Author: Mario

• Are you the owner of a holiday home in Florida or Spain or other countries?
• Do you earn income from it?
• Are you planning to purchase a foreign property with the intention to rent it?
• Are you planning to sell your foreign property?

If so, these transactions also have an impact on your German tax return.

In principle, under the usual double taxation agreements (DTAs), the state of residence is entitled to tax rental income.

Double taxation is avoided in most DTAs by exemption subject to progression reservation (exception, for example, Spain; here the credit method, in this case we need to file the “Anlage Vermietung” in the German tax return). We check whether there is an exception to the progression reservation in accordance with national regulations.

For example, the rented house in Florida must therefore be recorded in the US tax return and exempt for taxation in Germany, but subject to progression reservation.

We advise on the calculation of progression income and prepare your “Anlage AUS” for your German tax return. Progression income must be determined in accordance with German regulations. We cover all possible advertising costs and take advantage of the depreciation options.

We are also looking into the possible use of losses regarding local loss clearing rules.

In addition to questions about income tax, we also clarify questions of VAT.

International cooperation partners help you to prepare tax returns abroad.

We look forward to hearing from you!

Do you inherit, for example, real estate, accounts and other assets abroad?

Are you planning to transfer your apartment in Mallorca or your house in Florida during your lifetime?

These transactions can create inheritance and gift tax obligations both in Germany and abroad.

Through our international network of tax consultants and lawyers, we can handle cross-border inheritance and gift cases from a single source.

With our partner lawyers, we clarify the obligations in Germany (notification of acquisition, inheritance tax return, administration of the estate) as well as in cooperation with our international cooperation partners the obligations abroad. For example, declarations may be required at the foreign consulates, the acceptance of inheritance tax by a foreign notary and the filing of an inheritance tax return abroad.

Double taxation must be avoided!

With a few countries, there are also double taxation agreements (DTAs) in the field of inheritance and gift tax: USA, Greece, France, Denmark, Switzerland.
Without an DTA, a possible double taxation by offsetting inheritance tax under national law can be avoided.

Please feel free to contact us.

• Do you work in Germany with a local or foreign contract?
• Your family stays in your home country or comes with you to Germany?
• Have you moved in or moved away from Germany during the calendar year?
• Do you speak English?
• Do you have frequent business trips abroad?
• You are on an assignment as an Expat or Impat by your employer?
• Do you have a job-related double household or relocation costs in the course of your relocation?
• Does your children attend or should attend a private school?
• Are you planning a master’s degree at home or abroad?
• Don’t understand your employer’s payroll?
• You drive a company car and tax a high benefit in kind?
• Do you have any questions about child benefit in Germany?

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If even one question can be answered yes, we are the right contact person!

We advise you on these points and prepare your German tax return considering possible foreign income and taking advantage of as many advertising costs and lump sums as possible. For example, we are looking at the possibilities for reducing the taxation of company cars and the advertising costs of double householding.

We clarify the right of taxation for cross-border employment as an employee.

Our communication is completely full in English. We take care of you, are reachable and use the most diverse communication channels (email, facetime, Skype, phone, meeting).

We conduct discussions with the tax office, answer questions and check your final tax assessment.

Interest?

Contact us.

Germany has concluded double taxation agreements (DTAs) with many countries (www.bundesfinanzministerium.de).

With a variety of sources of income worldwide, we check where you are taxable, which type of income is to be allocated to your income and whether and to what extent double taxation arises.

We help you avoid them!

Using the DTAs, we check in which state your residence is located and which state the respective tax right is assigned. Double taxation can be avoided by exempting income or offsetting.

In Germany, an exemption/credit triggers various declaration obligation – Appendix AUS, N-AUS, progression tax. We optimize your tax by exhausting the deduction options.

Depending on the DTA, there are different ways of avoiding double taxation with different effects in the context of the tax return. For example, in the case of rentals in Spain, the so-called credit method applies with the consequence of declaring the rental in Germany. If, on the other hand, the rented property is in France, the exemption method applies.

For example, we also advise in the area of international employee assignments and help with the examination of the 183-day rule or whether an economic employer is justified.

The advice covers not only “normal” workers, but also the special groups: frontier workers and public sector pensioners.

In the case of the last group, we were able to completely exempt and refund the payroll tax of 40k, which was wrongly paid in Germany, with a professor with pensions recently. The right to tax in this case was in France. Double taxation has been avoided.

We also examine the risks of “unwanted” company establishments.

We have a network of international cooperation partners and can therefore provide unlimited advice.

We look forward to hearing from you!

Do you have a promising business idea and are looking for the right way? We are happy to accompany you on the path of starting a business and support you comprehensively – from the preparation of the business plan to the placement of tailor-made contacts from our network.

Our competences include the tax registration of your company with the tax office, advice on questions of the right legal form in cooperation with our partner lawyers. We accompany you to bank meetings, advise on calculation questions and, if desired, issue safety certificates for submission to KfW and the Federal Employment Agency after the accompanying examination of your business project.

We examine the VAT alternatives of small business owners or “normal entrepreneurs” and explain how the business model is to be assessed for VAT purposes, are there any other specialities?

In a first interview, we already show the client what it means to be an entrepreneur and what tax obligations derive from it (recording obligations, accounting, invoicing,…). Furthermore, we show the typical operating expenses (A-Z) so that the freshly baked entrepreneur also knows what could be deductible.

If you as a client would like to take over the accounting yourself, no problem!

You post and we prepare the annual financial statements together with related tax returns for your business.

On request, we offer training in the field of accounting, in which the entrepreneur is shown how to record business transactions. In doing so, we deal with the various topics such as the bank, customers, vendors and various items in the profit and loss account, as well as the specifics of the respective profit determination. We are of course available for further questions during the accounting process.

The fees for such training and advice are agreed in advance.

Please make an appointment with us.