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Emigrating with a second residence in Germany: How to avoid tax pitfalls!
The dream of emigrating, but not quite losing connections to your homeland? Many Germans toy with the idea of a second residence. But beware! German registration and tax laws are complex. Find out what you need to pay attention to in order to avoid unwelcome surprises. Need individual advice? Contact us for a personal analysis of your situation.
The topic short and concise
The dream of emigrating, but not quite losing connections to your homeland? Many Germans toy with the idea of a second residence. But beware! German registration and tax laws are complex. Find out what you need to pay attention to in order to avoid unwelcome surprises. Need individual advice? Contact us for a personal analysis of your situation.
The dream of emigrating, but not quite losing connections to your homeland? Many Germans toy with the idea of a second residence. But beware! German registration and tax laws are complex. Find out what you need to pay attention to in order to avoid unwelcome surprises. Need individual advice? Contact us for a personal analysis of your situation.
The dream of emigrating, but not quite losing connections to your homeland? Many Germans toy with the idea of a second residence. But beware! German registration and tax laws are complex. Find out what you need to pay attention to in order to avoid unwelcome surprises. Need individual advice? Contact us for a personal analysis of your situation.
Are you planning to emigrate while maintaining a second residence in Germany? Discover everything about the legal and tax implications and how to optimise them. Get informed now!
Introduction: Emigrating and having a Second Residence in Germany – A Complex Topic
Overview of the Topic
The combination of emigrating and maintaining or establishing a second residence in Germany raises numerous questions. This article sheds light on the legal, tax, and social security aspects that you should definitely consider if you plan to move abroad while keeping a base in Germany. At GoMovin, we understand that this step needs to be well thought out to avoid any unwanted surprises.
Why keep a second residence despite emigration?
There are many reasons why people wish to keep a second residence in Germany despite emigrating. These include maintaining social contacts, access to healthcare, potential benefits for pension entitlements, and, of course, property ownership. A second residence can also serve as a kind of safety net in case the emigration does not go as planned. It is important to carefully consider this decision and weigh all relevant aspects. Choosing the right country for emigration is as crucial as resolving the residence issue.
GoMovin supports you in planning
We at GoMovin are happy to assist you in planning your move and addressing all related questions. From relocation assistance to official procedures, we are at your side with our expertise. Our aim is to make your stay abroad as stress-free as possible. We are also happy to clarify insurance questions for you.
Observe registration requirements: Second residence only with a primary residence in Germany
Legal framework: Notification requirement and residence status
Main residence abroad and secondary residence in Germany
In general, German registration law prohibits the registration of a secondary residence in Germany if the main residence is abroad. According to perspektiveausland.com, the German registration law does not provide for this option. It is important to understand the consequences of holding dual residence, as it can have significant legal and tax implications. While dual residence is possible, it carries risks.
Deregistration when emigrating
German law requires deregistration when permanently moving abroad. Failure to comply can lead to issues, as explained by the Federal Foreign Office on its website explains. For example, not deregistering can result in important documents not reaching you or you remaining liable for church tax. GoMovin assists you with correct deregistration to avoid such problems.
Exceptions and special cases
However, there are exceptions and special cases where a secondary residence in Germany may be possible despite the main residence being abroad. This applies, for example, to cross-border commuters or students. Again, it is advisable to obtain comprehensive information in advance and, if necessary, seek legal advice. The conditions for a successful start abroad should be clarified in advance.
Avoid tax liability: Observe the 183-day rule
Tax Implications: Unlimited and Limited Tax Liability
The 183-Day Rule
A stay of more than 183 days in Germany can result in unlimited tax liability, meaning your entire worldwide income will be taxed in Germany. This is especially important to consider if you plan to stay regularly in Germany. The information from Perspektive Ausland points out that this can represent a significant tax burden. It is therefore advisable to carefully plan your stays in Germany.
Second Residence Tax
The second residence tax is a municipal tax that can range from 5% to 30% of the net cold rent or property value, depending on the municipality. However, there are exceptions, for instance, if the second residence is needed for professional reasons. Check with your municipality for the applicable regulations. GoMovin helps you find the relevant information and take the necessary steps.
Extended Limited Tax Liability
Even after emigration, extended limited tax liability may apply if you still have strong economic ties to Germany. This can occur, for example, if you continue to receive income from Germany or own assets there. Early consultation with a tax advisor is essential in this case. The tax aspects of emigrating to the best countries should not be underestimated.
Secure social insurance: Health, care insurance and pension
Social Security: Health Insurance, Long-term Care Insurance, and Pension
Impact on Health Insurance
German retirees living abroad may be able to remain in their German health insurance, although benefits will be subject to foreign regulations. It's important to contact your health insurance provider early to clarify the exact conditions. Generali Insurance provides important guidance on this matter.
Long-term Care Insurance
Relocating your primary residence abroad could limit your long-term care insurance to basic benefits. This should be factored into your planning, especially if you may rely on care services in later life. GoMovin is happy to advise you on alternative insurance models.
Riester Pension
Moving your primary residence abroad can result in the loss of tax advantages associated with the Riester pension. Consult your provider about the consequences and possible alternatives. The financial aspects of emigrating and living affordably are varied.
Simplifying administrative procedures: Passport, documents, and vehicle registration
Practical Aspects: Administrative Processes and Documents
Passport Matters
The German embassy abroad can only process passport matters if your German residence is deregistered. Otherwise, there may be delays and higher fees. It is therefore advisable to deregister in good time, as highlighted by the German consulate in Windhoek.
Delivery of Documents
If maintaining a German residence, important documents (e.g. court mail) can be delivered to this address, which may lead to missed deadlines. Make sure you have a reliable person who can receive your mail and keep you informed.
Vehicle Registration
Registering a vehicle in Germany requires a German residence. If you plan to take your vehicle with you, this should be considered in your planning. GoMovin supports you with all necessary steps to ensure a smooth move.
Avoiding double taxation: Making use of double taxation agreements
Double Taxation Agreements and Tax Advice
The Importance of Double Taxation Agreements
In countries without Double Taxation Agreements (e.g. Turkey), relocating the primary residence can lead to double taxation. Check in advance if such an agreement exists with your destination country to avoid unwanted tax burdens. Generali Versicherung highlights the importance of these agreements.
Professional Tax Advice
It is advisable to seek advice from a tax consultant about the individual tax implications before emigrating. A tax consultant can help you optimise your tax situation and avoid pitfalls. GoMovin works with experienced tax advisors who are happy to assist you.
Avoid pitfalls: Clarify reporting obligations and residential status
Pitfalls and Solutions: Common Issues and How to Avoid Them
Failure to Comply with Registration Obligations
Failure to comply with registration obligations can lead to fines and other legal consequences. Ensure you deregister on time to avoid issues. Correct adherence to registration obligations is crucial for a smooth start abroad.
Unclear Residence Status
Unclear residence status can lead to problems with authorities and insurance. Clarify your residence status early to avoid misunderstandings and complications. GoMovin supports you in resolving all relevant questions.
Lack of Information
Get comprehensive information on all relevant aspects before you emigrate and maintain or establish a secondary residence in Germany. Good preparation is the key to success. GoMovin provides you with all the information you need to make an informed decision.
Planning is crucial: Seek timely advice
Conclusion: Careful planning is crucial
Summary of the Key Points
The decision for or against a secondary residence in Germany when emigrating should be well considered, taking into account all legal, tax, and social security aspects. Careful planning and professional advice are essential to avoid pitfalls and to ensure your emigration is successful.
Recommendations for Emigrants
We at GoMovin recommend the following:
Timely planning and advice: Start planning early and seek advice from experts.
Clarification of residence status: Clarify your residence status early to avoid issues.
Compliance with registration requirements: Observe the registration requirements and deregister in time.
GoMovin Supports Your New Start
Planning to emigrate and retain a secondary residence in Germany? Discover all about the legal and tax consequences and how to optimise them. We at GoMovin offer comprehensive advice and support for every step of your move. From planning to execution, we provide our expertise. Choosing GoMovin means investing in a stress-free and successful new start abroad.
Now is the perfect time to plan your emigration. Contact us today to start your personalised consultation and realise your move with GoMovin. We look forward to supporting you on your journey!
FAQ: Answers to Frequently Asked Questions about a Second Residence
Frequently Asked Questions
Can I live abroad and have a second residence in Germany?
Generally, it is difficult to register a second residence in Germany if your main residence is abroad. The German registration law usually does not allow this. However, there are exceptions, such as for cross-border commuters or students.
Can I stay registered in Germany and live abroad?
If you move abroad permanently, you are obliged to deregister in Germany. Otherwise, you may encounter issues with authorities and insurers.
Can I have a secondary residence in Germany?
A secondary residence is only possible if you also have a main residence in Germany. If your main residence is abroad, registering a secondary residence in Germany is generally not possible.
How long can a German citizen leave Germany?
There is no time limit on how long you can leave Germany as a German citizen. However, you should consider the tax and social security implications, especially if you maintain a second residence in Germany.
Further useful links
The Auswärtige Amt provides information on the obligation to register when moving abroad.
The German Consulate in Windhoek provides information on how passport matters can be handled abroad.
FAQ
Can I register a secondary residence in Germany as an expatriate?
In principle, registering a secondary residence in Germany is not possible if your primary residence is abroad. German registration law requires a primary residence in Germany. However, there are exceptions, such as for cross-border commuters or students.
What are the tax implications of a secondary residence in Germany when emigrating?
A secondary residence can lead to the secondary residence tax levied by the municipalities. Additionally, a longer stay in Germany (over 183 days) can trigger unrestricted tax liability, meaning your global income is subject to German taxation. GoMovin provides comprehensive advice on these aspects.
How does a secondary residence affect my social security entitlements?
Moving your primary residence abroad can affect your health, care and pension insurance. In particular, the loss of tax benefits with the Riester pension should be considered. GoMovin helps you find the optimal solutions.
Do I have to deregister in Germany when emigrating?
Yes, German law requires deregistration in the event of a permanent move abroad. Otherwise, it can lead to problems with authorities, the delivery of documents, and church tax. GoMovin supports you with the correct deregistration.
What is the 183-day rule and how does it affect me?
The 183-day rule states that a stay of more than 183 days in Germany leads to unrestricted tax liability. Plan your stays carefully to avoid tax disadvantages. GoMovin helps you with planning.
What role do double taxation agreements play when emigrating with a secondary residence?
Double taxation agreements prevent you from having to pay tax on the same income in two countries. Find out whether such an agreement exists with your target country. GoMovin advises you on the relevant agreements.
How can GoMovin assist me in planning my move and residential matters?
GoMovin offers an all-in-one solution for international relocations, including personal advice, legal support, property services, and cultural integration. We assist you with planning, administrative processes, and clarifying all relevant questions.
What happens to my German passport if I emigrate and keep a secondary residence?
The German embassy abroad can only handle passport matters if your German residence is deregistered. Otherwise, there may be delays and higher fees. GoMovin supports you with all necessary steps.
