Tax return in Germany and Austria with 2 residences and consideration of insurances
November 24, 2012 | 25,00 EUR | answered by Michael Herrmann
Hello,
I am Austrian and have been working in Germany for several years. I have a residence in both Austria and Germany. Since I work in Germany and only pay taxes in Germany, I only file my income tax return here. I assume that is correct so far!? Or is a tax return in Austria still necessary?
Now, it is the case that I have taken out several insurances in Austria for which I pay contributions, including a private pension insurance and a private accident insurance. Normally, these could be included in an income tax return (at least in Austria). However, since I do not pay taxes in Austria, I assume that I would not receive any tax refunds if I were to include the insurances in a tax return (which is why I have not filed a tax return in Austria). In Germany, I am not sure if I have the opportunity to include these insurances in the income tax return, as I pay them in Austria. Is there any way I can take these insurances into account in Germany?
Thank you for your help!
Dear inquirer,
First of all, thank you for your inquiry, which I would like to answer based on the information you provided and in the context of your commitment in a first consultation. The response is in accordance with the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.
Since you have a residence in Germany, you are subject to unlimited tax liability here. The same rules apply as for residents without an additional foreign residence.
The mentioned insurances fall under the "other provisions for provision" which are only partially deductible. The maximum amount is € 1,900 per person. However, this amount is offset by the unlimited deductible provisions for provisions, especially statutory health and long-term care insurance or comparable services from private providers, which are fully deductible. In practice, there is no room left for the consideration of other provision expenses.
In general, contributions to private insurances are deductible, as the companies are located within the European Union.
Regarding questions about Austrian tax law, information cannot be provided in this forum.
I hope that these explanations have given you a sufficient overview of the situation in the context of your commitment and this initial consultation, and remain
Yours sincerely
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax consultant
