For people relocating from Germany to the United States

Moving to the US From Germany: Your First US Tax Year

Relocating from Germany? The US decides tax residence by its own tests, your first year is usually split in two, and the US-Germany treaty settles dual residence. Here is how each piece works.

Substantial presenceGreen card testDual-status yearTie-breakerSocial security

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Quick answer

When does someone moving from Germany start paying US tax on worldwide income?

From the residency starting date: the first day in the US in a year you meet the substantial presence test, or the first day as a permanent resident under the green card test (IRS Pub 519). Before that you are a nonresident, so the first year is usually dual-status. If you are also resident in Germany, Article 4 (Residence) of the treaty decides which country you are resident in for treaty purposes.

Prepared by Illuminous Accounting · Sources checked November 11, 2026

At a glance

When you become US resident: Green card test or substantial presence test (Code section 7701(b))
First year: Usually dual-status: nonresident, then resident
Treaty tie-breaker: Article 4 (Residence)
Social security agreement: Yes, since December 1, 1979
Accounts in Germany: FBAR, Form 8938 and PFIC rules can apply once resident

Arriving from Germany: which test applies

There is no form that makes you a US tax resident. It happens automatically under Code section 7701(b) once you pass either test (IRS Pub 519). A green card does it from the first day you are in the US with permanent resident status. Without one, the substantial presence test does it once you have 31 days this year and 183 weighted days over three years.

Someone arriving from Germany with no earlier US days needs to arrive by early July and stay for the rest of the year to pass the substantial presence test in the first year. The calculator shows the date for your arrival.

The residency starting date

Expect your first year to have two halves. Income from Germany before you became resident is generally outside US tax unless it is US-source; income after the residency starting date is taxed worldwide (IRS Pub 519). The starting date is your first day in the US in that year under the substantial presence test, or your first day as a permanent resident under the green card test. People who arrive near year end may be able to opt in early under the first-year choice. Getting the date right decides which German salary, bonuses and investment income the IRS sees.

Dual residence with Germany

The US tests in Pub 519 do not override a treaty's own residence rules (IRS Pub 519). For people moving from Germany: Article 4 (Residence) of the treaty has the tie-breaker for someone resident in both countries: it looks first at where you have a permanent home available, then at the further tests the article lists, in the order it sets them. A US return that relies on the tie-breaker needs Form 8833 (IRS), and long-term green card holders should check the section 877A consequences first.

Your accounts back home

Once you are a US resident, bank, pension and investment accounts you keep in Germany can bring the FBAR and Form 8938, and funds held there are often treated as PFICs (Form 8621, IRS). See FBAR and FATCA and Form 8938 for who files and the thresholds.

Treaty and law references

Treaty

The IRS lists the 1989 income tax treaty, signed August 29, 1989, amended by a 2006 protocol. General effective date (IRS Table 3): treaty Jan. 1, 1990; protocol Jan. 1, 2008 (IRS treaty documents for Germany; treaty text; IRS Table 3).
Residence and tie-breaker: Article 4 (Residence).
Saving clause: in the Protocol to the treaty.
Article 18 (Pensions, Annuities, Alimony, and Child Support), pensions.
Article 23 (Relief From Double Taxation), relief from double taxation.
Article 15 (Dependent Personal Services), employment income.

US law

US residency tests and starting dates: Code section 7701(b) (IRS Pub 519).
Treaty residence for dual residents: Treas. Reg. section 301.7701(b)-7, Form 8833 and section 6114; long-term residents: section 877A (IRS Form 8833).
Social security agreements: SSA list.

The rules of Germany on leaving the country also apply; check them with a local adviser.

How we help

We start with your travel dates and your last German tax year, work out the residency starting date and whether the treaty tie-breaker applies, then prepare the US return and any Form 8833. Gurleen Kaur, CPA (BC and Washington), signs. You get a written quote first.

Common questions

Does my visa decide my US tax residence after moving from Germany?

When you meet the green card test or the substantial presence test (31 days this year and 183 weighted days over three years). Your residency starting date is generally your first day in the US that year, or your first day as a permanent resident.

What if I am resident in both Germany and the US?

Article 4 (Residence) of the treaty breaks the tie, starting with where you have a permanent home. Claiming treaty residence in Germany on a US return needs Form 8833.

Do I report my accounts in Germany after moving to the US?

Once you are a US resident, yes: the FBAR when foreign accounts total more than US$10,000, Form 8938 above higher thresholds, and PFIC rules for many foreign funds.

Is there a US social security agreement with Germany?

Yes, in force since December 1, 1979.

Sources

Every rule and figure on this page links to the IRS, CRA or other official source it comes from. Amounts change; we re-check them before each engagement.

Gurleen Kaur, CPA licensed in British Columbia and Washington State. Last updated November 11, 2026. This page is general information, not tax or legal advice for your situation.

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