I'm an American citizen (currently working as a U.S. Federal employee under the SOFA agreement here in Germany) who plans to retire from the U.S. Government and reside here in Germany. 1) My wife is a German citizen with a Green Card and is currently receiving American Social Security; she will give up her Green Card upon my retirement. 2) We own the aprartment in which we currently live. 3) I will not work here in Germany after my retirement nor will my wife. 4) We have investments here in Germany and have paid German taxes on them since acquiring them.Questions: 1. Will the German system tax my wife and me on our combined income, or can we be taxed separately? 2. Will my wife and I have to pay German taxes on our U.S. retirements if we reside here in Germany? 3. Is there a tax difference between Social Security and Employer Pensions (i.e., are they treated differently for tax purposes)?Thanks,Steve
Nothing, simply trying to gather information before retiring.
Dear XXXXX,thank you for your question.I hope I can help you.Question 1:You are allowed to choose whether you are taxed seperately or combined. In most cases to be taxed combined is the better choose.Question 2:As you live in Germany you will have to pay german taxes, yes.Question 3:No, there is no difference, inn both cases you have to pay income tax.Social security (Rente, Pension) is handled as income.I hope I could answer your questions,Kind regardsD. Bettingerattorney at law
Dear XXXXX,I would be grateful if you could accept my answer.Best regardsD. Bettingerattorney at law
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