Who we typically advise in Frankfurt
- Banking, consulting and legal professionals with large variable compensation.
- Assignees on secondment whose employer covers part of the tax (tax equalisation).
- People who are tax resident in Germany but hold accounts and investments abroad.
- Commuters living in Germany and working elsewhere, or the reverse.
Bonuses, deferrals and where they are taxed
A bonus is taxed in the country where the work that earned it was performed — not necessarily where you live when it is paid. For deferred awards spanning a relocation, the amount has to be split over the earning period. Payroll almost never does this correctly on its own.
Withholding on a one-off bonus also tends to overshoot, because payroll projects it across the year. That money comes back through the tax return, but only if the return is filed.
Foreign accounts and reporting duties
As a German tax resident you declare worldwide income, including interest, dividends and capital gains from accounts abroad. Foreign banks report to Germany automatically under the common reporting standard, so mismatches surface. Voluntary correction is possible and far less painful than a discovered omission.
How we work with Frankfurt clients
All advice in English, by scheduled video call. Documents go through an encrypted portal, filings are electronic, and we tell you in advance what the engagement costs.
General information on German tax law, not advice on your individual case. What applies to you depends on your contract, your residence status and the treaty with your home country.