Besides questions regarding daily life, expats in Germany are also faced with many questions of a fiscal nature. Germany has one of the most complicated tax systems in the world.
Observance of the double taxation agreement between Germany and many other states can prevent an expatriate from having to pay tax both in Germany and in his home country. Countries having a double taxation agreement with Germany are marked in dark blue on the map to the left. Double taxation on income can usually be avoided. Specialists earning good money such as IT consultants, engineers or scientists whose work takes them around the world, are the very ones who often have neither the time nor the expertise to deal with complex tax issues. Nevertheless, they ought to ask themselves the following questions, for example, even if they appear banal:
- Do I live in a hotel or a flat?
- Is my main place of residence in Germany or my home country?
- For what period of time is the work designed to last?