BEATE GURTLER-GREEN
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RE: Tax on German pension
GaryC - thanks for all your useful advice here. I've been reading through this helpful thread about taxing the German pension but I am still struggling to understand what the system is! I have sent an application for Veranlagungsverfahren (limited tax liability) to RiA but I am still waiting to get a tax assessment from them. Rather confusingly they have sent me an application form for unlimited tax liability, which has made me wonder whether that's the route I should follow. I have both an Identification number and a Tax number. I started to receive a monthly German pension of 552 euro from April 2024 which arrives in my Wise euro account. So in 2024 it totalled 4898.13 euro. I also receive an English state pension which in 2024 came to £7505.50 (~8909.74 euro). My understanding is that, because my English state pension is less than the 2024 Freibetrag of 11784 euro, that I could apply for unlimited tax liability which might result in lower tax. In 2025 I expect my English Pension to total £10133.5 (12036 euro) which is close to the 2025 Freibetrag of 12084 euro, and might even exceed it depending on exchange rate. Does it make sense for me to apply for unlimited tax liability at all? If I did so would I have to fill in paperwork every year? What I really want is the simplest way to pay tax on my German pension without needing to spend hours of calculation and form filling every year! Is the limited tax liability route best for this? What should I expect to happen now that I've submitted Veranlagerungsverfahren? For example, will I get a tax assessment? Can the tax be deducted from my monthly pension before it arrives in my Wise account , or must I pay the tax back via Direct Debit?
