Tax Return in Germany for Foreigners: Deadlines, ELSTER, and Refunds

Tax returns in Germany (Steuererklärung) are not required for every employee, but for foreigners it is often worth understanding them in the very first year: relocation, maintaining two households, commuting, education, work equipment, and income from another country can affect your tax situation. According to Destatis, among employees who filed a return for 2021 and received a refund, the average refund was 1,172 euros.

This article explains the general logic. In more complex situations such as self-employment, income from several countries, investments, property, divorce, inheritance, or large benefits, it is better to consult a Steuerberater or a Lohnsteuerhilfeverein.

Who is required to file a tax return

An ordinary employee in Germany often does not have to file an Einkommensteuererklärung: the employer already withholds Lohnsteuer from the salary, and the details are visible in the payslip. But the obligation arises if there are additional factors.

Common cases of mandatory filing:

• you received income from which German wage tax was not withheld, and the amount exceeded 410 euros;
• you received payments affecting Progressionsvorbehalt, for example Kurzarbeitergeld, Arbeitslosengeld, Krankengeld, Mutterschaftsgeld, or Elterngeld, and the amount exceeded 410 euros;
• you had several employers at the same time, except for certain mini-jobs if the conditions were met;
• you or your spouse chose the tax class combination III/V or IV with factor;
• there was a Freibetrag in ELStAM during the year;
• you received income abroad, for example in the year of relocation, from rental income, or from work outside Germany;
• you are a freelancer, self-employed, or running a business;
• the Finanzamt sent you a letter requiring you to file a return.

If a letter from the Finanzamt has arrived, you cannot ignore it: the deadline and response format are stated in the letter itself.

When filing is voluntary but beneficial

If you are not required to file, you can do so voluntarily. This is called Antragsveranlagung. For voluntary filing, a four-year deadline usually applies: in 2026, you can still file returns for 2022, 2023, 2024, and 2025.

Voluntary filing is especially often worthwhile if you had:

• commuting expenses;
• a move for work reasons;
• work equipment, furniture, or a home office;
• education, German language courses, or professional exams;
• job application expenses;
• two households (doppelte Haushaltsführung);
• donations;
• childcare expenses;
• medical expenses above your individual reasonable burden;
• the year you moved to Germany or left Germany.

A refund is not guaranteed. Sometimes a voluntary return results in zero or even additional tax due, so before filing it is useful to calculate the result in ELSTER or a tax program.

Which expenses reduce tax

In Germany, people usually speak not about “getting a receipt refunded” but about “reducing taxable income.” The higher the recognized expenses, the lower the basis for calculating Einkommensteuer.

Werbungskosten: work-related expenses

For employees, the Arbeitnehmer-Pauschbetrag applies. In 2025, it is 1,230 euros and is usually already taken into account in payroll. This is not the amount refunded, but a standard deduction from income. A tax return becomes especially interesting when your real work-related expenses are higher than this threshold.

Werbungskosten may include:

• commuting from home to your primary workplace;
• work equipment and part of internet or phone costs if they are genuinely used for work;
• professional courses and exams;
• application expenses;
• business trips;
• a move for work-related reasons;
• maintaining two households;
• a home office or dedicated workspace, if the conditions fit the tax rules.

Sonderausgaben: special expenses

Sonderausgaben may include:

• part of insurance and pension contributions;
• church tax;
• donations;
• childcare costs within the permitted limits;
• certain education expenses if they do not count as Werbungskosten.

Sonderausgaben have their own rules, limits, and automatic data transfers from insurers or employers. Not every payment is taken into account in full.

Außergewöhnliche Belastungen: extraordinary burdens

These are expenses that arise due to special circumstances and exceed your individual zumutbare Belastung. Examples:

• medical expenses not covered by insurance;
• costs related to disability or care;
• supporting relatives in need, if the conditions are met;
• certain expenses due to severe family or medical circumstances.

These expenses are sensitive to detail. Keep invoices, prescriptions, proof of payment, and insurance decisions.

How to file a Steuererklärung

There are four main ways to do it. The best choice depends on language, the complexity of your situation, and your budget.

Method	Best for	What to keep in mind
Mein ELSTER	People ready to complete German forms on their own	Official and free, but the interface is bureaucratic
Tax software or online service	Employees with a simple or moderately complex situation	Often easier than ELSTER, but the price and terms depend on the service
Lohnsteuerhilfeverein	Employees, pensioners, and some private individuals without complex business income	Requires a membership fee; legal assistance is limited and not suitable for self-employed people with business income
Steuerberater	Freelancers, business owners, people with foreign income, or complex cases	More expensive, but suitable for individual tax advice

Mein ELSTER

Mein ELSTER is the official portal of the German tax administration. Through it, you can file an Einkommensteuererklärung, receive electronic messages, and use data already submitted by your employer, insurer, and other organizations.

It is better to register in advance: obtaining access to the account and certificate can take time. For your first tax return, this is especially important because without portal access you will not be able to send forms online quickly.

Tax software

Commercial programs usually ask questions in plain language, help you avoid missing common deductions, and transmit the return through the ELSTER interface. Before choosing one, check:

• whether the service supports your tax year;
• whether it offers an English or Russian interface;
• whether it is suitable for freelancing, foreign income, or property;
• when payment is charged;
• whether you can calculate the result before submitting.

Do not rely on promises about an “average refund” as a forecast for your case: the result depends on salary, tax class, expenses, and tax already withheld.

Lohnsteuerhilfeverein

A Lohnsteuerhilfeverein helps its members with tax returns, but it does not replace a Steuerberater in every case. Such associations are usually suitable for employees, pensioners, and people with limited types of income. If you have business activity, freelancing, or complex foreign income, the right to receive advice may be limited.

Steuerberater

A Steuerberater is the right choice when mistakes can be expensive: self-employment, business activity, Umsatzsteuer, income from several countries, investments, property, a change of tax residence, or a dispute with the Finanzamt. The price depends on the Gegenstandswert, the amount of work, and the Gebührenverordnung, so a universal price quoted in an article is rarely reliable.

Documents for a tax return

Prepare your documents before you start filling everything out:

• Lohnsteuerbescheinigung from your employer;
• Steuer-ID and, if available, Steuernummer;
• IBAN for the refund;
• certificates from health insurance, pension insurance, and other insurers;
• benefit documents: Elterngeld, Arbeitslosengeld, Kurzarbeitergeld, Krankengeld;
• proof of income from abroad;
• receipts and invoices for work-related expenses;
• rental contract, utility documents, and records for a second household, if applicable;
• documents relating to children, childcare, and Kindergeld;
• donation receipts;
• your previous Steuerbescheid, if you have one.

Your Steuer-ID is an 11-digit identification number. It usually arrives after Anmeldung and stays with the person permanently. The Steuernummer is assigned by the Finanzamt; for your first tax return, you may not have one yet.

Filing deadlines in 2026

The deadline depends on whether you are required to file and who prepares the return.

Situation	Deadline
Mandatory return for 2025 without an adviser	By July 31, 2026
Mandatory return for 2025 through a Steuerberater or Lohnsteuerhilfeverein	Usually until the end of February of the second following year; for 2025, because of the calendar, the deadline effectively shifts to early March 2027
Voluntary return	Usually until the end of the fourth year after the tax year
Finanzamt request	The deadline is stated in the official letter

If you realize you will not make the deadline, you can request a Fristverlängerung from the Finanzamt. It is better to do so before the deadline expires and with a clear reason.

What happens after submission

After you file, the Finanzamt processes the return and sends a Steuerbescheid. It shows whether the office agreed with the calculation, whether there is a refund or additional payment due, and which expenses were accepted.

If you disagree with the Bescheid, you can file an Einspruch within the prescribed deadline. Do not postpone checking the letter: deadlines in tax documents are usually applied strictly.

Any refund is transferred to the specified bank account. The processing time depends on the federal state, the workload of the Finanzamt, the complexity of the return, and whether additional documents are required.

Common mistakes foreigners make

• Treating the Arbeitnehmer-Pauschbetrag as a direct cash refund.
• Failing to declare income from another country in the year of relocation.
• Ignoring a letter from the Finanzamt because the return “seems voluntary.”
• Choosing a service that does not support freelancing or foreign income.
• Not keeping receipts and proof of payment.
• Confusing Steuer-ID and Steuernummer.
• Sending the return on the last day without first registering with ELSTER.
• Not checking the Steuerbescheid after receiving it.

FAQ

Question	Answer
Does a foreign employee have to file a tax return?	Not always. If you are a regular employee with one salary and no special factors, there may be no obligation. But foreign income, benefits, several employers, or a letter from the Finanzamt change the situation.
Can I file in English?	The official forms are in German. Some commercial programs offer an English interface, but the final submission still goes into the German tax system.
How much can I get back?	There is no universal amount. The refund depends on tax already withheld, expenses, your family situation, and your tax class.
Do I need to keep receipts?	Yes. Even if part of the data is transmitted electronically, the Finanzamt may request supporting documents.
What if I am a freelancer?	The rules are more complex for the self-employed: besides Einkommensteuer, there may also be Umsatzsteuer, Gewerbesteuer, and Vorauszahlungen. It is better to set up the process with a tax adviser or appropriate software.
Can I file old returns?	If the return is voluntary, a four-year deadline usually applies. In 2026, you can still file for 2022 through 2025.