Germany Expat Tax Guide 2025
FEIE, Foreign Tax Credits, banking, visa options & filing strategies for US expats in Germany.
How Germany Taxes Work
Germany's tax system: Worldwide income; progressive rates 14–45% plus solidarity surcharge.
FEIE vs Foreign Tax Credit
FTC is better than FEIE — German rates exceed FEIE benefit. Totalization agreement is critical for SE tax savings.
The FEIE allows you to exclude up to $130,000 of foreign earned income from US taxation in 2025.
Social Security & Self-Employment Tax
Germany has a totalization agreement with the US. This prevents double Social Security taxation.
Banking for US Expats
N26, Deutsche Bank, and Commerzbank accept US expats.
Visa Options
Freelance visa (Freiberufler), EU Blue Card, or self-employment visa.
Cost of Living
Moderate to high — $2,500–$4,000/month in Berlin/Munich.
Frequently Asked Questions
Do US expats in Germany need to file US taxes?
Yes. US citizens must file regardless of where they live. The FEIE can exclude up to $130,000.
Should I use FEIE or FTC?
FTC is better than FEIE — German rates exceed FEIE benefit. Totalization agreement is critical for SE tax savings.
What is the cost of living?
Moderate to high — $2,500–$4,000/month in Berlin/Munich.
Compare FEIE vs FTC vs Combined strategies for Germany.
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