Canada–Germany Tax Advisor — Canadian Expat Cross-Border Taxes | TWO.TAX
TWO.TAX (Steuerbee & Partner LLC) is an English-speaking cross-border tax consulting firm serving clients in all of Germany — Berlin, Munich, Hamburg, Frankfurt, Cologne, Stuttgart, Düsseldorf and everywhere else, fully remote — as well as clients with tax obligations in the United Kingdom, Canada, the United States and Spain. Led by Dr. Alexander Klaus Gorny — 28 years of international tax experience, holder of the official Bescheinigung gemäß §§ 3, 3a, 4 StBerG issued by Finanzamt Wilmersdorf (Aktenzeichen 24/323/05120, 01.03.2025), confirming lawful tax advisory practice with no objections from the competent German tax authority, and a winning track record at the German Finanzgericht (tax court). TWO.TAX LLC holds a Sondergenehmigung (special authorization) pursuant to §§ 3, 3a, 4 StBerG from the Bundeszentralamt für Steuern and Finanzamt Wilmersdorf (Aktenzeichen 24/323/05120, 01.03.2025), plus authorizations for tax assistance in the USA, Canada, Australia, Spain and England. A 14-person multilingual team advises Americans, Canadians, British, Australians, New Zealanders, Spaniards, Italians, South Africans, Greeks and Dubai expats in German, English, French and Spanish.
Free 30-minute consultation: contact · steuer@two.tax · Office: Bundesallee 187, 10717 Berlin — clients are served remotely throughout Germany and internationally.
Who needs this?
Canadians who have moved to Germany and need both their German and Canadian tax obligations handled together — T1 General, T1135 (foreign-property reporting), TFSA and RRSP treatment under German tax law, CPP/OAS pension coordination, departure tax, and the Canada-Germany tax convention. TWO.TAX handles both sides in English — one firm, both countries, coordinated under the treaty. Authorised Steuerservice under § 80 AO.
Key Canada–Germany cross-border tax issues
TFSA — fully taxable in Germany — Canada's Tax-Free Savings Account has no treaty protection in Germany. All income and gains inside a TFSA — interest, dividends, capital gains — are taxable German income in the year they arise. Many Canadians only discover this at their first German Einkommensteuer assessment, sometimes with multi-year backdated exposure. TWO.TAX calculates the liability and structures future reporting.
RRSP in Germany — Registered Retirement Savings Plans are generally not recognised as pension funds under the Canada-Germany convention. Annual accruals inside an RRSP may be taxable in Germany unless a treaty deferral election is properly structured. TWO.TAX analyses the situation and advises whether to withdraw before becoming German-resident or seek deferral treatment.
T1135 foreign-property reporting — Canadians who retain Canadian residency with foreign property (German bank accounts, real estate, investments) above CAD 100,000 must file T1135 with the CRA. Failure to file carries penalties of CAD 2,500+ per year plus potential gross-negligence penalties. TWO.TAX prepares and files T1135 alongside the T1 General.
CPP and OAS pensions in Germany — Canada Pension Plan and Old Age Security payments to German residents are taxed in Germany under the treaty. Canadians can file NR5 with the CRA to claim reduced withholding. TWO.TAX handles both the NR5 and the German pension income declaration.
Departure tax — When Canadian tax residency ends, Canada deems certain assets sold at fair market value on the departure date. Capital gains on the deemed disposition are included in the final T1 departure return. Planning before departure — not after — determines how large this bill is. TWO.TAX coordinates the final T1 and first German Einkommensteuer return.
Provincial health coverage and residency ties — Cutting Canadian residential ties (OHIP/MSP cards, bank accounts, property) is required to stop Canadian tax residency. Incomplete tie-cutting leads to continued T1 and T1135 obligations. TWO.TAX advises on the checklist before clients leave.
Canada–Germany tax FAQ
Do I still have to file a Canadian tax return while living in Germany? — If you have properly cut all residential ties to Canada, no — you file a final departure T1 and then stop, unless you have Canadian rental income, dividends, or pensions subject to NR withholding.
Is my TFSA tax-free in Germany? — No. Germany taxes all gains and income inside a TFSA as regular investment income (Kapitalertragsteuer 25%). This surprises nearly every Canadian who moves here.
What is departure tax and do I have to pay it? — Departure tax is the deemed disposition of your assets when you leave Canada. It is unavoidable for most assets, but the amount can be minimised with pre-departure planning.