Guide to US Expat Taxes For Americans Living in Germany

So, you’ve traded your American routine for life in Germany, from Oktoberfest steins and fresh pretzels to beer that’s practically an art form. You may feel at home, but if you’re still a US citizen, one thing hasn’t changed: your relationship with the IRS.

Moving abroad doesn’t end your US tax obligations. The IRS expects Americans to file a federal tax return every year, no matter where they live. The difference now is that you may also have German tax obligations, and the two systems don’t always fit together neatly.

To help you stay compliant and avoid double taxation, we’ve put together this guide on what US expats in Germany need to know about their taxes.

Who Needs to File US Expat Taxes from Germany?

Are you a US citizen? Or do you hold a Green Card? If you answered yes to either, you may need to file American expat taxes from Germany every year.

Here’s the bottom line: the IRS requires all US citizens and Green Card holders to file a tax return once their income rises above the annual minimum threshold. It doesn’t matter where you live; earning above the threshold means you still have to file.

For 2024 (filing in 2025), the Minimum Income Thresholds Are:

Single	$14,600
Married Filing Jointly	$29,200
Married Filing Separately	$5
Head of Household	$21,900
Qualifying Widow(er)	$29,200
Self-Employed*	$400

Anyone whose 2024 income met or exceeded the Income filing threshold must file a US tax return in 2025. If you are filing as married filing separately, that means if you made just $5 of income in 2024, you would need to file!

We’ve got a lot more information about tax-filing thresholds for American expats in Germany and worldwide. 

IRS Deadlines for US Expat Taxes in Germany

Expats living in Germany need to be aware of American tax return deadlines abroad. Unlike our friends and family back home, who only need to remember the April 15th deadline, expats may want to be aware of a few more deadlines.

April 15	Traditional Tax Filing Deadline. Expats who need to pay US Taxes should file by this date.
June 15	Automatic extended deadline for Americans Abroad. Expats can file by June 15th without having to request an extension. It’s automatic.
Oct 15	Additional Extension Deadline. Anyone who still needs more time can request an additional extension. Request the extension for free before June 15th.
Dec 15	Last Extension Deadline. Do you need a lot of time to file? You can write to the IRS and request an even later deadline. You’ll have to give a good reason and need to file by then. There are no further extensions! Everything after December 15th is officially late.

Note: If any deadline falls on a weekend or holiday, that deadline, as well as the corresponding extensions, are pushed forward. A good example of this was in 2025 with the June 15th deadline. This deadline fell on a Sunday, so the offical filing date was June 16th

Never Filed Abroad? Get Caught up From Germany

If you hold US citizenship, you probably need to file US taxes each year, even if you live in Germany. For American expats who moved to Germany from the United States, filing a tax return is nothing new. But it may be news to you that you still have to file, even when you move abroad.

If you’re a US citizen who has never lived in the United States, you may be an “Accidental American,” you may be surprised to learn about your tax filing burden. If this is the first time you have learned about your duty to file a US tax return, don’t worry. We can help! 

The Streamlined Filing Compliance Procedures

Anyone outside the US who didn’t know they needed to file US taxes can use The Streamlined Procedure to catch up. This includes Accidental Americans and Americans who moved abroad later in life.

The IRS created the Streamlined Procedure to provide amnesty for anyone who didn’t know they needed to file a US tax return. Americans who use the Streamlined Procedure catch up by filing a limited number of past tax returns and FBARs—all without penalty from the IRS. 

The key is to use the Streamlined Procedure before the IRS catches up with you. Otherwise, you won’t be eligible for the program and could face hefty fines.

Why does the IRS offer this program? The program makes it easier for the IRS to bring non-compliant taxpayers back into the system. Instead of chasing down Americans who genuinely didn’t realize they had to file, the IRS encourages them to come forward voluntarily, report their income and foreign assets, and get caught up without facing harsh penalties.

MyExpatTaxes offers the most affordable Streamlined Procedure, which includes all the necessary tax returns and FBARs required, and a Tax Professional to support you and sign off on your submission.

Filing US Taxes for Your Family Abroad 

Now that you know IF you need to file US income taxes based on the minimum income threshold, you also need to understand which filing status you should use. 

Should you file jointly or separately from your spouse? Are you married and living in the US? You probably file jointly because you’ll typically get the best tax breaks. But what about when you are married and living in Germany? How should you file, then?

To answer this question, ask another question: Is your spouse a US citizen? 

Is your Spouse a US citizen or a Green Card holder? Since you both must report your foreign income and assets, the best option is probably married filing jointly. In the eyes of the IRS, there is little difference in where you live as a married couple, including Germany. 

Your spouse is a non-US Citizen: If you live outside the United States, your foreign spouse is not required to file a US tax return. In most cases, filing as Married Filing Separately is the best way to go. Remember, they must be a non-US Citizen without a Green Card to file separately.

Child Tax Credits for Families Living Abroad

Most expat parents can benefit from the Child Tax Credit, whether married or single. You can claim up to $1,700 per child in refundable child tax credits when you live abroad. Since most expats won’t owe US taxes, you will probably receive the total amount as a tax return. Yet another reason to file your US tax return on time. 

If you were hoping to receive the new, higher Child Tax Credit, you must have lived in the US for at least half of the tax year. Read more about if your child qualifies for the Child Tax Credit and exactly how much you could receive. 

MyExpatTaxes‘ tax software will automatically determine your eligibility for a refund. You can always ask a Tax Professional to review your prior year’s US tax returns to see if they are worth amending.

Anyone who doesn’t qualify as married according to the IRS but still has dependent children can consider if they should file as head of household.

Tax Forms Expats Should Know

Sure, you may know a bit about filing a 1040, but for Americans in Germany, there are several tax forms expats should be aware of when filing taxes. FEIE, FATCA, FTC, or FBAR are more than fancy acronyms. They are important documents you might need to file. 

Two of the most common expat tax form categories are Forms that help you avoid double taxation and Forms that help you report your foreign assets.

Forms That Help You Avoid Double Taxation
Foreign Tax Credit – Form 1116. It gives you credit for income taxes you paid in Germany
Foreign Earned Income Exclusion – Form 2555. Excludes a certain amount of the income you made in Germany

Forms That Help You Report Your Foreign Assets
FATCA – Form 8938. Mandatory report to the IRS of foreign assets over $200,000 for singles and $400,000 for married couples living abroad.
FBAR – Form 114. Mandatory report to FinCEN of foreign assets over $10,000.

Self-Employment in Germany

Congrats! You’re living your best life in your favorite German town and are self-employed. That is no small feat! As any American self-employed expat in Germany will probably tell you, the Germans sure love their taxes! 

While you’re busy getting your “Steuererklärung” in order, don’t let this be an excuse to forget your US tax return. 

One of the most common mistakes when using US-based tax software is US expats getting incorrectly charged with US self-employment taxes. That’s why MyExpatTaxes was created to prevent you from paying more taxes than you should!

Basics of Investing as an American in Germany

Diversifying your investments while residing in Germany offers various avenues. Although the US imposes stringent rules on expat investments, navigating them is far from impossible. With a clear understanding of suitable investment avenues, the process becomes relatively straightforward. Identifying strategic investment destinations becomes crucial, ensuring you stay within compliance boundaries while making the most of available opportunities.

Common Ways to Invest in Germany:

• Property: Americans living in Germany are allowed to buy property both for personal use or as an investment.
• IRAs/Roth IRAs: Ready to save for retirement? Great. Expats can invest up to $7,000 per year in a Retirement Account. 
• US-based Stocks & Bonds: Keep your portfolio US-based to make your life easy and your wallet happy. Americans often pay high fees and even higher tax rates when they invest in foreign investment products like mutual funds based outside of America!

Suppose you invest in German mutual funds; there is no need to sell them all now. MyExpatTaxes is the only tax software that will help you report these investments to the IRS on Form 8621 (PFICs).

Property in Germany

Another common way to invest is by buying property. If you’re unable to purchase just yet, then renting may be a better choice.

Buying & Selling Property

Buying: Depending on where you want to live in Germany, you may consider whether buying a property is worthwhile. Germany has a competitive market because of low interest rates on home mortgages. 

Purchasing a home in Germany will not trigger a US taxable event. However, if you suddenly have a large deposit made into your German bank account for your new mortgage, expect to report that on the FBAR and potentially Form 8938.

See also: 8 Things to consider when buying property abroad.

Selling: When it comes time to dispose of your foreign property, you will need to make sure to document the cost basis and selling fees accurately so you are only taxed on the profit from the sale. Just like with US properties, you might be able to exclude up to $250,000 or more of profit from the sale of your foreign property if you satisfy the Section 121 Exclusion requirements.

Perks of buying in Germany:

• Own your own home and have the right to make decisions about it
• Possibly a good return on your investment if done right
• The German property market is considered relatively stable

Downsides of buying in Germany:

• If you plan to sell your home after fewer than ten years, you will pay significant capital gains taxes to the German government.
• If you plan to use the property for rental income, beware of the laws that protect renters; they are robust. They could potentially lead to trouble as a landlord if you don’t prepare ahead of time. 

Renting Property

Renting: Renting may come as a surprise to some, but the majority of the German population famously prefers to rent. For Americans, this may come as a bit of a surprise. With rental prices in most areas quite reasonable, many Germans don’t see the benefit of buying their home.

Perks to renting in Germany:

• Strong renters’ rights! Those same renters’ rights that can challenge property owners provide you security.
• Little commitment. If you move unexpectedly, you only need to honor your rental agreement. 

Downsides of renting in Germany:

• You’ll need to return the property in the same condition you received it. If you rented a freshly painted apartment, you’d have to paint it when you move out, especially if you hope to get your deposit back.
• Kitchen Not Guaranteed. Yup! In Germany, renting out property without any kitchen cabinets or appliances is prevalent. You’ll need to provide those yourself.

Like with US rental income, you will need to report any rental income and expenses from your German properties on your US Tax Return via Schedule E. Just a heads up, the US calculates depreciation differently than the Germans do, so let MyExpatTaxes figure out the rental depreciation for you.

The Foreign Housing Exclusion:

When discussing housing options for expats abroad, we must share another way to reduce your US tax bill. Use the Foreign Housing Exclusion to account for expenses associated with your foreign housing, such as:

• Rent
• Utilities
• Property Insurance
• Household repairs…and more!

Retiring Abroad in Germany

Ahhh….retirement. In German, we don’t call them “Senior Citizens” but “Pensionär.” As in, a person receiving their pension. Retiring abroad is an excellent opportunity to experience a new culture, travel easily around Europe, and perhaps even learn a new language! 

Before retiring, you might want to look into saving up for retirement with these accounts:

1. German pension through your employer – thanks to the German/US Tax Treaty, contributions and earnings in these plans are deferred from taxation until you withdraw the income!
2. German state pension – thanks to the German/US tax treaty, this income would generally be exempt from US taxation.
3. US Individual Retirement Account (IRA)
4. US Social Security Benefits

Why File Your US Expat Taxes from Germany

Built by expats, for expats
We know the struggles of US expat taxes firsthand, because we’ve been there. That’s why we created MyExpatTaxes: to make the process easier for people just like us.

Transparent pricing
No hidden fees, no surprises. Our pricing plans are clear from the start, so you always know what you’ll pay.

Easy e-filing
Forget printing forms and mailing them to Texas. With MyExpatTaxes, you can e-file 99% of expat tax returns online fast, simple, and secure.

MyExpatTaxes is Here to Help

Still have questions after reading this guide? No problem. You can explore our Help Center, connect with a Tax Professional, or jump right into filing your return and get answers along the way through our Support Specialist Chat.

Why File Your US Expat Taxes from Germany with MyExpatTaxes

Built by expats, for expats

We know the struggles of US expat taxes firsthand, because we’ve been there. That’s why we created MyExpatTaxes: to make the process easier for people just like us.

Transparent pricing

No hidden fees, no surprises. Our pricing plans are clear from the start, so you always know what you’ll pay.

Easy e-filing

Forget printing forms and mailing them to Texas. With MyExpatTaxes, you can e-file 99% of expat tax returns online — fast, simple, and secure.

Premium support for Germany

If you also need to file taxes in Germany, MyExpatTaxes Premium has you covered — guiding you through both US expat taxes and your German return in one place.