Tax class selection when marrying a Swiss woman.
November 11, 2011 | 100,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
I live and work in Hessen (main place of residence) and am currently taxed in tax class I - widowed. Now I would like to remarry, my wife is Swiss, currently not employed, and will move into my single-family home (main place of residence is in Hessen). We aim for a joint assessment. She is currently not employed. Questions: a) What requirements must be met for me to claim tax class III after the marriage? b) Can my wife maintain her house in Switzerland, where her minor son currently lives (care is ensured)? Could there be problems if she were to stay in Switzerland for a few days at a time? A later move to Germany is planned. c) Due to an accident, my wife is currently not employed. If she were to work in Switzerland again on a part-time basis in the future, what impact would this have on my tax classification? Would tax class III remain for me and would my wife be taxed in Switzerland? What disadvantages would she have to expect (similar to tax class V in Germany)? d) Is there anything else I should consider? Thank you in advance. - Kind regards -
Dear inquirer,
Thank you for your inquiry, which I would like to answer based on the information provided and in the context of your situation as follows:
Married employees are classified in tax class III if the other spouse is classified in tax class 5 or does not receive any wages. Since your wife is initially not employed, you must choose the tax class combination 3 (yourself) and 5 (your wife).
Regardless of when you get married in the calendar year, by submitting an income tax return the following year for the previous year, you will be treated as if you were married for the entire previous year.
Example:
If you get married on December 1, 2011, you will submit a joint income tax return for 2011 in 2012. You will then be treated as if you had been married for the entire year 2011, which would lead to a significant tax refund. By submitting a joint income tax return, a joint assessment will be carried out.
The types of assessment for spouses are defined in § 26 paragraph 1 sentence 1 EStG as follows:
"Spouses who are both subject to unlimited income tax liability within the meaning of § 1 paragraph 1 or 2 or § 1a and do not permanently live separately and who met these conditions at the beginning of the assessment period or during the assessment period, can choose between separate assessment (§ 26a) and joint assessment (§ 26b); for the assessment period of the marriage, they can instead choose the special assessment according to § 26c"
In order for a joint assessment to be carried out and for your tax class III to be guaranteed for the future, the following conditions must be met:
1. You and your wife must be subject to unlimited income tax liability
2. You must not live permanently separately and
3. Conditions 1 and 2 must have existed at least one day in the calendar year
Regarding condition 1
Your wife and yourself are subject to unlimited income tax liability in Germany if you have ONE residence or habitual abode in Germany.
Regarding condition 2
Spouses do not live permanently separately if there is a marital community of life between them.
Regarding condition 3
If what is said under conditions 1 and 2 exists for at least one day in the calendar year, then the conditions for a joint assessment and for yourself being classified in tax class III are met.
In your specific case, this means:
Your wife must register legally with her primary residence in your home, regardless of the legal regulations for tax purposes.
It is assumed that the center of life of the wife is with her husband. In your case, there is a marital community of life in Germany, and you do not live permanently separately.
Your wife can keep the house in Switzerland and can also stay in Switzerland for a few days. The nationality of your wife does not matter for the assessment of tax liability.
Since your wife will be subject to unlimited income tax liability in Germany, there will be no change in your tax class regarding your wife working in Switzerland and not returning to Germany daily. Her salary would be taxed in Switzerland according to the double taxation agreement and would be tax-free in Germany. The tax-free income of your wife would only increase the tax rate on your own income under the progression clause if a joint assessment is carried out.
I hope that my explanations were helpful to you.
Yours sincerely,
Ulrich Stiller
Tax consultant / Business economist
