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Im an American citizen (currently working as a U.S. Federal

 
DirkBettinger's Avatar
  • Answered by:DirkBettinger
  • Rechtsanwalt
  • Positive Feedback: 92.9 %
  • Accepted Answers: 130
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Customer Question

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

 



Already Tried:
Nothing, simply trying to gather information before retiring.

Submitted: 791 days and 13 hours ago.
Category: German Law
Value: 38 €
Status: CLOSED

Accepted Answer

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Expert:  DirkBettinger replied 790 days and 6 hours ago.

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 regards
D. Bettinger
attorney at law

Expert TypeRechtsanwalt
Category: German Law
Pos. Feedback: 92.9 %
Accepts: 130
Answered: 3/17/2011

Experience: 2. Staatsexamen

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Expert:  DirkBettinger replied 789 days and 6 hours ago.

Dear XXXXX,

I would be grateful if you could accept my answer.

Best regards
D. Bettinger
attorney at law

 
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