What impact does double taxation have on my tax situation as a retiree?
October 10, 2023 | 120,00 EUR | answered by Isabel Zimmermann
Dear Sir or Madam,
my name is Erwin Richter and I have been receiving my pension from Germany for several years. During my career, I also worked abroad and paid taxes there. Now I am concerned about double taxation and the impact it may have on my tax situation as a retiree.
Currently, I pay taxes in Germany on my pension, and I am afraid that I will also be taxed in the country where I worked. This would result in me facing a double tax burden that could significantly affect my financial situation.
I am not sure about the regulations in place to avoid or at least minimize double taxation. Are there specific agreements between Germany and the country where I worked that could help me? Or are there other ways to reduce my tax burden?
I would greatly appreciate it if you could provide me with information on the effects of double taxation on my pension and suggest possible solutions. I want to ensure that I do not unnecessarily pay too much taxes and can optimize my financial situation.
Thank you in advance for your assistance.
Yours sincerely,
Erwin Richter
Dear Mr. Richter,
Thank you for your inquiry regarding double taxation in connection with your pension from Germany. It is understandable that you are concerned about a possible double tax burden and the impact on your financial situation as a retiree.
First of all, I must tell you that double taxation is a common issue when earning income both domestically and abroad. Fortunately, there are various regulations and agreements in place to avoid or at least minimize double taxation.
In your case, since you have worked abroad and paid taxes there, it is important to determine whether Germany has a double taxation agreement with the respective country. These agreements specify which income is taxed in which country and how double taxation is avoided. You may be entitled to tax relief or a refund of overpaid taxes due to such an agreement.
Therefore, it is advisable to seek advice from an experienced tax advisor who is familiar with international tax matters. Together, you can assess whether and to what extent you can benefit from a double taxation agreement and what steps you need to take to optimize your tax burden.
Furthermore, there are other ways to reduce your tax burden, such as claiming deductible expenses or special deductions. A tax advisor can assist you in maximizing all relevant options and optimizing your tax situation.
I hope this information is helpful to you and supports you in your tax situation. If you have any further questions or would like more detailed advice, I am at your disposal.
Kind regards,
Isabel Zimmermann
Tax Advisor
