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Germany: how residence and citizenship work

Residence tests, reporting duties, social security, living base and citizenship for Germany, with the official source for each.

Short answer

Germany applies unlimited income tax liability to individuals who have a residence (Wohnsitz, §8 AO) or habitual abode (gewöhnlicher Aufenthalt, §9 AO) in Germany, under §1(1) EStG. A dwelling kept and used under circumstances that suggest continued use can be enough on its own, so a day count is not the only test; a continuous stay of more than six months is always treated as a habitual abode from its start.

Key facts

Tax basisResidence-based
Tax year1 January to 31 December
Taxes citizens abroadNot as a general rule
Residence tests recorded3
RegionEurope

How Germany decides tax residence

Each test is recorded separately with its own ID. Meeting or missing one test does not settle residence on its own.

DE-RES-01Ties testNot professionally reviewed

Residence (Wohnsitz) under §8 AO

A person has a residence where they hold a dwelling under circumstances suggesting they will keep and use it. The test looks at the dwelling and how it is kept, not at a number of days, so it can apply even with short stays.

Source: § 8 AO WohnsitzChecked: November 8, 2026
DE-RES-02Day countNot professionally reviewed

Habitual abode (gewöhnlicher Aufenthalt) under §9 AO

A person has a habitual abode where they stay under circumstances showing they are not there only temporarily. A continuous stay in Germany of more than six months is always treated as a habitual abode from its start, and brief interruptions are disregarded. The six-month rule does not apply to stays solely for visits, recreation, medical cure or similar private purposes lasting no longer than one year. The law states months, not a day number.

Source: § 9 AO Gewöhnlicher AufenthaltDay method: not recordedChecked: November 8, 2026
DE-RES-03CitizenshipNot professionally reviewed

Extended unlimited liability for German public employees abroad

German citizens without a residence or habitual abode in Germany are still treated as having unlimited liability if they work for a German public-law employer and are paid from a German public fund; household family members can be covered under similar conditions. This applies only to that group, not to German citizens in general.

Source: § 1 EStG SteuerpflichtChecked: November 8, 2026

Arriving, leaving and part years

On giving up residence or habitual abode (DE-RES-01, DE-RES-02), §6 AStG treats shareholdings covered by §17 EStG as sold at fair value if the person had unlimited liability for at least seven years in total within the twelve years before. On application the tax can be paid in seven equal annual instalments, generally with security, and the claim lapses if unlimited liability resumes within seven years and the other conditions are met.

Reporting duties to check

  • Exit tax follow-up under §6(5) AStG. Relevant events must be reported electronically within one month, and each year by 31 July the person must confirm their current address and that they still hold the shares. Source
  • Application for unlimited liability under §1(3) EStG. People without a German residence or habitual abode who have German-source income can apply to be treated as having unlimited liability, mainly where at least 90 percent of their income is subject to German income tax. Source

Social security

Within the EU, a person is covered by one country's social security system at a time, and which one depends on work situation and residence, not nationality. Check the EU coordination rules and any bilateral agreement for work involving non-EU countries.

Living base

EU citizens can move to Germany under EU free movement rules, with permanent residence after a continuous 5-year period of legal residence. Others generally need a visa and a residence title for purposes such as work, study or family. A residence title does not decide tax liability, which follows §8 and §9 AO.

How visas, permits and tax residence differ

Citizenship

Under §10(1) StAG, naturalisation by entitlement requires five years of lawful habitual residence in Germany, among other conditions; the former three-year route in §10(3) has been repealed. The conditions in §10 do not include giving up a previous nationality, and the former rule in §25 StAG on losing German citizenship by acquiring a foreign one has been repealed.

Read the citizenship guide

Questions to take to a professional

  1. Could a dwelling I keep in Germany count as a residence under §8 AO, even if I spend little time there?
  2. Would my stays in Germany form a continuous stay of more than six months under §9 AO?
  3. If another country also treats me as resident, how does the relevant tax treaty tie-breaker apply?
  4. Could §6 AStG apply to my shareholdings if I give up my German residence, and would instalments or the return rule apply?
  5. Would an application under §1(3) EStG be relevant to my German-source income?
  6. Which social security system covers my work pattern under EU rules or a bilateral agreement?

Official authorities

Sources

Guides that mention Germany

Leaving a country: questions to settle before you goRecords that show where you were and where your life isSecond citizenship: what changes and what doesn't

Other countries in Europe

🇧🇬 Bulgaria🇨🇭 Switzerland🇨🇾 Cyprus🇨🇿 Czechia🇪🇪 Estonia🇪🇸 Spain🇫🇷 France🇬🇧 United Kingdom
Countries covered
Germany
Sources
7 sources listed above
Tax year
Current rules as checked
Review
Not professionally reviewed
Sources checked November 8, 2026