Moving to Germany From the US: Tax Guide for Americans

2026-07-09

Last reviewed: July 9, 2026. This article reflects current IRS rules and EA exam requirements as of this date.

Moving to Germany means your tax life gets more complicated, not less. The US taxes citizens on worldwide income regardless of where they live. Germany taxes residents on their income. The overlap creates dual filing obligations that require coordination.

This guide covers the initial tax steps — what to do when you arrive, before you file your first Germany return.

Before You Move

Get your US filing in order. If you have unfiled US returns, address them before you leave. The Streamlined Filing Compliance Procedures let you catch up without penalties, but it's easier to complete from the US with access to your records. Once you're abroad, gathering documents becomes harder.

Understand the Foreign Earned Income Exclusion. For the 2025 tax year, you can exclude up to $130,000 of foreign-earned income from US tax. You qualify under the bona fide residence test (you're a bona fide resident of Germany for an entire tax year) or the physical presence test (330 days outside the US in a 12-month period).

Understand the Foreign Tax Credit alternative. The FTC on Form 1116 credits Germany taxes against your US tax liability. In some countries with high tax rates, the FTC eliminates US tax entirely and generates excess credits for carryforward. In others with low rates, the FEIE is the better election.

When You Arrive

Complete the Anmeldung — registration of residence at the local Bürgeramt within 14 days of arrival. This triggers tax residency.
Obtain a tax ID (Steueridentifikationsnummer) — automatically issued after Anmeldung.
Understand your tax class (Steuerklasse) — determines your withholding rate. Married couples can choose class III/V or IV/IV.
Determine church tax status — if you're registered as Catholic or Protestant, 8-9% of your income tax goes to the church. You can opt out by formally leaving the church.
Enroll in statutory health insurance (Gesetzliche Krankenversicherung) — mandatory for employees earning under €69,300 (2025).

Your US Filing Obligations

You'll continue filing Form 1040 with the IRS every year. Your filing deadline is April 15 with an automatic two-month extension to June 15 for Americans living abroad. An additional extension to October 15 is available on request.

You'll file FBAR (FinCEN Form 114) if your foreign account balances exceed $10,000 in aggregate. This is separate from your tax return and filed electronically through the BSA E-Filing System by April 15 with an automatic extension to October 15.

You may need to file Form 8938 (FATCA reporting) if your foreign financial assets exceed higher thresholds ($200,000 for single filers living abroad, $400,000 for joint filers).

The EA You'll Need

A domestic preparer who's never handled an expat return will miss things. Find an EA or CPA who files Germany expat returns regularly. Ask them: How many Germany returns did you file last year? Are you familiar with the US-Germany tax treaty? What's your approach to the FEIE vs FTC election for someone in my situation?

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