Import of equity into Germany
February 12, 2014 | 25,00 EUR | answered by Ralph J. Schnaars
Hello,
I am a private individual.
1. My wife lived in Russia before she was allowed to come to Germany. She visited me several times back then and brought about 7000 euros of her own capital with her. This was not declared at customs, as the amount is under 10,000 dollars. Will the money be taxed if I deposit it into our account in Germany?
2. My wife invested in a building property in Russia in 2006. She moved into the property in 2010. In 2012, she came to Germany and the property remained unused. In 2014, we want to sell the property and transfer the money to our account in Germany (joint account). According to the Russian capital gains tax law, the property is tax-free after 3 years. Will there be additional taxes in Germany on the money from the sale of the property?
In summary: do we understand correctly that, according to the double taxation agreement, the money remains untaxed, despite the fact that the time between the investment and the sale is less than 10 years?
Kind regards,
Questioner
Dear inquirer,
Below I will provide you with my assessment of the questions you have asked, based on the facts presented.
1. The 7000 euros are subject to German income tax only if they come from German sources. If your wife earned the money in Russia and paid taxes on it there, it is not subject to further taxation in Germany and you can safely deposit it into your account.
2. It is unclear how the property was used between 2012 (when your wife moved to Germany) and the sale of the property. Additionally, it is not clear from your question whether your wife still maintained a residence in Russia. If the property was used for "personal" purposes (such as personal use or vacancy) between 2012 and the sale, the taxation of the sale will be done according to Russian tax law and will not be subject to taxation in Germany. German "speculation tax" does not apply here, as the taxation is fully carried out in Russia.
I hope this helps.
Kind regards,
Ralph J. Schnaars
mail@stwb-steuer.de
... Are you also interested in this question? 
