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International Tax

Foreign income in a German tax return

Foreign income is not automatically foreign to the German tax return. If you are German tax resident, the default starting point is worldwide income — then the treaty analysis begins.

Income that is often missed

Common examples are foreign salary, rental income, pensions, dividends, interest, broker gains, partnership income and director fees. Each category can follow a different treaty article.

What to collect

Use annual statements, foreign returns, assessments and proof of tax paid. Convert amounts consistently to euros and keep the exchange-rate method documented.

  • Gross income, not only net payment.
  • Foreign tax withheld and finally assessed.
  • Country, payer and income period.
  • Related expenses and ownership share.

Disclosure and relief are separate

Reporting an item does not mean Germany finally taxes it. The return provides the facts needed to apply exemption, progression or credit relief correctly.

Frequently asked

Do I declare a foreign bank account itself?

Germany generally focuses on income, but separate reporting can arise in particular structures and proceedings.

Do foreign dividends belong in the return?

Usually yes when a German bank has not handled German withholding.

What if I already paid tax abroad?

Provide proof. A treaty or German law may allow exemption or credit, subject to limits.

This guide is general information on German tax law, not advice on your individual case. Rules and figures change with each tax year.

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