Double taxation treaties are designed to avoid double taxation. They help to minimize your tax burden
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Tax avoidance during departure and tax optimization for periods after transfer of residence abroad
Double taxation treaties are designed to avoid double taxation. They help to minimize your tax burden
Foreign tax law deals with tax regulations that affect cross-border activities of companies and individuals.
Inheritance Tax International looks at the tax regulations that must be observed in cross-border inheritance cases.
A transfer of residence abroad can have various tax implications, both for the departure and for the period thereafter. On the one hand, this involves the avoidance of double taxation and, on the other hand, the optimization of tax advantages that may result from the new residence situation.
The exit taxation regulates that certain assets, such as real estate or capital assets, are taxed in Germany in case of a change of residence abroad. Avoidance of double taxation can be achieved through double taxation agreements or by crediting foreign taxes against the German tax liability. Here, it is important to pay close attention to the tax regulations in Germany and abroad in order to minimize tax risks and take advantage of tax benefits.
After the transfer of domicile, there may be tax advantages that can be exploited. These include, for example, choosing the new country of residence, optimizing the tax structure in the company or taking advantage of tax incentives such as tax exemptions or reduced tax rates in the new country of residence.
When taxing income abroad, taxpayers should check whether the new country of residence has a double taxation agreement with the old country of residence and which regulations are contained therein. In this context, it may also be useful to check the tax treatment of certain types of income, such as capital income or rental income, in the new country of residence. Transfer prices play a role in particular in international business relationships and regulate the level of taxation of cross-border transactions between associated companies. In this context, the national regulations of the new country of residence and, if applicable, the regulations of the old country of residence should be observed.
The reporting of capital income abroad is another important point in the regulations of foreign tax law. This involves the reporting of capital income, such as dividends or interest income, to the foreign tax authorities. Here, the national regulations of the new country of residence as well as, if applicable, the regulations of the old country of residence should be observed.
The help of a specialized tax advisor is indispensable, especially when relocating to a foreign country of residence. Since tax regulations differ from country to country, taxpayers can quickly overlook tax risks or fail to make the best use of them. In this regard, a specialized tax advisor can help to take into account the individual tax requirements in Germany and abroad and find an individual solution for the taxpayer. In addition, a specialized tax advisor can also assist with the implementation of tax measures, such as applying for residence certificates or reporting capital income abroad. Individual advice is particularly important here, as each case must be considered individually and there is no blanket solution.