I am planning to move to Dubai for some years. But,recently I have discovered that any income earned abroad will be subjected to German tax laws !! In the link below , you will find this disturbing news.

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http://www.howtogermany.com/pages/personalfinance.html

If you are a permanent resident you will be taxed on income from Germany and abroad.
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What is the benefit of getting a German citizenship then ? Is this really ethical for
German govt to demand tax on income earned outside Germany ?

if your residence in germnay is 183 days in a annual year ---you are obliged to pay tax for the money which you earned in dubai. there are some exception if its company transfer for doing specified task in dubai.

Tax consultant can help you--

Hi friend082,

Thanks for the feedback. I have searched the net again and found the following.

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http://sachsen.de/en/1452.htm

Foreign earnings / income tax liability abroad

If you have foreign earnings and unlimited liability to income tax in Germany, the earnings will normally be added to your

domestic income for your total tax liability (where relevant after deduction of tax paid overseas). Alternatively, if the earnings are exempt from German taxation under a double taxation agreement, they will only be used to help determine the rate of taxation on the progressive income tax scale (»progression reservation«).

On the other hand, if you have neither limited nor unlimited liability to taxation in Germany, your entire earnings are exempt from German taxation.
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http://www.capitaltaxconsulting.com/international-tax/germany/german-income-tax/

Tax residents in Germany: are liable to pay German tax on their worldwide income.

Non tax residents in Germany: are liable to pay tax on German-source income.

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I think , the real issue is whether you are a tax-resident ( having unlimited tax-liablitiy ) or non-tax resident (limited tax liability ).


If you fulfill one of these two criteria of either a life centered in Germany or a continuous stay of 6 months in a tax-calender year in Germany, you will be considered a tax-resident.

Let us imagine that a German citizen moves to Dubai and stay there more than 183 days every year.He only visits Germany on vacation for one or two months. Is it possible for the clever Finanzamt to consider him a tax-resident by a twisted logic of " life centered in Germany" ?

What precautions a German citizen should take while moving outside Germany ?

Not that I know the answers for your questions but these are complex and serious matters you better consult in person with a tax expert and not with anonymous people on a forum or web searches

Whatever salary you earn, you will be treated as a second class citizen and not entertained by upper classes.

second class citizen.......why?

Hi Chefren,

you are welcome at our forum, but please stop to flood it, with commenting endless old posts!

Detlef

The moderator