in 2023. Can I expect a high tax bill, since we will also not be paying monthly income tax in 2022? To what extent am I liable for taxes if my wife lives in Germany but I live and work in Dubai?
I will definitely not be in Germany for 183 days next year, I will continue living in Dubai. If we consider buying a house in Germany where my wife and children will live, will I then be fully tax liable in Germany with my salary?
We are considering 2 scenarios:
One consideration is to buy a house where my wife and children will live. The house will be in mine and my wife's name, but I will continue living in Dubai. Will I then be fully tax liable in Germany due to owning property there, even though I do not live in Germany myself but only my wife?
The other consideration is to rent. The rental agreement will be in my wife's name. I will still live in Dubai and will not be registered at the rental address in Germany. I also spend less than 183 days a year in Germany, as my main place of residence is still in Dubai, in case the 183-day rule plays a role?!
I have also read that the double taxation agreement between the Emirates and Germany will expire on 31.12.2021. To what extent does this play a role in our case?
In summary:
Wife residing in Germany, no income.
Husband residing and earning income in Dubai.
In this case, am I fully tax liable in Germany with the full income tax rate of around 30% on my income from the UAE, or only partially tax liable, and to what extent does property ownership play a role in our consideration?
Could you possibly assist me in this case?
Thank you very much.
Best regards
