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-free allowance is 11,784 euros, and tax rates increase progressively from 14% to 45% as income exceeds certain thresholds. Expats must file their tax returns by July 31st of the following year, or February 28th of the year after that if using a tax consultant.
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).