Europe
Germany: tax at a glance
A residence-based system with combined corporate tax near 30% and a flat 25% investment tax. There is no wealth tax, though a solidarity surcharge and church tax both apply.
Ways to relocate to Germany
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 45%
- Corporate income
- Around 30% combined, made up of 15% federal corporate income tax plus a 5.5% solidarity surcharge, totalling 15.825%, on top of municipal trade tax of roughly 14%.
- Capital gains
- A flat 25%, or 26.375% once the solidarity surcharge is included.
- VAT / USt, also called Mehrwertsteuer.
- 19%
- Dividends (WHT)
- 26.375%
- Interest (WHT)
- 0%, though 26.375% applies to certain bank and bond interest.
- Royalties (WHT)
- 15.825%
- Social security (employee)
- Around 20.6%, subject to a cap.
- Social security (employer)
- Around 20.6%, subject to a cap.
- Wealth tax
- None. The net wealth tax has been suspended since 1997.
- Inheritance / estate
- 7-50%, depending on the relationship and the amount involved.
- Property tax
- Grundsteuer, reformed in 2025, plus municipal rates.
- Other
- Solidarity surcharge of 5.5%, plus church tax of 8-9%.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- Yes, leaving has a cost
- CFC rules
- Yes
- CRS
- Participating
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Frequently asked
What is the income tax rate in Germany?
The top marginal personal income tax rate in Germany is 45%. Progressive, reaching 42% from ~EUR 68k and a top rate of 45%, sometimes called the rich tax, above ~EUR 278k. A solidarity surcharge of 5.5% applies to high incomes, and members of a church pay church tax equal to 8-9% of their income tax.
What is the corporate tax rate in Germany?
The headline corporate income tax rate is Around 30% combined, made up of 15% federal corporate income tax plus a 5.5% solidarity surcharge, totalling 15.825%, on top of municipal trade tax of roughly 14%..
Does Germany tax capital gains?
Capital gains for individuals: A flat 25%, or 26.375% once the solidarity surcharge is included..