Tax return in Germany for foreigners made easy – Steuererklärung

Filing a tax return in Germany is usually the only interaction with the Finanzamt that you might actually look forward to. That is because it can put a nice chunk of cash back in your pocket. We’re indeed talking about a few hundred to a few thousand euros.

Luckily, Germany has made it much easier in recent years for foreigners to do their tax return in Germany in English.

In this guide, you will learn how to do it yourself with confidence, how to maximize your return, where to find help and how to address typical edge cases for many expats.

If you have any questions, feel free to use the comments section. I answer each question personally.

Bastien – Settle in Berlin

Should I be doing a tax return in Germany?

• It is compulsory for self-employed people.
• For employees, it is only compulsory if any of the following situations applies to them.

Income sources have changed

• You’ve received more than 410€ in social/welfare benefits (like unemployment benefits, Elterngeld or Kurzarbeit Geld).
• You’ve had more than one employer in the year.
• You’ve had than 2 salaries (like a full-time job and a minijob).
• You want to make use of tax deductible expenses.
• You have received income from abroad.

Family situation has changed

• Married with tax classes 3 and 5, or both 4 “mit Faktor”. More info on tax classes here.
• Divorced and re-married the same year.

However, it’s almost always a good idea to submit a tax declaration in Germany, even you are not in the situations above. There are many ways to deduct expenses to lower your total taxable income, even as a student or when unemployed!

You have already paid your taxes throughout the year, now your job is to obtain as much refund as you can! I show you how in this guide.

How much can I expect?

The average tax refund in Germany in 2024 was 1 172€, though it really depends on your situation. Things like:

• work-related expenses
• insurance payments
• childcare costs
• commuting costs.
• more on that later in this guide..

Married couples and parents usually see bigger refunds, while those with fewer deductible expenses might get a smaller slice. The takeaway? The more you can legitimately claim, the more the Finanzamt happily hands back.

What is the tax return deadline in Germany?

Here is an overview when it’s due, based on your situation.

In theory, the deadline is to the 31st of July (for people that obligated by law to submit one). However, you can ask for an extension if you are short on time. Using a Steuerberater allows you to have even more time, as they have until February of the year after to do it. Be aware that there is a penalty of 25€ per late month.

Employees whose sole income are their salaries are not required by law to submit a tax return. This means that the deadline moves to 4 years in the future. For example, you can do your tax return in Germany for the year 2021 until the last day of 2025.

I am running out of time, can I extend the deadline?

If you feel like you are running out of time, you can let your Finanzamt know before the 31st of July you need more time. They usually give you an extra 2 or 3 months to do your tax return in Germany. If you are working with a Steuerberater directly, they can even do until the year after.

How to do my tax return in Germany

Doing it on your own with Elster

You can skip to this part if you an easier (paid) method.

From 2022 on, the ministry of finance has made away with paper forms. It’s only possible to submit a tax declaration digitally. That’s where ELSTER comes in.

ELSTER (ELektronische STeuerERklärung) is the name of the free official tool edited by the ministry of finance you will use. You can read a full guide about Elster here. With ELSTER you can:

• Find all the forms relevant to your situation (as listed below).
• Input your personal data securely.
• Save drafts at any point.
• Pre-fill some of your information to save time.
• Contact your local tax office directly.
• Receive your final tax assessment faster in digital form.
• Get an answer faster from the tax office.
• Easily have an accountant connect to your data.
• Bonus: Use built-in Chrome translate function to understand what the forms are about.

This tool is relevant for all tax payer profiles: singles, students, couples, families, employed or freelancing.

This is how you sign-up for Elster:

1. Navigate to elster.de and go to “Konto erstellen“.
2. The most common option for foreigners is to receive a “certificate data” to start the account. Think of it as a key to prove your identity.
3. Pick “Zertifikatsdatei” as an option & “Auswählen“
4. Pick “Für mich“.
5. Pick “Mit steuerlicher Identifikationsnummer“
6. Enter your name, email & your tax ID, (not your Steuernummer, your tax iD. Read this guide about tax IDs for more details). Enter your user name, pick your security question and the answer to that question.
7. Tick the terms and conditions box & click “Weiter“.
8. A single use password will be sent by post to you within 10 days. With this, you will be able to download your certificate data on your computer & pick a permanent password.
9. Every time you want to login on Elster, you’ll need to upload your data as well as using your user details.

Here are the most commons forms for tax return in Germany

If you are an employee , you need the following forms (e.g for 2025) :

• ESt 1A 2025 or (The main form that details general info like your address, iD nummer,etc)
• Anlage N 2025 (The form to detail your income as an employee)
• Anlage Vorsorgeaufwand 2025 (The form to detail your insurances)

If you are self-employed, you need the following forms (e.g for 2025) :

• Est 1A 2025
• Anlage S 2025 (Freelancers only)
• Anlage G 2025 (Gewerbetreibende only)
• Anlage USt 2025 (if you pay V.A.T)
• Anlage GeSt 1A 2025 (Gewerbetreibende only)
• Anlage EÜR

Other common forms include:

• Anlage Sonderausgaben: to document special expenses you want to put off in taxes. This would include pension contributions, education costs, donations and a lot more.
• Anlage Außergewöhnliche Belastung: to document “extraordinary” expenses in case of traumatic events, health issues or handicap.
• Anlage Haushaltsnahe Aufwendungen: to document home related services expenses such as your cleaning professional or renovations.
• Anlage Kind: to document expenses related to your children.
• Anlage Unterhalt: to document financial support provided to other members of your household (eg: spouse, relatives with no income).
• Anlage V: to document rental income.
• Anlage AUS: to document income from outside Germany (except salary)
• Anlage N-AUS: to document salary income from outside Germany.
• Anlage AV: to document a Riester-supported pension scheme.
• Anlage VL: if you received or want to receive vermögenswirksame Leistungen.
• Anlage SO: in case you sold property that is not your primary residence, less than 10 years after purchase or pay alimony.
• Anlage KAP: to document income from financial assets.
• Anlage R: in case you are a retiree and want to submit a tax return in Germany.
• Anlage L: to document income from farming or forestry.
• Anlage U: to document alimony paid to ex-partners or spouses.
• Form “Einwilligung zur elektronischen Bekanntgabe“: this is where you specificy you want to receive your tax assessment in digital form only.

How to file your tax return for free with Elster forms

You can translate this page in your browser for a step-by-step guide on how to fill in Elster forms manually for your German tax return. It covers most use cases for most people.

How to file your taxes faster & easier – against a fee

If you want to maximize your tax return or afraid of making mistakes, there are other ways to do your tax return in Germany.

Good value for the money: self-help online platforms

If this is too much to do, there are also online tools that make it super easy to get your tax declaration in Germany right for a maximum return. New platforms have appeared the past few years to help expats do their taxes 100% in English. They offer the following:

• You can do your tax return in Germany in English.
• Your hand is really guided step-by-step with the tool in a clean interface.
• Check in real time how high your return will be.
• Save progress at any time when you register for a free account, only pay when you submit.
• Submit everything to the Finanzamt online directly.
• Call a English-speaking hotline if you have questions.

In that space, I would recommend the following 3 providers:

TaxFix (39,90€ per submission) or Wundertax (34,90€ per submission): Pick this if your situation is relatively simple: employee or student, no income from abroad, no income from rental, etc. The interface is particularly clean and aimed at high processing speed but they don’t support all profiles yet.

SteuerGo (30€ per submission): Pick this if your situation is a little more complex: self-employed, married with kids, income abroad, pensions, income from property etc. For self-employed people, it also lets you do additional forms like (Einnahmenüberschussrechnung (EÜR), Umsatz- und Gewerbesteuererklärung). Interface is a little noisier but it supports almost all profiles.

SteuerGo does not support one case: if you have had a foreign employer that year. In this case, you can turn to platforms like SmartSteuer which also supports that (No English though).

Worth it if you have a more complex situation: a Steuerberater

You can also turn to professional tax advisers in Germany for this. A Steuerberater is a trained agent capable of preparing, processing and submitting your tax declaration in Germany. They are accountants usually experienced into finding particular rules that is relevant to your tax profile to optimize your return. Even if their fees are controlled by certain laws, you usually have to pay a few hundred euros for their services. This is why it’s only relevant if your situation is a bit more complex like earning relatively well, being married, having kids, owning a house and having different sources of income. It’s also quite normal for freelancers and self-employed persons to have one.

Full guide on how to find a good English-speaking Steuerberater (in Berlin or anywhere else in Germany).

Optimizing your tax return with deductions

There is a detailed guide on tax deductible expenses for German residents to help you maximize your tax return. Here is a quick overview.

Expenses for employees

Employees in Germany can claim a standard annual employment expense allowance of 1,230€. If actual work-related expenses exceed this amount and are properly documented, the higher amount can be deducted. For example:

• Relocation costs for professional reasons
• Job application expenses
• Commuting costs
• Work-related training and materials
• Work equipment (e.g., computers)
• Double household expenses (e.g., weekend commuting)
• Home office costs (if in a separate room)
• For remote work expenses

Insurance contribution deductions:

• Health and long-term care insurance: 100% deductible
• Unemployment insurance.
• Pension scheme contributions.

Personal deductions:

• Alimony
• Charitable donations
• Church tax
• Mortgage interest (only for rental properties)

Child-related deductions:

• Private school tuition
• Childcare for under 14s

I have filed my tax declaration, what now?

If you have signed-up with ELSTER already, it’s all a matter of a clicks. With self-help platforms, you will need to pay a fee in order to submit it to the Finanzamt.

After this is done, you will probably wait for 1 or 2 months before you get any answer. You will receive what is called a “Steuerbescheid“, which contains the final assessment made about you from the Finanzamt. Hopefully, a little ka-ching will appear on your bank account some weeks after that. You can now afford this awesome ebike you spotted, or else, paying for your next trip back home.

Alternatively, the Finanzamt might ask you to provide proof for certain things you stated in the forms, or provide additional documents. In this case, expect even more processing times. Make sure to submit a response in time! Here again, if you need more time to gather those documents, you can simply ask for a little more time.

When you disagree with the outcome of the tax return

If you believe that the Finanzamt has made a mistake in your Steuerbescheid (tax assessment notice), or if you disagree with the decision, you have several options to challenge it.

1. Check the Steuerbescheid carefully:
   • Review all calculations, deductions, and personal details to identify possible errors.
   • Compare the figures with your original tax return and supporting documents.
   • If unsure, consult a tax advisor (Steuerberater) or the local Lohnsteuerhilfeverein (income tax assistance association).
2. File an objection (“Einspruch“) within one month under (Abgabenordnung, §§ 347–367 AO):
   • You have one month from the date the notice was issued (not the date you received it) to file an Einspruch in writing.
   • The objection can be submitted by letter, fax, or electronically via ELSTER .
   • Your objection should clearly state that you disagree with the assessment and, ideally, explain why (e.g., missing deduction, incorrect income calculation).
   • While the objection is under review, the tax office will reassess your case and may correct any errors.
   • If your objection involves a payment you believe is incorrect, you can request to delay payment (“Aussetzung der Vollziehung“) until the issue is resolved.
   • The Finanzamt may approve this if your claim seems reasonable, but interest may apply later if the objection is rejected.
3. Await the Finanzamt’s decision:
   • The tax office can either accept your objection (and issue a corrected notice) or reject it.
4. File a legal appeal (“Klage“):
   • If you still disagree, you can take your case to the Finanzgericht (tax Court) within one month of receiving the decision.
   • Legal representation is not required at the first court level but is recommended for complex cases.

Freelancers: use a bookkeeping software

All bookkeeping software sold in Germany use the same standards than the tax advisors do. This means that you can easily let somebody access your data and do the hard work for you. No need to go over each details, saving you and your Steuerberater a lot of time. And this is not even talking about all the time and stress it can save you in the day-to-day business. I have reduced my time spent on bookkeeping by 80%.

You can find a detailed guide on accounting software of freelancers in Germany here.

Students: file a tax declaration anyway

Yes, it’s a bit of work but it’s often worth it. If you work part-time or take internships during studies, taxes are frequently withheld from your paychecks. By submitting a tax return, you can reclaim part or all of this money if their total annual income falls below the tax-free threshold.

Here are some expenses you could put off in taxes (in Werbungskosten):

Doing your tax return after leaving Germany for good

For a lot of us, our love affair with Germany might not last forever. In this case, there are plenty of items to take care of on your way out of the country. One of them is not to forget to do a tax declaration the year after you leave the country. Example:

I left Germany for Denmark in 2021. In 2022, I can still submit a tax return to the Finanzamt from Denmark, as a Danish resident.

Even if you aren’t a German resident by the time your submit your forms, you can still get money back. The process doesn’t change all that much. You just need to pay attention to these points:

• Use Elster or one of the providers listed above to send your documents to your Finanzamt digitally.
• Indicate your current/new address in your new country in the forms.
• Communicate your new bank account details:
  • IBAN / BIC/SWIFT
  • Bank name & address
  • Bank account holder name

I personally checked with my tax consultant as well as with the Finanzamt: they have a internal process/protocol to handle tax returns for people located abroad, so there should not be any issues and everybody gets their money eventually. However, they do recommend to keep a German bank account to reduce potential costs and speed up the process.

Tax return Germany – FAQ

Sources and references

• Finanztip Stiftung. “Steuererklärung selber machen: tipps für die steuer.” Finanztip. Accessed October 20, 2025. https://www.finanztip.de/steuererklaerung/
• Federal Central Tax Office (BZSt). “Tax return.” Accessed October 20, 2025. https://www.bzst.de/EN/Private_individuals/Tax_return/tax_return_node.html
• Wikipedia. “Einkommensteuererklärung.” Wikipedia. Accessed October 20, 2025. https://de.wikipedia.org/wiki/Einkommensteuererkl%C3%A4rung
• Bundes-Finanzverwaltung (ELSTER). “Elster – your online tax office.” ELSTER. Accessed October 20, 2025. https://www.elster.de/eportal/start?locale=en_US#elster_allgemein
• Make it in Germany. “Gehalt, steuern & sozialversicherung.” Make it in Germany. Accessed October 20, 2025. https://www.make-it-in-germany.com/de/arbeiten-in-deutschland/arbeitswelt/gehalt-steuern-sozialversicherung
• stern.de. “Steuererklärung für einsteiger: gut gerüstet für die steuer.” Stern. Accessed October 20, 2025. https://www.stern.de/wirtschaft/geld/steuererklaerung/steuererklaerung-fuer-einsteiger-gut-geruestet-fuer-die-steuer-3863006.html
• Bundes-Finanzverwaltung (ELSTER). “Hilfe – bescheide und sonstige schreiben in elektronischer form.” ELSTER Help. Accessed October 20, 2025. https://www.elster.de/eportal/helpGlobal?themaGlobal=help_diva#HelpDIVABescheideundsonstigeSchreibeninelektronischerForm
• Statistisches Bundesamt (Destatis). “Im Fokus Steuer­erklärung: Durchschnittliche Rückerstattung lag bei 1 172 Euro.” Accessed October 21, 2025. https://www.destatis.de/DE/Themen/Staat/Steuern/Lohnsteuer-Einkommensteuer/im-fokus-steuererklaerung.html. (destatis.de)