Residence in Germany, place of work in Austria, no residence in Austria, not a cross-border commuter. Where is the tax liability?
August 2, 2015 | 50,00 EUR | answered by StB Patrick Färber
I have been working in Germany up to now, also have my residence in Germany and my family also lives in Germany. I will start a new job with my workplace in Austria/Vienna on the 14th of September.
I will maintain my main residence in Germany, and my family will also stay in Germany. I will be living in a hotel during the week (I do not plan to register a residence in Austria). Since I will be spending a lot of time outside Austria as part of my new job and will be in Germany and other European countries, I will not be in Austria for more than 183 days. I am not a cross-border commuter, as the distance between my German residence and my job in Austria is 500 km.
My questions now are: 1. Do I have to file two tax returns for 2015 (one in Germany, one in Austria) because I earned my income in Germany until the 13th of September? 2. Can I avoid my tax liability in Austria, since the income tax is higher for me in Austria than in Germany? 3. Would the situation change if I were to register a second residence in Austria? 4. The employer in Austria will deduct the income tax and social security contributions directly from my salary. If I were to remain liable for tax in Germany, how would I get these taxes back?
Thank you in advance for your help!
Best regards
Dear questioner,
Regarding your questions:
1) In Germany, you must definitely do so, as you will remain unlimitedly tax resident in Germany even after September 13th.
In Austria, you are subject to limited tax liability with your Austrian income. You can opt to file a tax return there, although (as in Germany) the tax rate for limited tax residents is rather unfavorable. If you earn more than 90% of your family's total income in Austria, you can also choose to pay income tax as an unlimited tax resident there.
However, you would ultimately need to consult an Austrian tax advisor to obtain legally binding information.
2) You cannot avoid tax liability in Austria for the days when you are physically working there.
In your situation (family = center of life = residency in Germany, work in Austria), it is important to note that the workdays when you physically work outside of Austria will be fully taxed in Germany. The income tax deduction in Austria must be adjusted accordingly. Therefore, you would need to divide your income based on 220 workdays, for example, 120 days in Germany/another country and 100 days in Austria. The 120 days would be fully taxed in Germany within the scope of unlimited tax liability. Make sure to make any necessary advance payments.
3) Residency
Upon taking up residency in Austria, you will become unlimitedly tax resident there and can file a "full-fledged" tax return applying the regular tax rate rather than the less favorable rate for limited tax residents. Please clarify this with a tax advisor in Austria.
4) Income tax in Austria
Refer to point 2):
The workdays in Austria will be taxed there, while the income tax must be adjusted for the days worked outside of Austria.
In Germany, there is an application for (partial) exemption from income tax deduction. Ask your employer in Austria, an Austrian tax advisor, or directly the Austrian tax authorities about the procedure in Austria, it might be similar.
I hope I could provide you with sufficient guidance! Some of your questions relate to Austrian tax law, which I find difficult to provide legally binding advice on. However, Austrian tax law is similar in many aspects.
Best regards,
Tax advisor P. Färber
post@richtig-gegensteuern.de
