Living in multiple countries
May 28, 2013 | 30,00 EUR | answered by Steuerberater Thomas Textoris
I am retiring at the end of the year. In addition to my statutory pension, I also receive a company pension and a pension (AVP) from salary conversion.
Afterwards, I plan to buy a house in France. However, I also have an apartment in Germany and in Spain.
I will probably spend most of my time in France, but likely less than 181 days.
Question: where do I have to pay my taxes, or where can I pay my taxes?
Dear questioner,
in the context of an initial consultation and considering the regulations of this forum, I would like to answer your question.
Basically, in Germany, anyone who has a residence or their habitual abode in the country is subject to unlimited income tax liability. Since you have a residence in Germany, you would therefore still be subject to unlimited tax liability in Germany according to § 1(1) EStG. According to Art. 2 of the Germany/France Double Taxation Agreement, you are initially considered resident in France as well, since you have a permanent place of residence there, the same would apply to Spain.
Subsequently, the Double Taxation Agreement focuses on the center of vital interests (the country to which closer economic/personal relations exist) and habitual abode (more than 6 months). If none of these apply to the relevant countries, citizenship determines the tax liability.
Since the center of vital interests is prioritized (see Art. 2 (1) No. 4 D/FR), it should be assessed first. This determination requires a comprehensive assessment of both personal and economic relationships based on the totality of the objective circumstances of the individual case. Criteria for assessing personal relationships can include circles of friends and acquaintances or participation in social life in a location. The quality of the accommodation also plays a crucial role.
Criteria for assessing economic relationships include factors such as the location of work in case of employment, location of real estate, income in a country.
I cannot make a final assessment here. From a purely economic perspective, your center of vital interests is likely to be in Germany due to pensions. Personal relationships can only be assessed by you.
If you come to the conclusion that your center of vital interests is in Germany, you should continue to file an income tax return in Germany and pay taxes there.
If determining the center of vital interests is not possible, habitual abode will decide. Since, according to your information, your habitual abode in France is less than 6 months... you would need to spend over 6 months in Germany. Due to your residence in Spain, this is unlikely to be the case (?).
Finally, citizenship will be decisive (see above).
Kind regards,
Thomas Textoris
Tax consultant
