International tax law
Foreign-source income: rental income, pensions and investment returns
Financial ties to other countries bring both tax challenges and opportunities. We help you structure your international income in the most tax-efficient way.
International tax law
Financial ties to other countries bring both tax challenges and opportunities. We help you structure your international income in the most tax-efficient way.
Whether rental income, pensions and annuities, or investment portfolios - anyone with financial connections abroad faces particular tax questions. Correct tax treatment requires sound knowledge of double taxation agreements and international tax rules.
We analyse your international income and assets and develop tax-efficient structures. In doing so, we ensure the correct application of double taxation agreements and make full use of all options for avoiding double taxation and reclaiming foreign withholding taxes.
Particularly in the case of foreign rental income, the tax treatment is often surprisingly favourable - foreign letting companies frequently pay only around 15% tax on their income in Germany. For foreign pensions, the key question is which country holds the taxing right. We prepare the documentation required to avoid double taxation.
Your expert
CEO
Tax Consultant, Bachelor of Arts, Expert Adviser for International Taxation, Expert Adviser for Customs and Excise Duties
From rental income to pensions and investment returns - we advise you on all income with a cross-border dimension.
Tax treatment of rental income from foreign properties, progression clause, credit of foreign taxes and valuation of disposal gains across borders.
Clarifying the taxing right for statutory pensions, occupational pensions and civil service pensions from abroad. We apply double taxation agreements and ensure the same pension is not taxed in two countries.
Correct declaration of foreign dividends, interest and disposal gains from overseas portfolios, together with systematic reclaims of excess withholding taxes up to the DTA maximum rate.
In addition to advice on rental income, pensions and investment returns, we offer further specialist services relating to income with a cross-border dimension.
Credit of foreign taxes
Correct crediting of foreign income and withholding taxes against German tax in accordance with DTA provisions and section 34c EStG
Withholding tax reclaims
Systematic reclaims of excess foreign withholding taxes on dividends and interest
Exemption procedures
Applications for exemptions and reductions under double taxation agreements
Asset structuring
Tax-efficient design of international asset structures
Tax returns
Preparation of all required tax returns for domestic and foreign income
English-language advice
Full communication and presentation of findings in English
Answers to the most common questions about rental income, pensions and investment returns with a cross-border dimension.
Your question is not listed? Get in touchRental income from foreign properties is generally taxed in the country where the property is located. In Germany, such income is exempt from German tax under most double taxation agreements, but it does affect the German tax rate applied to your other income through the progression clause. Declaration obligations therefore exist in both countries. We calculate the correct tax burden, coordinate the returns and liaise with local advisers abroad as required.
Which country holds the taxing right over a pension is determined by the relevant double taxation agreement - generally based on the type of benefit (statutory pension, occupational pension, civil service pension, private pension) and the country of residence of the recipient. Some pensions are taxable in the paying country, others exclusively in Germany. We analyse the applicable DTA provisions, apply for exemption or refund abroad and ensure that no double taxation arises.
On dividends, interest and royalties from abroad, the source country often withholds tax in excess of the maximum rate agreed in the double taxation agreement. You can reclaim the excess amount from the source country; the remaining DTA maximum rate is credited by the German tax office against your income tax or capital gains tax. We check the applicable DTA rates, submit the refund applications in the relevant local language and monitor the process through to payment.
Whether rental income, pensions, annuities or investment returns with a cross-border dimension - speak to our international tax specialists.