How to do taxes in Germany

Hi there,

I am likely to use a local accountant that speaks English to do my taxes here in Germany before I leave. I am declared as a factual resident in Canada. I rent a flat that I own in Canada while I have been here (1 year) and have a property manger mange it for me. Do I declare the rental income when I do my German taxes or when I do my Canadian taxes?

Any help is much appreciate. Thanks!

Lisa

Putting the issue of german taxes aside, how can one who is living in Germany, and rents out their former home in canada be declared factual resident of canada.

By both CRA regulations, and moreimportantly, by German_canada tax treaty, you are non-resident of canada, and resident of Germany for tax purposes.

You mast have made some mistake when informing CRA of your situation. I cannot imagine any ties you have in Canada that woulsd make you continue to be taxable there on world income.

Thanks for your reply. Sorry I neglected some details that would help.

Actually I am only here for only one year for a work and travel visa. All my ties are with canada from having my own flat, bank accounts, credit cards, health insurance, etc. I only rent my flat as I am away for the year hence my declaration as a facutual resident. I will be heading home in November after the visa ends.

With that being said, I am still unsure if I need to declare the my rental income in Canada when I do my German taxes.

Thanks for all the help. I greatly appreciate it.

That clears up your Cdn taxes. You *could* take the position that you have left (even for such a short duration), but since you won't be away for a full calendar year, there isn't much point.

For canada, You will report all income from everywhere on a cdn/prov return, as if you never left.

I'm sorry, but I can't help you on german tax rules, I'm a US tax expert. You would need to first determine if you are considered german resident. If you are not, then only German income would be reportable (perhaps on a nspecial return). If you are, determine if foreign income is taxable and there may be special consideration in the first and last year of 'residence'.

As you say, your local acct will handle your german taxes, sos should be familiar with the rules.

Thanks for your help. I talked to a couple of people about it and they agreed with you in terms of filing the german taxes with germany and anything dealing with Canada will be with the Canadian taxes which is much simplier. If I was a permanent resident for Germany, I would have to declare the rental income I believe with my German taxes.

Greatly appreciate your help! Have a good one!

I doubt that you are a permanent German resident but I could be wrong. I have lived here almost 3 years and I only have a "Aufenthalterlaubnis" which is a visa saying that you are "allowed" to live in German for a certain time period ( 1 to 3 years) and is renewable. A permanent residency visa is a "Niederlassungserlaubnis" which can only be given after the min 3 plus years of "Aufenthalterlaubnis" visa expires. However I did read that if you have a bank here and your kids are going to school here than this is your permanent residency. Ask someone at the "Auslanderamt".