U.S. EXPAT TAX GUIDE – GERMANY
When is an American in Germany required to file an FBAR?
If you’re a US citizen or green card holder residing in Germany, you must file a Foreign Bank Account Report (FBAR) when the aggregate balances of all your foreign financial accounts exceed US$10,000 at any point during the calendar year. This requirement includes various types of accounts such as checking, savings, and investment accounts held at foreign banks.
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How are multiple financial accounts reported on an FBAR?
To report multiple accounts on an FBAR, you must provide details like the account numbers, the maximum balance of each account during the year, and the address of the financial institution. This ensures that the US authorities are aware of all your financial holdings abroad.
Do I need to report accounts with minimal or zero balances?
Yes, you must report all foreign financial accounts, even those with minimal or zero balances at any point during the year. This includes accounts on digital payment platforms like PayPal, which are subject to the same reporting requirements as traditional bank accounts.
Are pension accounts required to be included in FBAR filings?
Whether pension accounts need to be included in FBAR filings can vary depending on the specifics of the account and the individual’s circumstances. Because the regulations can be complex, it’s advisable to consult a tax professional who can provide precise guidance on your FBAR obligations, ensuring you comply fully and avoid potential penalties.
What are the deadlines for FBAR filing, and is there an extension available?
The standard deadline for filing an FBAR is April 15th of the year following the reported calendar year. However, there is an automatic extension until October 15th, providing additional time to gather necessary information and ensure the accuracy of your filing. This extension is automatic and does not require a specific request, allowing you to take the time needed to complete your FBAR accurately.
Why partner with a specialist Expat accountant?
Living outside of the US can make your tax filing requirements complicated. To ensure you pay the minimum amount of taxes, it’s critical to work with an accountant who understands every aspect and avenue for reducing your tax liability. We have a dedicated team of tax accountants who work exclusively with US expats earning and investing in Germany. Partnering with a specialist expat accountant can help you navigate complex tax regulations and optimize your tax situation.
