As an American this is kind of wild to me. Of course, plenty of Americans live in one state and work in another, and I think they end up paying income taxes in both states (assuming both states have income tax), although there may be some deduction available for taxes paid to another state. How does this work for income taxes between the two nations?
It’s a complex topic cause… it depends. I know a guy that lives in Germany and works in Luxembourg (he is the coffee delivery guy for a lot of people xD). If I remember correctly, he pays taxes in Luxembourg and has to fill out a form each year for the German tax office that he or more exactly his company is paying his taxes in Luxembourg. Cause one big thing in all the european countries I know is, that as an employee your workplace pays your salary based taxes.
Most social contributions like pension payment is also a Luxembourg thing, but health care is a mixture. He pays the biggest part in Luxembourg but has to do a little extra payment in Germany, so he can visit a German doctor like someone that pays his healthcare only in Germany.
But it’s different for every country.
And also another funny thing I know: The US is the only country in the world where you have to pay taxes just cause you’re a citizen. No matter if you’re living and/or working in the US. So for example a US citizen working and living in Germany still has to pay a (small) amount of US taxes.
For example if I would work and live in Italy I would only pay taxes in Italy even though I have a non Italian passport.
As an American this is kind of wild to me. Of course, plenty of Americans live in one state and work in another, and I think they end up paying income taxes in both states (assuming both states have income tax), although there may be some deduction available for taxes paid to another state. How does this work for income taxes between the two nations?
It’s a complex topic cause… it depends. I know a guy that lives in Germany and works in Luxembourg (he is the coffee delivery guy for a lot of people xD). If I remember correctly, he pays taxes in Luxembourg and has to fill out a form each year for the German tax office that he or more exactly his company is paying his taxes in Luxembourg. Cause one big thing in all the european countries I know is, that as an employee your workplace pays your salary based taxes. Most social contributions like pension payment is also a Luxembourg thing, but health care is a mixture. He pays the biggest part in Luxembourg but has to do a little extra payment in Germany, so he can visit a German doctor like someone that pays his healthcare only in Germany.
But it’s different for every country.
And also another funny thing I know: The US is the only country in the world where you have to pay taxes just cause you’re a citizen. No matter if you’re living and/or working in the US. So for example a US citizen working and living in Germany still has to pay a (small) amount of US taxes. For example if I would work and live in Italy I would only pay taxes in Italy even though I have a non Italian passport.