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TAXES

Reader question: How can I find a German tax advisor?

The German tax code is complex enough to confound native Germans and foreigners alike. Finding an expert to handle it for you has many advantages—but how do you find the right one?

A calculator next to a tax return form.
A calculator next to a tax return form. Many people can get money back from submitting a tax return. Photo: picture alliance / dpa | Oliver Berg

Even in “normal” years, when you’re not having to work out the tax implications of ‘home office’ or the reduced working hours of Kurzarbeit, filing a tax return in Germany is daunting. Still, it often pays to do it and a good tax advisor – especially one who speaks English or your native language – can pay off. But how do you find that person and what should you be looking for?

Price is comparable, so look for other things

Tax advisory is a strictly regulated profession in Germany, to the point where tax consultants, or Steuerberater, have a fixed schedule of the rates they’re allowed to charge for certain services. Their rates are also capped depending on what your income is. A complicated case will still obviously be more expensive than an easier one, simply because it’ll take longer. If you make more money, you may also be charged more. But due to price regulations, one tax advisor isn’t able to charge significantly more or less than another for a similar case. So you’re free to let go of the stress of finding the best price and focus on finding the right tax advisor for the services you need.

“If they’re called a ‘Steuerberater’ and they have a stamp of accreditation, that person is qualified to do your tax return. Simple,” says Kathleen Parker, Managing Director of Red Tape Translation. “Now they may offer other services or forms of advice, like bookkeeping or legal advice. These are different and for those, they’re free to charge you what they like. But the price of doing and submitting your tax return is tightly regulated.”

READ ALSO: EXPLAINED: How to save money on your taxes in Germany

Finding someone familiar with international cases

As with so many things in Germany, finding help in a language you speak well is a priority when looking for the right tax advisor. But beyond navigating the technical terminology, you may well need someone familiar with international cases. That’s especially true because German residents who receive income from abroad, whether they’re self-employed doing work for international clients, or they own investments abroad, will typically have to file a tax return declaring it for that year.

“Check the LinkedIn and Xing profiles of different tax consultants and have a look at where they may have studied or worked before. That should give you some idea about whether they speak either English or your native language, and if they are familiar with particular international topics,” says Dirk Maskow, an independent tax advisor based in Berlin and Düsseldorf. “If they’re bilingual, there’s a good chance they’ll have their website in both languages.”

Depending on the firm, the tax advisor may have a lawyer on staff or be in a partnership with one. If so, check their list of available services. Legal advice on international tax cases will often be more expensive than similar advice for domestic cases, so it should be easy to spot in the price list if the firm offers such a service. If they do, contact them and ask if they might be able to handle your specific case. Certain relocation apps and services, such as Ark One, RelocateMe, or Settly, may also work with specialised tax advisors who have the expertise for your individual case. Some websites, like Steuerberater Guru, will even help you compare advisors.

READ ALSO: Everything you need to know about your German tax return in 2022

The trust factor

Once you’ve found someone with the credentials you need, what’s next before you sign on?

“It’s not surprising, but they best way to find the right tax advisor for you is often through the recommendation of a friend who is satisfied with the one they have,” says Maskow. “That’s because tax consulting has a lot to do with trust. That’s even truer if the language and country is new to you and you don’t always know what’s going on. Make sure you have an initial discussion – not just to see if the tax advisor is able and willing to deal with your case, but to make sure you have a good overall rapport.”

READ ALSO: Everything you need to know about paying taxes in Germany

Vocabulary

Tax consultant or advisor – (der) Steuerberater/(die) Steuerberaterin

Tax – (die) Steuer

Tax return or tax declaration – (die) Einkommensteuererklärung

Client – (der) Mandant / (die) Mandantin

Income – (die) Einkünfte

Capital assets – (die) Kapitalvermögen

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For members

GERMAN CITIZENSHIP

Does hiring a lawyer speed up your German citizenship application?

Contracting a lawyer to help you with your German citizenship application isn't likely to help you get an appointment faster. But it may help you in other ways, particularly if your citizenship authority starts ghosting you.

Does hiring a lawyer speed up your German citizenship application?

With the German naturalisation law reform set to come into force on June 26th, many foreign residents in Germany are considering applying. One question that readers have asked The Local is: Will contracting a lawyer with good contacts within citizenship and immigration authorities speed up your German citizenship application?

READ ALSO: Elation and worry as German citizenship law passes final hurdle

Strictly speaking, no. That in and of itself won’t do it – according to legal experts The Local has spoken to.

Immigration lawyers Andreas Moser and Sven Hasse both say the best way to increase your application’s chances of speedy approval is to make sure the application is complete and well-organised. Moser recommends that paper applications are filed with an index of documents and that files submitted with electronic applications are neatly scanned and clearly labelled.

“I’ve had clients who’ve done it like that and they sometimes get their citizenship – even in busy offices like Munich – in three months,” says Moser. “The most important thing is to only apply when you’ve met all the conditions, have all the paperwork, and you can present it in one folder.”

You may wish to have a lawyer go over your documents to help ensure that neat application – or even perhaps to draft a cover letter anticipating and answering any questions the authorities might have.

Such explanations might be to detail a short break in your income, or address why your children might have a different last name to you if they’re included in your application.

However, having a lawyer to help you do this isn’t necessary in many cases. Moser also advises that it’s unlikely to save you any time versus simply doing the application yourself, as your lawyer will have to go through all the application details with you anyway – and it can be costly.

READ ALSO: How to get a speedy response on your German citizenship application

When should I definitely consider a lawyer?

Moser’s recommendation, in most cases at least, is to consider a lawyer only once it’s clear that the authorities aren’t considering your neat and complete application in a timely manner and you want to challenge them.

Normally, this shouldn’t be until at least three months have passed without word on the status of your application. At that point you can threaten a complaint through the administrative court. Such a complaint is known as an Untätigkeitsklage and you can draft a letter to the citizenship authority yourself stating that if it does not act on your application, you will file the complaint. You can also ask a lawyer to help you with this threat letter.

Moser says that much of the time, this threat letter works – and the applicant will rarely have to actually file the Untätigkeitsklage. If you do choose to file it though, it’s at this point that Moser advises you seek out a lawyer to draft and file the complaint on your behalf. This process costs €500 in court fees and more in legal fees, although if the court finds in your favour – the authority then has to send this money back to you.

Finally, both Hasse and Moser say you should consider legal advice if your case is complicated. This might include a previous criminal conviction carrying a sentence of slightly more than 90 days, or for uncertain or interrupted periods of residence. This could include people who’ve travelled to their home countries for an extended period of time to look after ailing relatives or employees of German companies who’ve been posted outside of Germany for an extended period of time due to their jobs.

READ ALSO: When to consider legal action for your German citizenship application

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