US Taxes for Americans Living in Germany: A Complete Guide 2026

For many Americans relocating to Germany, US Taxes for Americans Living in Germany can come as a major surprise, because their US tax obligations don’t end when they leave the United States. Unlike most countries, the US tax system is based on citizenship rather than residence. This means that US citizens and Green Card holders are required to file a US tax return every year—regardless of where they live.

Understanding how to manage taxes across two countries is essential to stay compliant and avoid unnecessary stress.

Do You Still Have to Pay US Taxes While Living in Germany?

Yes—Americans living in Germany must still file a US tax return annually. However, filing does not always mean you will owe US taxes.

Many expats end up paying little or nothing to the US after applying the right tax benefits. That said, filing from abroad involves more than simply reporting income. It often includes additional disclosures and understanding how different tax systems interact.

Double Taxation: A Common Concern

One of the most common concerns for US expats in Germany is double taxation—paying taxes in both countries on the same income.

While you are required to pay taxes in Germany to the Finanzamt, the US provides relief through specific provisions designed to prevent double taxation. The two most important are:

1. Foreign Tax Credit (FTC)

The Foreign Tax Credit allows you to claim a dollar-for-dollar credit on taxes already paid in Germany against your US tax liability.

For expats living in higher-tax countries like Germany, this often reduces or completely eliminates US tax owed. Another advantage is that the FTC can be applied to both earned income (salary) and passive income (such as dividends or interest).

2. Foreign Earned Income Exclusion (FEIE)

The Foreign Earned Income Exclusion allows you to exclude up to $130,000 of foreign-earned income from US taxation.

This applies to income from employment or self-employment. However, using the FEIE may impact eligibility for certain US tax benefits, such as:

  • The refundable portion of the Child Tax Credit
  • Contributions to US retirement accounts

In some cases, both the FTC and FEIE can be used together—for example, applying the FTC to income above the FEIE threshold.

Important Note on Self-Employment Tax

Neither the FEIE nor the FTC reduces US self-employment tax. However, the US–Germany Totalization Agreement helps prevent double social security contributions by determining which country’s system applies to you.

Foreign Bank Accounts & Asset Reporting

Even if you don’t owe US taxes, you may still have reporting obligations.

FBAR (Foreign Bank Account Report)

You must file an FBAR if the total value of your non-US bank accounts exceeds $10,000 at any point during the year.

FATCA (Form 8938)

Some expats may also need to file Form 8938 under FATCA if they meet higher asset thresholds.

It’s important to note:

  • These are informational filings
  • Filing one does not replace the other
  • Missing them can result in significant penalties—even if unintentional

More Complex Situations to Consider

Tax situations can become more complex depending on your financial profile. Additional considerations apply if you have:

  • Self-employment income
  • Ownership in foreign businesses or partnerships
  • Investment income or foreign financial assets
  • Foreign pension plans

Certain foreign investments may be classified as Passive Foreign Investment Companies (PFICs), which come with complex reporting requirements and potentially higher tax rates under US law.

Additionally, German pension plans often do not receive the same favorable tax treatment under US tax rules as they do locally.

US Tax Deadlines for Expats in Germany

Managing deadlines is crucial when filing from abroad:

  • April 15 – Standard US tax deadline (any taxes owed must be paid by this date)
  • June 15 – Automatic extension for Americans living abroad
  • October 15 – Additional extension available if requested

Since Germany’s tax deadline is typically July 31, extensions can help align filings and ensure accurate reporting.

Filing Doesn’t Have to Be Complicated

While US tax obligations for expats can seem overwhelming, the right approach makes a significant difference. With proper planning, a clear understanding of available tax benefits, and the right tools or professional support, filing US taxes from Germany can be straightforward.

The key is to stay informed, meet all reporting requirements, and choose the most suitable tax strategy for your situation.

Need Help Navigating US Taxes from Germany?

If you’re unsure about your obligations or want to simplify the process, it’s always a good idea to seek expert guidance or use expat-focused tax solutions.

With the right support, you can spend less time worrying about compliance—and more time enjoying your life in Germany.