Taxes in Germany: who should declare?
Filing income tax in Germany can seem daunting, especially for foreign students and professionals. But don't worry! This guide will help you understand who needs to declare, how to do it, and what the main rules are. Let's simplify the process so you can focus on what really matters: your experience in Germany.
Who must declare taxes in Germany?
In Germany, not everyone has to declare income tax. The German system is different from the Brazilian one in many ways. For most workers, the tax is deducted directly from the wage by the employer. This means that many people don't have to file an annual return.
But there are cases where you need to declare. For example, if you have more than one job, are self-employed, or have income from sources other than your main salary. It is also mandatory to declare if you live in Germany for more than six months in the tax year. In this case, you are considered a tax resident and must declare all your worldwide income.
Brazilians and the German tax
If you are Brazilian and are Study and Work in Germany, it's important to understand your tax obligations. Here are some important points:
- Tax residence: If you live in Germany for more than 183 days a year, you are considered a tax resident.
- Global income: As a tax resident, you must declare all your income, including what you earned outside of Germany.
- Temporary work: Even if you are not a tax resident but make money in Germany, you may need to declare.
- Students: If you're a student and you work, you may need to declare depending on how much you earn.
- Freelancers: Self-employed people generally have to make the declaration.
Remember that each situation is unique. If you have questions, it's best to consult a tax specialist.
When it is not necessary to declare
There are situations where you don't have to file a tax return in Germany. This usually happens when your income is low or when the tax has already been fully paid at source. For example, in 2024, if you are single and earn less than 11,604 euros a year, you don't have to declare. For couples who file a joint declaration, this limit is 23.208 euros.
Another common situation is when you only have one job and the tax is already deducted correctly from your salary. In this case, unless you have other sources of income or deductions to declare, it is generally not mandatory to file the declaration. Students who do small jobs (called “minijobs”) are also usually exempt from declaring, as long as they don't earn more than 520 euros a month.
How to file a tax return
Filing a tax return in Germany may seem complicated, but with the right step by step, it gets easier. Here's a simplified guide:
- Gather the documents: Gather all income receipts, deductible expenses, and bank statements.
- Access ELSTER: This is the German government's online tax filing system. You need to register first.
- Fill out the forms: ELSTER will guide you through the right forms based on the information you provide.
- Review everything: Please check that all information is correct before submitting.
- Submit the statement: After reviewing, submit your statement through the system.
- Wait for the result: The government will review your statement and let you know if you are entitled to a refund or if you need to pay something.
Tips for saving on taxes
There are several ways to legally reduce your income tax in Germany. One of the main ones is to take advantage of all possible deductions. For example, if you work from home, you can deduct part of your rent and electricity and internet bills. Expenses for transportation to work, courses related to your profession, and even charitable donations can be deducted.
Another important tip is to keep any receipts and proof of expenses that can be deducted. In Germany, it's common for the government to ask for proof of the deductions you've declared. Having everything organized can make a big difference in the final amount of your tax and avoid future problems.
Be Easy
Dealing with taxes in a foreign country may seem challenging, but with the right information, it becomes much simpler. A Be Easy Exchange is here to help you with every step of your journey in Germany, including understanding tax obligations. Our experts can guide you on best practices for dealing with taxes while studying and working in Germany. Don't let tax concerns get in the way of your incredible experience abroad. Contact Be Easy today and discover how we can make your adaptation in Germany smoother and more successful!
