Current developments

Find out which offices you need to inform when moving away from Germany.

Abandonment of residence in Germany 

In Germany, residence is deemed to be abandoned in particular when the taxpayer gives up his or her home, for example by letting  the apartment he or she lived in for a longer term or selling it or terminating the lease contract for the apartment he or she lived in.

Deregistering from the residents' registration office 

While registering with and deregistering from the residents' registration office as such has no direct effect on taxation, the deregistration can be seen as an indication that the taxpayer indeed gave up his or her residence. We recommend obtaining the so-called deregistration certificate from the residents' registration office. 

Deregistering from banks in Germany as a non-resident taxpayer

If the taxpayer gives up his or her residence in Germany, he or she must inform his or her bank in Germany of this fact and register as a non-resident taxpayer, for example, to be able to make use of the exemption from capital gains tax (withholding tax). In this case, it is usually necessary to provide the bank with the above-mentioned deregistration certificate obtained from the residents' registration office.

Notification of the family assistance office and/or parental allowance paying agency 

The question whether the taxpayer giving up his or her residence is still entitled to child benefit or parental allowance in Germany depends on various factors and should be checked on a case-by-case basis. We always recommend consulting a professional in this respect. Nevertheless, the competent authority should be informed of the planned change of residence in any case.

Notification of the insurance companies 

We recommend that you inform/cancel your private insurance and/or inform them of your new address abroad. This concerns for example: accident, home contents, legal expenses, liability insurance, Riester pension, etc.  The sickness funds should also be informed.

Personal income tax liability in Germany

Anyone who moves abroad in the middle of the year is obliged to submit for the so-called "transfer year” a tax return for taxpayers with unlimited tax liability. It is therefore advisable to keep the documents required for preparing the tax return in a safe place. It is also advisable to check whether there is an obligation to pay tax in Germany in subsequent years (e.g. on the grounds of generating domestic income in Germany). ​

As of 1 January 2025, all applications for an A1 certificate must be submitted electronically (Section 106 SGB IV). It is no longer possible to submit applications in paper form or by fax. Both employers based in Germany and abroad and employees themselves can apply for an A1 certificate. The application must be submitted either via the SV registration portal or via the payroll accounting programme. 

The introduction of the electronic procedure has considerably changed the application process making it more complex. The list of questions to be answered in the application process has been expanded, making applying for the A1 certificate a challenge for many. It is not uncommon that applicants unknowingly make false statements in the application because it is not easy for a layperson not versed with law to keep track of things. Missing or incorrect information can lead to delays or even rejection of the application. Applicants should therefore have a good knowledge of the requirements to avoid mistakes. As the list of questions is now longer and there are no aids available to help the applicant complete the form, the process is more time-consuming.

The switch to exclusively electronic applications for the A1 certificate therefore brings both advantages and challenges. While digitisation could make the processing of applications more efficient in the long term, the new rule initially requires greater care and more time for completing the application. Employers and employees should therefore familiarise themselves with the new procedure early on to avoid delays. Before submitting an application, the facts of the underlying case should always be legally checked, only then is it possible to complete the application correctly. We will be happy to assist you with reviewing the social security aspects of cross-border cases as well as with applying for A1 certificates. ​

Expenses incurred by the taxpayer for a second educational programme (vocational training or studies) are usually treated as a job expense and can generally be deducted as income-related expenses (if necessary, as costs incurred prior to employment). At the same time, it should be noted that in accordance with Section 9 para. 4 sentence 8, half-sentence 1 of the German Income Tax Act (EStG), if full-time education courses / full-time studies are attended outside an employment relationship, the educational institution is considered to be the first place of work, which means that the costs of travelling there may be accounted for only based on the commuting allowance and not according to the principles governing travel expenses. 

In its judgment of 24 October 2024, file no. VI R 7/22, the Federal Fiscal Court (BFH) decided that the distinction between full-time and part-time study is based solely on the amount of time spent studying and does not depend on whether the student is gainfully or otherwise employed alongside their studies. A study course is considered full-time within the meaning of Section 9 para. 4 sentence 8 EStG if the study programme requires the student's full time and engagement to complete it (comparable to a full-time employee). 

In the ruled case, the plaintiff was not employed and had enrolled as a part-time student for a further degree programme after completing his studies at the distance-learning University of Hagen. In his income tax return, he deducted income-related expenses for travelling from his home to the university for 29 return journeys according to the principles governing travel expenses (0.30 euro per kilometre driven), which the BFH recognised. ​