Taxes in Germany: The Easiest Way to File as an Expat

Filing a tax return (Steuererklärung) in Germany can feel incredibly daunting due to the complex bureaucracy and the German language barrier. However, doing so is highly recommended, as the average refund is over €1,000!

Essential Tax Numbers

Before you can file, you need to understand your tax numbers. You will need these to open a bank account and get paid by your employer.

1. Steuer-ID (Tax Identification Number)

Your Steuer-ID is an 11-digit number assigned to you for life. You will automatically receive this via mail a few weeks after you do your very first Anmeldung.

2. Steuernummer (Tax Registration Number)

Your Steuernummer is a regional tax number. It changes if you move to a different city or change your marital status. If you are a freelancer, you will need this number to issue invoices. You receive it from your local tax office (Finanzamt) after filing your first tax return or explicitly requesting it.

The Easiest Way to File Taxes in Germany

While Germans historically used the official (and notoriously clunky) government software called ELSTER, expats now have much better options.

Use a Tax App (Taxfix or Wundertax)

For most salaried employees, the absolute easiest way to file taxes in Germany is using an app like Taxfix or Wundertax.

• They are fully in English.
• They guide you through a simple Q&A interview format.
• They calculate your estimated refund before you decide to submit.
• They automatically send the filing to the Finanzamt digitally.

When to Hire a Steuerberater

If you are a freelancer, run a business, or have complex international investments, you should hire a Steuerberater (tax consultant). While expensive, their fees are tax-deductible, and they can navigate the incredibly complex German tax code to maximize your returns.