Part 4/9:
To illustrate these concepts, let’s consider a hypothetical case involving Martin, a French citizen living and working in Berlin, seeking clarity on his investment tax obligations.
Figuring Out Tax Residency
For Martin, the first step is determining his tax residency status. According to the information from the PWC database, individuals are generally regarded as tax residents in Germany if they maintain a dwelling or, conversely, spend the majority of the year there. Since Martin has established his life in Berlin, he is likely considered a German tax resident unless there are exceptional circumstances, such as family ties in another country.