Fiktive unbeschränkte Steuerpflicht (§1 Abs. 3 EStG)
The option for a non-resident to be taxed like a German resident.
Under §1 Abs. 3 EStG, a person without a German home can apply to be treated as fully taxable in Germany. Two alternative conditions: at least 90 % of the year's worldwide income is subject to German income tax, or the income not taxed in Germany stays below the Grundfreibetrag (reduced for some countries of residence). The foreign amount must be proven by a certificate from your home tax authority. If it works, you file Hauptvordruck ESt 1 A instead of ESt 1 C, recover the Grundfreibetrag, and your foreign income enters the German rate through Progressionsvorbehalt. For a typical landlord who earns a salary abroad, the 90 % test fails and the standard ESt 1 C route remains the right one. The option is open regardless of nationality; the extra family benefits of §1a EStG are reserved to EU/EEA nationals.
Last reviewed: by Yann Lephay.