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4.8  of 1000+ reviews by Trustpilot   ✔ Tax returns for both US and abroad
4.8  of 1000+ reviews by Trustpilot   ✔ Tax returns for both US and abroad
4.8  of 1000+ reviews by Trustpilot   ✔ Tax returns for both US and abroad
4.8  of 1000+ reviews by Trustpilot   ✔ Tax returns for both US and abroad
4.8  of 1000+ reviews by Trustpilot   ✔ Tax returns for both US and abroad
4.8  of 1000+ reviews by Trustpilot   ✔ Tax returns for both US and abroad
4.8  of 1000+ reviews by Trustpilot   ✔ Tax returns for both US and abroad
4.8  of 1000+ reviews by Trustpilot   ✔ Tax returns for both US and abroad
US expat Germany

Navigating US Expat Taxes in Germany with Expats Overseas

By May 27th, 2024No Comments5 min read
Simplify US expat taxes Germany with our guide. Donnie and Aubrey share insights and tips to make tax filing easier for American expats.

Managing US taxes as an expat can be overwhelming. We are Donnie and Aubrey, two adventurous Americans living in Germany, here to simplify the process. In this article, we share insights into expat taxes and highlight our trusted partner, Expats Overseas, to help you navigate this complex journey.

Germany often gets a bad reputation for its bureaucratic processes, but after five years of living here, we’ve learned that some aspects of life in Germany are actually simpler than in the US. 

We are Donnie and Aubrey, two people who love to travel, seek adventure, and take advantage of this one life we get. After quitting our jobs, selling everything we had, and traveling the world for nearly a year, we sought the next great adventure for us. We relocated to Germany to experience life in a new country and culture. While we’ve previously described the insane bureaucratic nonsense we encounter in Germany, today we want to talk about a different kind of bureaucratic headache: US expat taxes.

The Challenge of US Expat Taxes Germany

As American citizens living abroad, we are required to pay taxes to the US government, even if we don’t live or work there. This unique system, known as citizenship-based taxation, is only shared by the US and Eritrea. Unlike most countries that use a territorial or resident-based taxation system, the US taxes its citizens regardless of where they live. 

In Germany, for instance, the 183-day rule applies, meaning if you live in Germany for less than 183 days a year and work for a non-German employer, you don’t have to pay German taxes. However, as Americans, we still need to file US tax returns and potentially pay taxes on our global income.

Navigating the Complexities

The complexities of US expat taxes don’t end there. Various credits and exclusions, like the Foreign Earned Income Exclusion (FEIE), allow you to exclude a portion of your foreign-earned income from US taxes—up to $120,000 for 2023. However, not all types of income qualify for this exclusion. Passive income, for instance, does not count. Moreover, regardless of your income, you must still file a tax return each year to report your earnings.

Additionally, if you have foreign bank accounts that exceed $10,000 at any point during the year, you must file a Foreign Bank Account Reporting (FBAR) form. The sheer volume of paperwork and legalese involved can be overwhelming, making professional help almost a necessity.

The Solution: Expats Overseas

This is where Expats Overseas comes in. Expats Overseas specializes in helping American expats navigate the daunting process of filing US and local taxes. They have assisted over 18,500 Americans with their US tax returns, earning stellar reviews on Trustpilot. Their human support team is quick to answer any questions, and they boast an average turnaround time of just two weeks after submitting all necessary documents.

Expats Overseas offers an easy-to-use digital tax organizer to simplify the submission of your information. They can file returns for both the US and your resident country, eliminating the need to manage two separate tax filings. This service is invaluable for expats who may not have had any reason to learn about these complex tax laws before moving abroad.

For more information or to get a personal intake form and a free tailored quote, you can visit their website linked in the description.

Watch our full video on US expat taxes Germany and Expats Overseas here:

Other Comparisons: Germany vs. US

Besides taxes, life in Germany has revealed other interesting comparisons with the US. For example, while Germany is often criticized for being digitally behind—still relying on cash and snail mail for many processes—when it comes to rent payments, Germany is ahead. Unlike in the US, where many people still pay rent with physical checks, in Germany, direct bank transfers are the norm, making the process simpler and more efficient.

Additionally, Germany’s healthcare system, with its lack of co-pays for general physician visits and straightforward billing, is far less complicated than the US system. In Germany, you see the doctor and leave, with insurance covering almost everything. In contrast, the US system often involves multiple bills and co-pays, even after insurance coverage.

Final Thoughts US Expat Taxes Germany

Living in Germany has its challenges, especially when dealing with US expat taxes. However, with services like Expats Overseas, navigating these challenges becomes much more manageable. Their expertise in handling both US and local tax returns can save you time and reduce stress, allowing you to focus on enjoying your life abroad.

If you’re an American living abroad and need help with your taxes, consider reaching out to Expats Overseas. Their support and efficient processes could make all the difference in ensuring you remain compliant without the hassle.

Experts in US Expat Taxes

Our company, Expats Overseas is founded by American expats, and has a deep understanding of how to accurately apply the tax treaty and tax credits.

We offer an easy-to-use tax organizer for submitting your information in one go, competitive pricing, and a fast turnaround time of just four weeks after receiving all needed information and documents. 

We place a high value on personal service, ensuring accessibility and responsiveness. With over 1,000 reviews, we have assisted more than 18,000 individuals with their tax needs and proudly maintain a 4.8-star rating on Trustpilot. Contact us free of charge and without any obligation

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