Do expats need to file a German tax return?

In Germany, employees on a single salary in tax class 1 with no significant other income are often not required to file a tax return at all. They can file voluntarily — and a lot of expats really should, because the German system is friendlier to expat-typical expenses than people expect.

Voluntary filings typically pay off when you have deductible expenses such as moving costs to Germany, double-household expenses (doppelte Haushaltsführung), commuting, work-related equipment, further education, or charitable donations. The first year in Germany is often particularly worthwhile because relocation costs alone can be significant.

Mandatory filing kicks in for several situations that are common for expats: tax classes 3/5 or 4-with-factor, multiple employers in the same year, Elterngeld or short-time work above certain thresholds, foreign income, rental income, self-employment, or capital income that has not been fully taxed at source.

The return is filed with your local Finanzamt, typically through the official online portal ELSTER or via a tax advisor (Steuerberater). Deadlines differ depending on which route you take — self-filers face an earlier deadline than people filing through a Steuerberater.

For your first German tax return — especially if relocation costs and double-household expenses are involved — a Steuerberater often pays for themselves through correctly claimed deductions you might otherwise miss.