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    I live in the Netherlands – where do I pay tax on income from Germany?

    You usually pay tax in Germany on your wages from Germany.

    Read more about the exceptions:

    • You are temporarily employed in Germany

      Do you pay tax on your wages in the Netherlands and will you be temporarily working in Germany for your Dutch employer? In that case, you continue to pay tax in the Netherlands if you meet the following conditions:

      • You stay in Germany for work for a total of no more than 183 days in 12 months.
        The 12-month period does not have to be within 1 calendar year. The maximum number of days does not have to be consecutive. Normal breaks from work where you stay in Germany, such as sick days, weekends and national holidays, also count towards the total of 183 days.
      • You do not work in Germany on behalf of a permanent establishment of your employer.
        A permanent establishment is defined as a permanent business premises in Germany, such as a factory, workshop, warehouse or sales area.

      If you are in Germany for more than 183 days or if the German permanent establishment pays your wage costs, you pay tax in Germany on your wages in Germany. If you pax tax on your wages in Germany, you may be entitled to financial compensation.

    • You work for the government

      If you work for the government, you pay tax on the income you earn from this work in the country where the government is based. It does not matter which country you live in.

    • You work in education

      Will you be teaching in Germany or conducting academic research while being paid from the Netherlands (for example, by a Dutch educational institution)? In that case, you pay tax in the Netherlands for a period of up to 2 years from the day you start work.

      You do have to meet the following conditions:

      • You’re staying in Germany, where you will be teaching
      • You have a teaching position in Germany or conduct academic research at a university or another officially recognised educational institution.
      • The academic research must be conducted in the public interest and not primarily for the personal benefit of a specific person.
      • You do not live in Germany during the period you work there.

      This scheme applies to educational institutions of the government and to all private educational institutions officially recognised by the Netherlands, at any level (primary schools, secondary schools, vocational education, and university education). Ask your educational institution whether it is officially recognised by the Netherlands.

      If you receive a reimbursement from Germany, the rules listed under 'You are temporarily employed' apply. If you receive a reimbursement from Germany and work for a government institution, the rules under 'You work for the government' apply.

    • You work on an international business park

      Do you work in employment for a company located on a business park on the border of the Netherlands and Germany? If so, you pay tax on your wages in the country where you have mandatory social insurance. If you are socially insured in the Netherlands, you pay tax in the Netherlands. If you are socially insured in Germany, you pay tax in Germany.

      You can verify where you are insured at grensinfopunt.nl (only available in Dutch and German).

    • You work for a foreign employer

      Do you work in Germany for an employer not based in the Netherlands or Germany? In that case, you pay tax in Germany on your wages. However, if you stay in Germany for no more than 183 days in a 12-month period, you will pay tax in the Netherlands - unless you are posted, seconded, or on loan to Germany, or if you work for a permanent facility in Germany.

    • You receive a pension or annuity from Germany

      You usually pay tax in Germany on your Dutch pension or annuity. Read more about this at Pension from Germany – where do I pay tax?

    Compensation scheme if you pay tax in Germany

    The amount of tax you pay differs per country. Since you can deduct certain items (mortgage loan interest for an owner-occupied home, personal allowance) from your taxes in the Netherlands, you may have to pay less tax and national insurance contributions in the Netherlands than you would in Germany.

    As a result, the Netherlands and Germany agreed on a compensation scheme. If you work in employment, you can compensate for this difference by applying for the compensation scheme in your tax return. The compensation amount you receive is shown on your final tax assessment. If you are an entrepreneur or pensioner, you can apply for the transfer facility in your tax return.

    The compensation amount is equal to the difference between:

    • the German tax (including 'Solidaritätszuschlag') on your income from employment, plus any taxes and social insurance contributions payable in the Netherlands
    • the tax and social insurance contributions you would have to pay on your income from employment in the Netherlands

    Transfer facility

    You may also choose to have the transfer facility apply. In that case, the deductible items you cannot currently deduct from your Dutch tax return will be saved for a later year.

    Converting German wages to Dutch wages

    If you receive German wages, you must first convert them to Dutch wages before filing your return. Afterwards, in your tax return, enter the Dutch wages you calculated. You can convert your German wages using our tool.