Taxes

As a general rule, you will be required to pay German taxes if you live and work here for more than six months. The tax due is deducted from your salary immediately and transferred to the tax authorities by your employer as income tax (“Lohnsteuer”). The rate of income tax will depend on how much you earn, whether you have any dependents, and which tax class applies to you.  

Germany has dual taxation agreements in place with many countries to ensure that you are not required also to pay tax in your home country. Some of these agreements also determine how you are taxed as a researcher. The HR department or local tax authority will know which regulation applies to you.  

At the end of each calendar year, you may file an income tax return (“Einkommensteuererklärung”) with the local tax office (“Finanzamt”) to have your level of paid income tax assessed. This may entitle you to a partial reimbursement of taxes paid. The necessary documents can be obtained from the local tax office or online through the tax authority’s website “ELSTER”. It is often worth paying a tax accountant to help you complete your tax return.  

Good to know: Church Tax  

In Germany, churches (Protestant, Catholic, Jewish) can collect taxes from their members. This is called the Church Tax (“Kirchensteuer”), and is withheld monthly along with your income tax payments. In Baden-Württemberg, the Church Tax is 8% of the income tax you pay per month. It is collected the same way as regular income taxes and channeled through the tax authorities to the respective religious denominations.  

When you move to Germany, you are required to register with the local citizens’ center (“Bürgeramt”). During this process, you will be asked to declare your religious status. If you do not wish to pay German Church Tax, then you should not declare any religious denomination. If you do so, there is also an option to reverse this decision and “leave” the church (“Kirchenaustritt”), again through the citizens’ center. If you are not a registered church member, however, you will not have access to certain sacraments in a German church, such as getting married, baptizing a child, or having a religious funeral. Other restrictions include the possibility to participate in confirmation, work in the church, its schools or hospitals, as well as becoming a godparent or taking part in parish activities in Germany.