Living in Germany – working in Switzerland – working in Germany – worked in the US – American citizens – a new administration and probably (hopefully) some changes to the tax code. Sounds like a recipe for fun when it comes to taxes.
Disclaimer: We’re not tax accountants or lawyers over here at Tapxe just two expats trying to work and live abroad. What I offer below is just our experience and understanding of our tax situation. This article is not a how to guide on how to avoid paying taxes, but rather is meant to help you make sure you ask the right questions and have a place to start from when you are dealing with this issue yourself.
Our situation is as follows: both of us live in Germany. I quit my job in the States several months before moving to Germany and have been working in Basel, Switzerland starting in December. My wife works for the German subsidiary of her small (< 20 employees) company in the States. Unlike expats coming over through large multinational companies well versed in expat transfers and tax issues we’re pretty much figuring it out ourselves.
Financially what are we preparing for? Paying taxes everywhere. But there’s good news – the US offers foreign tax credits (consult your tax advisor) and Germany and Switzerland have treaties to avoid double taxation. For the purpose of this discussion I’m just going to focus on Germany and Switzerland. Ask me about the US in April 2009!
To be continued…
