Germany
Individual - Foreign tax relief and tax treaties
Last reviewed - 09 July 2020Foreign tax relief
If a double tax treaty (DTT) exists, double taxation is usually avoided by exempting the foreign income with progression. Foreign income taxes can only be credited against German income tax if a tax credit is provided in the applicable DTT or a DTT does not exist. A tax credit is only possible up to the amount of German income taxes on the specific foreign income.
Tax treaties
German national income tax law has been modified and superseded by various tax treaties with foreign countries to ensure that income is not taxed by more than one country. Germany has concluded DTTs, applicable for income taxes, with nearly 90 countries, amongst them most of the industrialised countries. However, DTTs have not been concluded with Brazil and Hong Kong.
Germany currently has double-taxation agreements with the below mentioned countries:
Albania | Iran | Philippines |
Algeria | Ireland, Republic of | Poland |
Argentina | Israel | Portugal |
Armenia | Italy | Romania |
Australia | Jamaica | Russia |
Austria | Japan | Serbia |
Azerbaijan | Jersey | Singapore |
Bangladesh | Kazakhstan | Slovak Republic |
Belarus | Kenya | Slovenia |
Belgium | Korea, Republic of | South Africa |
Bolivia | Kosovo | Spain |
Bosnia and Herzegovina | Kuwait | Sri Lanka |
Bulgaria | Kyrgyzstan | Sweden |
Canada | Latvia | Switzerland |
China, People's Republic of * | Liberia | Syria |
Cote d'lvoire | Liechtenstein | Taiwan |
Croatia | Lithuania | Tajikistan |
Cyprus | Luxembourg | Thailand |
Czech Republic | Macedonia | Trinidad and Tobago |
Denmark | Malaysia | Tunisia |
Ecuador | Malta | Turkey |
Egypt | Mauritius | Turkmenistan |
Estonia | Mexico | Ukraine |
Finland | Moldova | United Arab Emirates |
France | Mongolia | United Kingdom |
Georgia | Montenegro | United States |
Ghana | Morocco | Uruguay |
Greece | Namibia | Uzbekistan |
Hungary | Netherlands | Venezuela |
Iceland | New Zealand | Vietnam |
India | Norway | Zambia |
Indonesia | Pakistan | Zimbabwe |
* Without Hong Kong and Macau
Estate and gift tax conventions
Estate and gift tax conventions have also been concluded with a number of countries, including the countries listed below:
- Denmark (included in the DTT)
- France
- Greece
- Sweden (included in the DTT)
- Switzerland
- United States
Totalisation agreements
Totalisation agreements (i.e. social security agreements) have also been concluded with a number of countries, including the countries listed below:
- Albania
- Australia
- Bosnia and Herzegovina
- Brazil
- Canada and Quebec
- Chile
- China
- India
- Israel
- Japan
- Korea
- Kosovo
- Macedonia
- Moldova
- Montenegro
- Morocco
- Philippines
- Serbia
- Tunisia
- Turkey
- United States
- Uruguay