Moving to Germany from the US: Tax Checklist for Americans

Moving to Germany is exciting, but the tax implications start before you leave. Germany's high tax rates and complex social security system create unique pre-move planning needs. This checklist covers the key tax steps before, during, and after your move.

Before You Move (3-6 months before)

State Tax Exit

• If you live in California, New York, Virginia, or another aggressive state, plan your exit carefully
• Surrender your driver's license and obtain a new one
• Cancel voter registration
• Sell or rent out property
• Close or minimize bank accounts in your former state
• Consider establishing residency in a no-tax state before moving abroad

FEIE Planning

• Understand the physical presence test (330 days outside the US in a 12-month period)
• Plan your move date to maximize your first-year FEIE
• Keep detailed travel records from day one

Self-Employment Planning

• Understand the Freiberufler vs Gewerbe distinction
• Freiberufler (freelancers in liberal professions) are exempt from trade tax
• Gewerbe (trade businesses) owe Gewerbesteuer (trade tax)
• This classification affects both German and US tax

Totalization Agreement

• The US-Germany totalization agreement prevents double social security taxation
• If you are self-employed in Germany, you must obtain a certificate of coverage
• This exempts you from US self-employment tax

Banking

• Plan for German bank account opening (requires Anmeldung)
• Keep at least one US bank account open
• Understand FBAR reporting requirements

First Year Filing

Partial-Year FEIE

In your first year abroad, you may qualify for partial-year FEIE.

German Tax Residency

You become a German tax resident if you have a domicile (Wohnsitz) or habitual abode (gewöhnlicher Aufenthalt) in Germany. The 183-day test is one factor but not the only one.

FBAR

File FBAR for all foreign accounts, including German accounts, if the aggregate value exceeds $10,000.

Establishing Germany Tax Residency

• Complete Anmeldung (residence registration) within 14 days
• Obtain Steuer-ID (tax ID)
• Open a German bank account
• Register with German social security (if self-employed)
• Obtain health insurance (mandatory)

Common Pre-Move Mistakes

1. Not planning state tax exit — California and New York can follow you abroad for years.
2. Not tracking travel days — You need 330 days outside the US for the physical presence test.
3. Not understanding Freiberufler vs Gewerbe — This classification significantly affects your tax.
4. Not obtaining certificate of coverage — Required for totalization agreement benefits.
5. Not reporting German bank accounts on FBAR — All foreign accounts are reportable.

Timeline Checklist

3 months before:

• Research Freiberufler vs Gewerbe classification
• Plan state tax exit strategy
• Research health insurance options
• Set up travel tracking system

1 month before:

• Surrender state driver's license (if needed)
• Cancel state voter registration
• Document your move
• Obtain certificate of coverage (if self-employed)

First month in Germany:

• Complete Anmeldung
• Obtain Steuer-ID
• Open German bank account
• Register with social security (if self-employed)
• Obtain health insurance

First tax season:

• File US tax return with FEIE/FTC
• File FBAR
• File German tax return (if resident)
• Make quarterly estimated tax payments (if self-employed)

When to Get Professional Help

You should consider professional help before you move, especially if you live in a high-tax state, are self-employed, or have complex income.

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FileAbroad explains U.S. federal tax and U.S. international information-reporting consequences of documented foreign facts. It does not provide foreign-country legal or tax representation, valuation opinions, banking or remittance advice, or advice on what a foreign authority will accept.

Scope statement reviewed 2026-08-30 · FileAbroad product/content owner