German Tax Returns for Individuals and Sole Traders (Gewerbe)

Yes, if you earn income taxable in Germany – for example from employment, the provision of services, rental income or business activity. The annual filing obligation (Einkommensteuererklärung) with the Finanzamt applies to German tax residents and non-residents alike. The key step is establishing your tax residency status, i.e. whether you have unlimited or limited tax liability.

A sole trader (Gewerbe, Einzelunternehmen) files an annual income tax return (Einkommensteuer) together with an income-and-expense statement (Einnahmen-Überschuss-Rechnung – EÜR). On top of that come the annual VAT return (Umsatzsteuer-Jahreserklärung) and the trade tax return (Gewerbesteuererklärung). The return can also account for depreciation, operating costs, investments and contributions, among other things.

Yes – eligibility for joint assessment with a spouse (tax class III/V) depends on your circumstances and is worth verifying before you file. Your return can also include the allowances and deductible expenses available to you, such as commuting costs, per diems, the cost of maintaining a second household and insurance.

The process starts with an analysis of your income sources, costs and family circumstances, followed by compiling documents such as the Lohnsteuerbescheinigung, invoices, contracts, payment confirmations, insurance documents and evidence of expenses. The completed return is filed electronically with the relevant Finanzamt, which then issues a tax assessment (Steuerbescheid) showing either a refund or an additional payment. Optima Prime Consulting assembles documents and coordinates communication. German returns, corrections, appeals and representation are handled by appropriately authorised tax partners.

Optima Prime organises documents, communication and administrative support. Individual tax advice, preparation of German tax returns and representation in tax matters are provided by appropriately authorised partners.