Germany
Germany is the EU's largest economy, offering an excellent infrastructure, a clear path to permanent residency for skilled professionals, and strong worker protections.
Tax Guide for Expats in Germany (2026)
Expats living in Germany are subject to a progressive income tax system, with tax rates ranging from 0% to 45% depending on their income level. The tax year is the calendar year, and tax returns must be filed by July 31st of the following year, or February 28th of the year after that if using a tax consultant. Germany also has a standard VAT rate of 19% on most goods and services.
Income Tax Brackets 2026
| Income from | Income to | Tax rate | Notes |
|---|---|---|---|
| 0 € | 11,784 € | 0% | 0% (basic allowance / Grundfreibetrag) |
| 11,784 € | 17,005 € | 14–24% | 14% – 24% (progressive) |
| 17,005 € | 66,760 € | 24–42% | 24% – 42% (progressive) |
| 66,760 € | 277,825 € | 42% | 42% |
| 277,826 € | No limit | 45% | 45% (Reichensteuer) |
⚠️ Additional charge: 5.5% on income tax liability; only applies above €18,130 annual income tax (approx. €75,000 gross salary)
VAT rates
19%
Standard VAT
0%
Exports / intra-EU
Freelancer tax registration
Freelancers must register at the local Finanzamt within 4 weeks of starting activity. Submit Fragebogen zur steuerlichen Erfassung via ELSTER. If turnover < €22,000/year you may opt for Kleinunternehmerregelung (no VAT charged).