(2022) What is considered foreign income?

You can earn foreign income from various types of income. The type and amount must be determined according to German tax law in accordance with § 34d EStG. The deduction of income-related expenses and business expenses is therefore based on the Income Tax Act.

• For income from employment, the work must be performed abroad. It can also be utilised abroad without being carried out in Germany.
• For income from self-employment, the work must be performed or utilised abroad (e.g. authors' rights).
• For income from business operations, the income must be generated through a business establishment located abroad.
• For income from agriculture and forestry, the land cultivated must be located abroad.
• For income from capital assets, the capital assets must be secured by foreign property, for example.
• For income from renting and leasing, the property must be located abroad or the rights (e.g. authors' rights) must be granted for use abroad.