When do I become a tax resident in Germany?

Checked on 2026-10-25

Under German law you have unlimited income tax liability if you have a residence (Wohnsitz) or your habitual abode in Germany. A continuous stay of more than six months always counts as habitual abode from the first day, and short breaks don't interrupt it. Purely private stays, such as holidays, of up to one year are excluded.

Key facts

What	The law says	Source
Who is fully liable to income tax	Individuals with a residence (Wohnsitz) or habitual abode (gewöhnlicher Aufenthalt) in Germany have unlimited income tax liability	EStG § 1(1)
What counts as a residence	Holding a dwelling under circumstances that show you will keep and use it	AO § 8
What counts as habitual abode	Staying somewhere under circumstances that show you are there not just temporarily	AO § 9 sentence 1
The six-month rule	A continuous stay in Germany of more than six months always counts as habitual abode, from the start; short interruptions are ignored	AO § 9 sentence 2
Exception	The six-month rule doesn’t apply to stays only for visits, holidays, health cures or similar private purposes lasting no more than one year	AO § 9 sentence 3
No residence or abode, but German income	Limited tax liability on German income under § 49 EStG	EStG § 1(4)
Option for non-residents	On application, treated as having unlimited liability if at least 90% of income is subject to German income tax, or other income stays within the basic allowance	EStG § 1(3)

Two tests: residence or habitual abode

The Income Tax Act (EStG § 1(1)) makes you liable to German income tax without limitation if either test is met.

Residence (Wohnsitz). The Fiscal Code (AO § 8) defines it as a dwelling you hold under circumstances that indicate you will keep and use it. The test looks at the dwelling and how you hold it.

Habitual abode (gewöhnlicher Aufenthalt). Under AO § 9 you have it where you stay under circumstances showing you are not there only temporarily. The law adds a fixed rule: a continuous stay in Germany of more than six months always counts as habitual abode, and it counts from the beginning of the stay. Short interruptions don’t break the period.

The private-stay exception

The six-month rule does not apply when the stay is only for visits, recreation, health cures or similar private purposes and lasts no longer than one year (AO § 9 sentence 3).

If neither test is met

Without a residence or habitual abode in Germany, you have limited tax liability, covering German income listed in § 49 EStG (EStG § 1(4)). You can apply to be treated as having unlimited liability if at least 90% of your income in the calendar year is subject to German income tax, or if your income not subject to German tax doesn’t exceed the basic allowance in § 32a EStG. The law requires a certificate from the foreign tax authority showing that income (EStG § 1(3)).

Income tax rates once you are liable: see the Germany income tax rates page.
Payroll tax classes: see the Germany tax classes page.

Sources

Einkommensteuergesetz (EStG), § 1 (consolidated text, gesetze-im-internet.de) checked 2026-10-25
Abgabenordnung (AO), § 8 Wohnsitz (consolidated text, gesetze-im-internet.de) checked 2026-10-25
Abgabenordnung (AO), § 9 Gewöhnlicher Aufenthalt (consolidated text, gesetze-im-internet.de) checked 2026-10-25

Change history

2026-10-25: Page created

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