German tax authorities enforce residency and international account reporting

German tax regulations regarding residency and international financial reporting are subject to strict compliance requirements. For individuals emigrating from Germany, simply deregistering with local authorities is insufficient to end unlimited tax liability. Under Section 8 of the Fiscal Code (Abgabenordnung), a tax residence is determined by actual circumstances—specifically whether an individual maintains a dwelling they intend to continue using. Factors such as selling, renting, or transferring a property to relatives are critical in determining whether a residence is considered abandoned.

Additionally, the automatic exchange of financial account information via the Common Reporting Standard (CRS) continues to facilitate the transfer of data between participating nations. Under the Financial Account Information Exchange Act, foreign financial institutions report data—including names, addresses, tax IDs, and account balances—to local tax authorities, which is then shared with the German tax administration. This exchange includes information on savings accounts, investment portfolios, and dividends held in participating foreign states, ensuring that income from international assets is visible to German tax authorities.