Our law firm regularly advises clients who relocate their residence from Germany to Spain. In such cases, one question frequently arises: Which country is entitled to tax worldwide income during the year of relocation – Germany or Spain?

As determining tax residence during the year of relocation is not always straightforward, a German Tax Residence Certificate may serve as key evidence. By means of this certificate, the competent German tax office officially confirms that you were subject to unlimited income tax liability in Germany during a specified period.

When Is the Certificate Required?

A Tax Residence Certificate is particularly relevant if:

1. You move to Spain during the course of a calendar year.
2. You may be liable to tax in both Germany and Spain.
3. A dispute arises between the two countries as to which one should regard you as tax resident.

In such cases, the Spanish Tax Agency (AEAT) will often request a Tax Residence Certificate issued by the German tax authorities—for example, when registering as a tax resident in Spain or when determining tax residence under the provisions of the Double Taxation Agreement (DTA) between Germany and Spain. The certificate may also be required when applying for the so-called Beckham Law. Further information can be found in our article: Beckham Law: Fixed 24% Tax Rate for Foreign Workers Relocating to Spain.

What Does the Certificate Confirm?

The certificate officially confirms that, during the period specified, you were subject to unlimited income tax liability in Germany, meaning that your tax residence or habitual residence was located there. This constitutes an important criterion for determining tax residence under the Double Taxation Agreement between Germany and Spain. You can find further information on tax residence here.

The certificate generally contains the following information:

1. The competent German tax office.
2. Your German tax number or tax identification number.
3. Your name, date of birth and residential address.
4. The period during which you were tax resident in Germany.
5. The foreign country for which the certificate is issued (e.g. Spain).

Why Is the Certificate So Important During the Year of Relocation?

During the year of relocation, it is possible for both Germany and Spain to consider you tax resident under their respective domestic tax laws. In such cases, the Double Taxation Agreement (DTA) between Germany and Spain determines tax residence by applying the so-called tie-breaker rules, including, for example:

- Where your permanent home is located.

- Where your centre of vital interests is situated.

- In which country you habitually reside.

Further information on determining tax residence can be found in our article: Spain Taxes: Main Residence or "Second Home".

The German Tax Residence Certificate therefore constitutes important evidence in establishing in which country you were effectively tax resident during the relevant period.

How to Apply for the Certificate

The application is submitted using the official form issued by the German Federal Tax Administration:

[Application for a German Tax Residence Certificate (Germany – Spain)]

Application procedure:

1. Complete and sign the application form.
2. Submit two signed copies to your competent German tax office (some tax offices also accept applications by email).
3. It is particularly important to specify clearly the period for which tax residence is to be certified.
4. Once the application has been reviewed, the original certificate, duly signed and stamped, will be returned to you.

The certificate is generally issued free of charge.

 

Validity of the Certificate

The certificate is valid for the period specified therein, which will typically correspond to the calendar year in which the relocation takes place.
It must be submitted in its original form, must not contain any alterations or deletions, and must be signed and officially stamped by the German tax authorities.

Our Practical Advice for Moving to Spain

During the year of relocation, it is particularly important to establish your tax residence at an early stage.
The German Tax Residence Certificate can play a decisive role, for example:

- when filing your Spanish Personal Income Tax Return (IRPF),

- when determining the date on which you became tax resident in Spain,

- and when preventing double taxation of your worldwide income.

Please note that it is also possible to obtain a Spanish Tax Residence Certificate issued by the Spanish Tax Agency (AEAT). This certificate serves as official proof of Spanish tax residence before the German tax authorities.

Our law firm will be pleased to analyse your individual circumstances, carry out the necessary administrative procedures on your behalf and assist you with the preparation and filing of the relevant tax returns. Should you require further information or have any questions regarding this matter, please do not hesitate to contact us by email or telephone.

Author:

Lisa Wörfel
Tax Advisor
info@sspartners.es
Tel: (+34) 951 12 13 06
Facebook I LinkedIn I Amazon