Hello,
I'm Mike and have a wife and 2 kids (3.5 years and half a year old).
Looks like I get the opportunity to move over from Germany to NY in the next 18 months.
Currently I'm trying to figure out some questions and thought someone of you has an idea to it.
1) We currently own a flat in Germany and are uncertain what to do with it. From my point of view I would like to rent it instead of selling it. But, I don't know how to handle it from the states? Does anyone else ever has done the same thing? What about taxes of the income from renting it?
2) Moving from Germany to NY, do I need to have a complete new drivers license?
3) When will it be allowed for my wife to work, if ever?
4) What is the real difference between public and private schools?
5) Are there any hidden things when we need to move back before or after 5 years?
Would be great if someone can share his thoughts on my questions.
Thanks,
Mike
Trying to find a lot of answers.....
It would be better if you post your questions in the relevant country forum (USA and Germany).
For the first question (about Germany), I can give you an answer - the others are not within my expertise:
- Managing a rental flat from abroad is difficult. If you don't have a nearby relative or close friend who does it for you (perhaps for a fee), you should engage a professional property management company (Hausverwaltung) and/or a property agent (Immobilienmakler). Of course this will eat some of your rental income.
- Income within Germany remains taxable in Germany even if you leave the country completely (beschraenkte Steuerpflicht). Whether you also need to tax it in USA is probably specified in the bilateral tax treaty (if one exists) - hopefully you only need to pay tax once. Get a good, internationally versed tax advisor (Steuerberater) in any case!
I have done the above (but not from USA) and would think twice before doing it again.
Hi Mike,
Great question, however as Beppi suggested, it would be best if you post your questions in the relevant destination. This way you will have chances to get better answers from the people living in that region.
Here is the link to NY forum
https://www.expat.com/en/destination/no … /new-york/
Good luck
Z
Hi Mike,
Article 6 of the Convention on Tax between the United States and Germany provides that the income from "immovable" property in Germany will be taxed in Germany and not in the USA.
That said, the USA is one of the many countries that require you to REPORT you "worldwide income", so while your rental income won't be taxed in the USA you must report it to the IRS on your annual 1040 income tax return. It will not be taxed per se, but it may have the effect of raising your TOTAL INCOME, in the final calculation and may put you into the next higher tax bracket in some cases, which would have the effect of forcing you to pay a slightly higher tax rate on your US sourced income.
At any rate, you need to know many different things about taxes so you should really download the Convention here:
http://www.irs.gov/pub/irs-trty/germany.pdf
Regarding schools in the USA, the public school system is excellent with the possible exception of the inner city schools where violence may be a problem. Private schools are expensive, and very elitist. They are frequented by the sons and daughters of the wealthiest Americans.
Cheers,
James Expat-blog Experts Team
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