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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.
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
Experience: 2. Staatsexamen
Dear XXXXX,I would be grateful if you could accept my answer.Best regardsD. Bettingerattorney at law