The German Expat Tax Checklist (EU Proxy)
This checklist focuses on the rules set by the Germany-Spain DTA, which often mirrors agreements with other core EU countries. The primary difference is Germany’s aggressive “exemption with progression” clause.
🔑 Phase 1: Income Tax (IRPF) & Double Taxation Agreement (DTA)
The Germany-Spain DTA uses the Exemption Method with Progression Clause for many types of income, meaning the income is tax-free in Spain but increases the rate on your other Spanish income.
| Income Source | Spanish Tax Status (for Resident) | Key Action |
| German Public/Government Pension | Taxable ONLY in Germany. | Exempt in Spain, but must be reported on your Spanish IRPF (Modelo 100) due to the Progression Clause. |
| German Private/Occupational Pension | Taxable ONLY in Spain (State of Residence). | Ensure you notify your German pension provider (e.g., using Form Entlastungsantrag) to stop German withholding, and declare the full amount in your Spanish IRPF. |
| German Rental Income | Taxable ONLY in Germany. | Exempt in Spain, but must be reported on your Spanish IRPF due to the Progression Clause. |
| German Salary Income (Worked in Spain) | Taxable ONLY in Spain (Work location rule). | This income is fully subject to Spanish IRPF. You should ensure your German employer (if applicable) is not applying German tax. |
| German Interest & Dividends | Taxable in BOTH, but Spain provides credit. | Germany may withhold up to $15\%$ on dividends. You pay Spanish tax on the dividend, but claim a Foreign Tax Credit for the tax paid to the Finanzamt (German Tax Office). |
💰 Phase 2: Wealth & Asset Reporting
| Tax / Declaration | German Expat Obligation | Key German-Specific DTA Provision |
| Modelo 720 | Mandatory if your German assets (bank accounts, shares, property) exceed €50,000. | Declare all German assets, including bank accounts and securities. |
| Wealth Tax | The German DTA has specific rules on Wealth Tax (which Germany currently does not levy). | Crucial: The DTA ensures that movable assets (shares, cash) are only taxable in the State of Residence (Spain). Real estate is only taxable where the property is located (if you own German property, it’s taxable in Spain, with a credit for any German tax paid, if applicable). |
⚖️ Phase 3: Tax Office Interaction & Reporting
| Task | Action Required / Focus | Implication |
| Tax Residency Certificate | Obtain a Certificate of Residency from the Agencia Tributaria (Spain) to present to the Finanzamt (Germany). | This is essential proof for your German pension fund or bank to stop withholding tax, allowing you to benefit from the DTA. |
| German Exit Filing | Germany has no formal tax Exit Tax or filing obligation upon leaving (unlike Spain’s IRPF final return), but you must file a final German tax return for the year of departure. | Ensure all German tax ties are officially cut to prevent future tax demands. |
Creditability of Withholding Tax (WHT) on Dividends and Interest
Status: January 1, 2025
Focus: Countries with a Double Taxation Agreement (DTA) with Germany
How to Read This Table
Understanding double taxation agreements can be confusing, but it essentially comes down to how much tax you pay in the country where the money is earned (the source) versus how much you can “deduct” from your taxes at home.
- National WHT (a): This is the “sticker price” tax rate that Spain would normally charge on dividends or interest if no treaty existed.
- Max Creditable per DTA (b): This is the maximum amount of Spanish tax that the German tax authorities will allow you to “offset” against your German tax bill.
- The Result: For dividends in Spain, even though the national rate is 19%, the treaty limits the creditable amount to 15%. This means you generally shouldn’t be “double taxed” on that 15%, as it is credited back to you in your home country’s tax return.
- Interest: Since the national withholding tax on interest in this context is 0%, there is no tax to credit back—you simply receive the interest “gross” (without Spanish tax deducted).
Data Table: Spain
| Tax Categories | Result: Creditable Amount | Notes on DTA Regulations | National Tax Name |
| Dividends: a) National WHT: 19% b) Max creditable per DTA: 15% | 15% (Dividends) | The source state has the right to tax dividends and interest from rights or claims with profit participation up to a maximum of 15% of the gross amount, provided these are deductible when determining the debtor’s profits (Protocol to the DTA, No. V regarding Art. 10 & 11). | Impuesto general sobre la renta de las personas físicas (Personal Income Tax); Impuesto sobre las Rentas del Capital (Capital Gains Tax) |
| Interest: a) National WHT: 0% b) Max creditable per DTA: 0% | 0% (Interest) | — | — |
Tax Guide 2026
If you need an overall view of tax obligations, click on Taxes in Spain Guide 2026.
