Glossary
German tax terms, explained in English
The words on your letters from the Finanzamt, translated and explained — what they mean, and what you need to do.
A
AbgabefristFiling deadlineThe deadline for submitting your tax return; it is extended if a tax advisor prepares it.AbgeltungsteuerFlat withholding taxThe flat tax on interest, dividends and capital gains, withheld by German banks and brokers.Anmeldung (Wohnsitzanmeldung)Address registrationRegistering your address at the local citizens' office, which triggers your tax ID.
E
EhegattensplittingJoint assessment / income splittingJoint taxation of married couples, where the combined income is split in half to calculate the tax.EinkommensteuerIncome taxThe progressive tax on your worldwide income if you are tax resident in Germany.EinspruchObjection / appealThe formal, free objection against a tax assessment or other decision, due within one month.ELSTEROnline tax portalThe official online portal of the German tax administration for returns, forms and correspondence.Erbschaftsteuer / SchenkungsteuerInheritance and gift taxTax on inheritances and gifts, with allowances and rates depending on the relationship.EÜR (Einnahmenüberschussrechnung)Cash-basis profit statementThe simplified profit calculation for freelancers and small businesses: income minus expenses.
F
FinanzamtTax officeThe local German tax authority that assesses and collects your income tax, VAT and trade-related taxes.Fragebogen zur steuerlichen ErfassungTax registration questionnaireThe form you file via ELSTER when you start self-employment, so the tax office can register you.FreiberuflerLiberal professional / freelancerSelf-employed professionals in listed or similar occupations who do not pay trade tax.
G
Gewerbe / GewerbeanmeldungTrade / trade registrationCommercial self-employment that must be registered with the local trade office.GewerbesteuerTrade taxA municipal tax on business profits; the rate depends on the city.GmbHLimited liability companyThe most common German corporation, taxed with corporate tax and trade tax.GrunderwerbsteuerProperty transfer taxA one-off tax on buying real estate in Germany; the rate depends on the federal state.GrundfreibetragBasic tax-free allowanceThe part of your annual taxable income on which no income tax is due.GrundsteuerProperty taxAn annual municipal tax on land and buildings, paid by the owner and often passed on to tenants.
K
S
SäumniszuschlagLate payment surchargeA monthly surcharge on tax that is paid after its due date.Solidaritätszuschlag (Soli)Solidarity surchargeA surcharge on income tax, corporate tax and withholding tax; most employees no longer pay it.SonderausgabenSpecial expensesCertain private costs the law allows you to deduct, such as pension and insurance contributions, church tax and donations.SparerpauschbetragSaver's allowanceThe annual tax-free amount for investment income, doubled for married couples.Steuer-ID (Steueridentifikationsnummer)Tax identification numberYour personal, lifelong 11-digit tax ID, issued automatically after you register your address in Germany.SteuerbescheidTax assessment noticeThe official decision from the tax office stating how much tax you owe or get back for a year.SteuererklärungTax returnThe annual declaration of your income to the tax office, usually filed electronically via ELSTER.SteuerklasseTax classOne of six wage tax classes that decide how much income tax your employer withholds each month.SteuernummerTax numberA case number assigned by your local tax office, mainly for people who file tax returns or run a business.
U
Umsatzsteuer (USt / MwSt)VATGerman value added tax charged on most goods and services; businesses collect it and pay it to the tax office.UmsatzsteuervoranmeldungAdvance VAT returnThe monthly or quarterly VAT return businesses file electronically via ELSTER.UmzugskostenRelocation costsMoving costs that can be deductible when the move is job-related, including international moves to Germany.USt-IdNr. (Umsatzsteuer-Identifikationsnummer)VAT identification numberThe German VAT ID starting with DE, used for business with clients and suppliers in other EU countries.
V
VerspätungszuschlagLate filing penaltyA surcharge for filing a mandatory tax return late, charged per month of delay.VorabpauschaleAdvance lump sum (fund taxation)A notional yearly income on accumulating funds and ETFs, taxed even though you sold nothing.VorauszahlungenTax prepaymentsQuarterly advance payments of income tax set by the tax office, typical for freelancers and landlords.
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