Head of International Corporate Law and Fintech Practice
Expert in fintech, crypto, and international corporate law with over 20 years of experience. Specializes in crypto licensing (VASP/CASP), iGaming business support, and international structuring, asset protection, and OSINT analytics for risk assessment and due diligence.
TAX ADVICE IN GERMANY
Business taxes in Germany
- VAT (Umsatzsteuer) is charged for the sale of goods, performance of works, provision of services based on their value. VAT is indirect tax because it is ultimately paid by consumers. Types of rates:
- total – 19%;
- reduced – 7% (for certain types of goods/services, for example, passenger transportation, food products, etc.);
- 0 % – on export operations.
- Corporate tax (Körperschaftssteuer) – 15% of the annual profit and additionally a solidarity surcharge of 5.5% of the calculated amount. The solidarity surcharge is a special levy introduced in 1995 to finance German reunification. The size of the solidarity allowance is 5.5% of the 15% corporate tax, i.e. 0.83% of the annual profit. The total cost of the corporate tax and solidarity surcharge is 15.83%. The tax period is 1 calendar year.
- Industrial tax (Gewerbesteuer). The sales tax rate depends on two components:
- tax index (statewide in the amount of 3.5%)
- the sales tax rate (depends on the location, cannot be less than 200% of the tax index).

Capital gains tax (Kapitalertragsteuer). Interest, dividends from deposits and profit from the sale of securities are subject to capital gains tax. Capital gains tax is withheld directly when capital gains are credited to the source – usually a bank – and remitted to the tax authorities. The tax rate is 25% and an additional solidarity surcharge of 5.5%.
Basic taxes for individuals
- Income tax (Einkommenssteuer). This tax is paid by both self-employed persons and employees. Taxable income from:
- freelance;
- hired labor. Taxation of income from work under an employment contract is a special form of income tax, which is called Lohnsteuer and is withheld by the employer;
- activities of individual entrepreneurs;
- agriculture and forestry;
- fixed assets;
- rent and leasing;
- other incomes defined by the Income Tax Law, in particular, pensions.
The tax rate depends on
- amount of income;
- the class to which the person belongs.

The following categories of persons are distinguished by class:
- The first class of taxation is given to unmarried and divorced persons.
- The second class of taxation is assigned to single parents, if they live together with their child, are not married, do not share a household with another adult.
- The third class of taxation is assigned to persons who are married, if one of the spouses has a significantly higher income.
- The fourth class of taxation is assigned to spouses who have approximately the same level of income.
- The fifth tax class is assigned to one of the spouses, if the other spouse with a higher income level belongs to the third tax class.
- The sixth class of taxation is chosen by persons who work at several part-time jobs.
- Church tax (Kirchensteuer) – 9%. In Bavaria and Baden-Württemberg – 8%.
- Solidarity tax (Solidaritätszuschlag) – 5.5% (for everyone who earns more than 9,300 euros per month).
- Pet tax (Hundesteuer) – 150 – 300 euros. Depending on the size and breed of the dog.
Optimization of taxation in Germany

What are the duties of a tax lawyer of Prykhodko and Partners law firm:
- Consulting on taxes in Germany;
- Calculation of taxes in Germany;
- Preparation of tax documents in Germany;
- Tax representation in Germany;
- Settlement of tax disputes in Germany.
Representation in the tax authorities in Germany by Prykhodko and Partners law firm includes consulting, preparation of all necessary documentation, relations with German and EU tax authorities on Umsatzsteuer, Körperschaftssteuer, Gewersteuer, Kapitalertragsteuer, etc.
Calculate the cost of services
1 question
Are you currently in Ukraine?
2 question
Are you currently in Germany?
3 question
Do you need advice on Umsatzsteuer?
4 question
Do you need advice on Körperschaftssteuer?
5 question
Do you need advice on Gewersteuer?
6 question
Do you need advice on Kapitalertragsteuer?
7 question
Do you need advice on other taxes?
8 question
Do you need a consultation urgently?
You may also need:
Company Registration in the UAE
Read moreOpening a crypto-friendly account
Read moreBrand name registration
Read moreOPENING A BANK ACCOUNT IN ESTONIA
Read moreOPENING A BANK ACCOUNT FOR A GAMBLING BUSINESS
Read moreREGISTRATION OF A BUSINESS (FIRM) IN POLAND
Read moreOPENING A BANK ACCOUNT IN GREAT BRITAIN
Read moreBANK REGISTRATION IN CYPRUS
Read moreREGISTRATION OF A BUSINESS (FIRM) IN THE UK
Read moreCompany Registration in Austria
Read moreREGISTRATION OF A BUSINESS (FIRM) IN THE CZECH REPUBLIC
Read moreOPENING A BANK ACCOUNT IN AUSTRIA
Read morecall back
during the day
Compensation for moral, material damage
Protection of honour, dignity, and business reputationContract Development for Business and Legal Entities
Licensing of business activities
Compensation for moral, material damage
Legal services in the field of cryptocurrency and blockchain
REGISTRATION OF COMPANIES AND OPENING OF BANK ACCOUNTS
Sale and purchase of ready-made firms
Grants and attracting investment
Business registration and support in Great Britain
Business registration and support in Switzerland
Business registration and support in the EU
Business Registration and Support in the Gulf Countries (GCC)
Business registration and support in Turkey
Business registration and support in USA
Lawyer for administrative cases
Legal services for medical businesses and doctors
Protection of honour, dignity, and business reputation
Real estate transaction support
Escort of the tender participant
Trial lawyer: support and defense in court
European Court of Human Rights (ECHR)
