Europe · EUR
Germany
Reviewed 2026-06-21
Top income tax
45%
Self-employed SS
No
VAT
19%
Capital gains
26.38%
Exit tax
Yes
Nomad visa
No
45
/ 100
Tax efficiency44
Ease to enter57
Ease to exit21
Cost of living65
Internet20
English100
Germany taxes residents on worldwide income with a progressive personal rate that runs from 14% up to a 45% top band, plus a 5.5% solidarity surcharge and optional church tax. Investment income and dividends face a flat 26.375% withholding, while privately held shares sold after more than a year and other movable assets can be exempt. The self-employed are generally not forced into the social security system, but freelancers and entrepreneurs need a Section 21 residence permit since there is no dedicated digital nomad visa, and leavers with a 1% or larger shareholding can face an exit tax.
Personal income tax
Income tax structureProgressive
Top income tax rate45%
Entry income tax rate14%
Top rate threshold$300,000
Taxation basisWorldwide
Local/state income taxYes
Social security
Self-employed social securityNo
Employee SS rate20.6%
Employer SS rate20.6%
Indirect & other taxes
VAT standard rate19%
Capital gains rate26.38%
Long-hold CGT exemptionYes
Wealth taxNo
Inheritance/gift taxYes
Inheritance top rate50%
Property taxNo
Exit & residency
Exit taxYes
Exit tax triggerDeemed disposal of a substantial shareholding of 1% or more in a corporation when ending unlimited German tax liability (Section 6 AStG / Wegzugsbesteuerung)
Exit tax residency lookback7 years
EU/EEA deferralNo
Days to trigger residency183 days
Corporate
Corporate income tax rate15.82%
WHT on dividends26.38%
CFC rulesYes
Incentives & special regimes
Special expat regimeNo
Immigration & setup
Digital nomad visaNo
Entrepreneur visaYes
Ease of setup3 / 5
Lifestyle
Cost of living index65
Internet speed95 Mbps
English proficiencyHigh
Civil liberties92
Sources
- PwC Worldwide Tax Summaries — Germany Individual Taxes on Personal Income
- PwC Worldwide Tax Summaries — Germany Individual Other Taxes (social security, VAT, inheritance, wealth)
- PwC Worldwide Tax Summaries — Germany Corporate Taxes on Corporate Income
- Tax Foundation — Germany Tax Rates and Rankings
- BAMF — Self-employment and freelancing residence permit (Section 21 AufenthG)
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.