by Ciara Gillan
Updated on October 16, 2024
How to: a guide to file your tax return in Germany
Like most countries, dealing with your tax in Germany is a bit of a headache. Add in the complication of not speaking the language and you will find yourself wanting to run from it. As we move closer to the deadline of 31st July, you may be asking yourself if you need to file a tax return and if so, how do you go about it? Well, we’re here to help.
It depends on your tax situation. For all freelancers and self-employed people it is mandatory. If you’re an employee and your situation is one of the below, then it is also mandatory that you file a tax return.
For employees who are single (i.e. no children) then it is not mandatory. However, it may be in your interest to file a tax return as you can claim money back for a variety of unexpected things, such as:
If you are a freelancer (freiberuflich) or self employed and you run your own business, then it is mandatory that you submit a yearly tax return. Thankfully you have until the 31st July of the following year to submit it. So if you came to Berlin in 2019 and were registered for tax, you need to file your tax return by 31st July 2020.
But do not panic. If it is your first year here, and your first time filing a tax return in Germany, then we recommend getting the help of a tax accountant (Steuerberater). Although this can be costly, as Steuerberaters are trained and experienced in their trade, it will provide you with a three month extension on your filing date.
Of course if you’re feeling tax savvy and brave, you could file your return yourself. The submission is now all online through a system called Elster.
As mentioned above, if you’re not feeling comfortable tackling the German system and you perhaps have a complex situation – maybe you received income from abroad – then the advice would be to avail of the services of a Steuerberater.
If you don’t know where to start looking for an accountant, then check out Ageras. This handy site will – in English – connect you with an accountant that matches your needs. It’s free to sign up and apparently, the recommendations are not binding. So no harm in looking and seeing if there’s someone there you want to work with.
If you’re still a little weary of the German system, but can’t afford a tax advisor, then there are two online systems you could try.
The first, and one of the most popular for expats in Germany is Wundertax. Their website is incredibly easy to use and explains everything in detail in English or German. Wundertax also runs tailor-made tax platforms for professions like soldiers, police officers, firefighters, apprentices and students. Wundertax users get an average of €1,150 tax back.
The second is SteuerGo. At a very affordable rate of €35, it will guide you by the hand through each step of filing your tax. Unfortunately it is not equipped to handle interational payments received, so if your income was a mix of German and foreign payments, this platform is not for you.
The third platform, Smart Steuer, however, does deal with a mix of payments. Unfortunately the platform is in German, so you may need a translator to help you out. German tax language is perhaps not the most straightforward.
Thankfully Germany has reached the modern ages and all of this can be done online. The system is called ELSTER (Elektronische Steuererklärung). Do note that you need to register in advance and it can take a few days for them to send you your password by post. So don’t leave it until the last minute.
You can of course file your papers manually, however, the German Ministry of Finance (Bundesministerium der Finanzen) will be removing this option after 2022. You can download the forms directly from their website. On the right you will see “Einkommensteuer – relevant year – mit allen Anlagen”. Click on that for all the relevant forms.
Submitting with ELSTER or on your own can be straightforward, if you know what you’re doing. Thankfully the fantastic ToyTown Germany website has written out a very detailed guide in how to fill out your forms. It may seem a little overwhelming at first glance but this step by step guide is so concise and detailed that it will really help you through it all.
The number of forms you’re required to fill in depends on your tax situation. Here are the most common ones for Germany.
As a regular employee, you will need the following three forms:
For self-employed people, there are forms to be filled in depending on whether you are:
And then, just when you thought it was manageable, there are a whole lot of other common forms that you may need to fill in. Such as:
There are many other forms but these are just some of the most common ones. Again if your situation is a little complex and it is your first time filing a tax return in Germany, it is a good idea to speak to a tax advisor first. You could even ask a lot of questions, take good notes and then if your situation is the same next year, you’ll be able to file it yourself!
While it may no longer be required to submit proof of your expenses (ie. receipts), as a freelancer it is advised to keep them for at least 10 years as the tax office (das Finanzamt) can request an audit (eine Betriebsprüfung) at any time.
If you file completely online through ELSTER, you will need a digital signature to sign the forms. You can find a good step by step guide here. Of course, you can submit your returns semi-electronically, meaning you print out the signature pages, sign them manually and then send them in by post.
