How does a move abroad affect my property taxation?
June 17, 2022 | 50,00 EUR | answered by Tina Ullmann
Dear tax advisor,
My name is Anna Ahlert and I am currently residing in Germany. I own a property here that is rented out and brings me regular income. Now, I am planning to move abroad and I am wondering how this move will affect my property taxation.
Currently, I pay taxes in Germany on the rental income from my property. However, I am unsure if moving abroad will change my tax situation. My concern is that I may have to pay double taxes or that my tax rate may increase.
Could you please explain to me in more detail how moving abroad will affect my property taxation? Are there ways to avoid or minimize any tax disadvantages? What steps do I need to take to ensure that my tax obligations are correctly fulfilled, both in Germany and abroad?
I thank you in advance for your help and advice.
Best regards,
Anna Ahlert
Dear Mrs. Ahlert,
Thank you for your inquiry regarding the effects of moving abroad on your property taxation. Moving abroad can indeed have an impact on your tax situation, especially if you own a property in Germany that is rented out and generates regular income for you.
First of all, it is important to know that Germany, as the country of residence, generally has the right to tax worldwide income. This means that even after moving abroad, you are still subject to taxation in Germany if you earn income here, for example from renting out property.
So, if you continue to receive rental income from your property in Germany, you must pay taxes on this income in Germany. However, there are double taxation agreements between Germany and many other countries to ensure that income is not taxed twice. In your case, it is important to check if there is such an agreement between Germany and the country you are planning to move to.
There is also the option to apply for limited tax liability in Germany when relocating abroad. This means that you will only be taxed in Germany if you earn income here that is subject to taxation. It is important to check the specific requirements for limited tax liability and, if necessary, to submit an application.
To avoid or minimize tax disadvantages, I strongly recommend contacting a tax advisor early on who is familiar with international taxation. An expert can help analyze your tax situation, identify possible tax benefits, and assist you in fulfilling your tax obligations in Germany and abroad.
I hope this information was helpful to you. If you have any further questions or require more detailed advice, I am happy to assist you.
Best regards,
Tina Ullmann, Tax Advisor
