Need expert guidance on your German tax return as a Canadian citizen? In this guide, our certified advisors explain how to file step-by-step, ensuring you navigate the process correctly and efficiently.
Not every resident is required to file, but most should. You trigger a Mandatory Filing Obligation (Pflichtveranlagung) if you received wage replacement benefits (like unemployment pay), are married with Tax Class III/V, or had foreign income over €410 (such as investment income from Canada). If not required, you can choose Voluntary filing, which is the best way to claim relocation costs and secure a tax refund.
Generally, no. Germany taxes its residents on their worldwide income, meaning you must report earnings like Canadian dividends or capital gains. However, the Canada-Germany Tax Treaty ensures you are not taxed twice. Taxes withheld by the CRA are typically credited against your German liability. We review your global portfolio to ensure all foreign tax credits are recognized by the Finanzamt.
Many expats retain property in Canada (e.g., in Toronto or Vancouver) to rent out. This creates a specific cross-border workflow:
When you cease to be a resident of Canada, the CRA deems that you have sold certain assets (like stocks, crypto, or mutual funds) at their fair market value, triggering an immediate capital gains tax known as “Departure Tax,” even if you haven’t sold anything. We assist in establishing your cost basis for German tax purposes. It is vital to document the value of your assets upon entry to Germany so that when you eventually sell them, the Finanzamt only taxes the gain accrued during your German residency, not the gain from your years in Canada.
Germany and Canada have a social security agreement. We ensure that your contributions to the German pension system (Deutsche Rentenversicherung) are properly recorded and, where applicable, coordinated with your Canada Pension Plan (CPP) history, ensuring no contributions are “lost” between the two jurisdictions.
Navigating German bureaucracy requires precision. We start by analyzing your specific situation to define the most effective legal and fiscal strategy for your case.
Once your strategy is set, we guide you through the paperwork. We identify exactly which documents are needed and prepare everything on your behalf to ensure a flawless application.
We handle the final submission to the local tax office (Finanzamt). We manage all communication to ensure full compliance and secure the fastest possible result for you.
At Agroup Consulting, we work with certified German tax advisors (Steuerberater) specializing in international taxation. With over 15 years of experience, a proven track record of results, and the trust of more than 500 expats in Germany, our firm delivers trusted services that help you navigate the complex German fiscal system with complete confidence.
Moving to Germany does not automatically stop the CRA from taxing your worldwide income. To avoid filing in both countries indefinitely, you must legally establish yourself as a “Non-Resident for tax purposes”. To achieve this “clean break,” you generally need to sever your primary residential ties:
Significant Residential Ties: You should sell your Canadian home or rent it out to an unrelated third party long-term. Your spouse and dependents should ideally move with you.
Secondary Ties: You must cancel your provincial health coverage and valid driver’s license.
Final Return: You must file a final Canadian tax return indicating your specific “Date of Departure.”
If the CRA deems you a “Factual Resident” because you kept too many ties, you will continue to owe taxes in Canada on your German salary. We help you navigate the treaty tie-breaker rules to ensure your status is clear.
This is the most common financial shock for Canadians. While the RRSP is generally recognized under the Tax Treaty (meaning growth remains tax-deferred until withdrawal), the TFSA (Tax-Free Savings Account) is NOT tax-free in Germany.
The Reality: Germany treats a TFSA as a standard investment portfolio. This means any interest, dividends, or capital gains generated inside your TFSA are fully taxable in Germany immediately, even if you don’t withdraw the money. Furthermore, simply leaving Canada can trigger the “Departure Tax” (Deemed Disposition), where the CRA taxes you as if you sold all your assets the day you left. We calculate these liabilities to prevent double taxation on your hard-earned savings.
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No. Filing is only mandatory for freelancers or Tax Class III/V. However, voluntary filing is highly recommended and often yields an average refund of €1,072.
Yes. Voluntary filers can submit returns up to 4 years retroactively. This is ideal for claiming high deductions from your initial relocation year.
Not always. We utilize standard lump sums (Pauschalen) which allow you to deduct €1,230 for work expenses without needing physical proof.
Most clients receive their tax assessment and refund within 2 to 6 months, depending on the local tax office’s current workload.
