Germany - Ireland Double Tax Treaty

Irish investors who are interested in carrying operations in Germany can benefit from the stipulations of the Germany- Ireland double taxation agreement (DTA), a document signed by the representatives of the two contracting states in order to avoid the double taxation of taxable income of Germany and Irish individuals or legal entities. Our team of German lawyers can assist Irish businessmen with legal information on the main benefits of the treaty. 

 

 

The stipulations of the treaty are applicable to residents of the two contracting states on income, which can be represented by total income, total capital, or elements of income. The authorities of the two countries take into consideration the income from the following: 

 

• taxes from the alienation of movable or immovable property;

• taxes on wages;

• taxes on capital appreciation. 

 

Irish authorities are applying the next taxes: 

 

• the income tax;

• the income levy;

• the corporation tax;

• the capital gains tax. 

 

According to the Article 2(3), Germany applies the following taxes: 

 

• the income tax;

• the corporation tax;

• the trade tax;

• the capital tax. 

 

It is important to know that the differences in the taxes applied by the two contracting states are derived from the national legislation of each jurisdiction, but the stipulations of the treaty are specifying that the authorities have created a legal framework to apply the agreement on similar taxes; our team of German attorneys can offer an in-depth presentation on this matter. 

 

Under the stipulations of the German- Irish DTA, the income obtained from immovable property, which also includes the income from forestry and agriculture, is taxed as follows: if an Irish investor obtains a profit from an immovable property situated in Germany, the profit may be taxed Germany. 

 

The taxation is applicable if the direct beneficiary is using or letting the respective property. 

 

Persons interested in receiving more details on the provisions of the Germany – Ireland double taxation treaty can address to our German law firm for legal assistance.