Berlin at a Glance

Expat Info Berlin: Residency and Taxation

The Berlin S-Bahn takes thousands of commuters to work every day.

Will you soon be working in Berlin as an expatriate? Good choice! The city offers many opportunities, from global companies to middle-sized business or start-ups. Our InterNations guide to working in Berlin explains business etiquette, visa regulations, and admin issues for expats working in Berlin.

Residence Permit

Only non-EU citizens need to apply for a residence permit (Aufenthaltserlaubnis). In order to apply you need a valid passport, proof that you are able to support yourself (i.e. a bank statement or an employment contract), and your current place of residence in Berlin. People who are moving to Berlin with their entire families only need one person to apply for this. Once residence is allowed, each family member will receive the appropriate stamp in their passport.

There are two types of residency permits that may be obtained: limited and unlimited. As their names suggest, one is valid for an infinite time and need not be renewed, while the other is to be renewed based on the date given by the stamp. Government officials only rarely deny residence permits for Germany since non-EU nationals need a successful visa application for coming to Berlin anyway.

Local Registration

Once you have received your employment visa and come to Berlin, you must register your place of residence in Germany and get what is called a Meldeschein. This also applies to EU citizens and even German citizens. You will also have to reregister every time you move within Germany.

To complete this registration you simply need to take your passport and your rental contract or sale agreement with the address on it to the local Registry Office (Einwohnermeldeamt). Once you settle down in Berlin, you will notice that this office becomes crucial concerning things such as driver’s licenses and license plates, income tax cards, German identification cards, and so on.

Income Tax

Taxation of an individual’s income tax is progressive in Germany, meaning the higher the income, the more taxes are taken. Both employed and self-employed persons are liable for filing a tax return, and you will only pay taxes on income earned in Germany.

In order to avoid double taxation, Germany has reached tax agreements with around 90 other countries, for example with the United States and the United Kingdom. As each country’s double taxation treaty differs, it is easiest if you check with your local tax office to find out whether or not you are exempt from taxes in your country of origin while working in Berlin.

Regardless of whether your native country has such an agreement with Germany or not, you need to register at your local Finanzamt (tax office) in order to pay your income tax. Once you have found a job in Berlin, you have to give your new employer your income tax card, which you can get at the Einwohnermeldeamt (see above). The taxes will then be automatically taken out of your gross wages upon payment.

For self-employed expats, the process is somewhat more complicated. In this case, we definitely recommend seeking advice from a tax consultant, especially one with experience concerning international taxation issues.