I studied in the USA for 4 years and started working as a Software engineer in the USA. Now I was wondering if I could work full time remote from Germany for the same US company. After some research it seems like this is possible, but how would it be if my salary would still get paid on my US bank account? Would I have to file taxes in the USA and Germany? Or how would this work? Anyone in the same situation?
If you work for the US company, but both live and actually perform the work in Germany, then it's a sure bet that the arrangement makes the company a German employer in the eyes of German labor law. They'll have to withhold German tax, pay German social contributions, follow German notice rules if they need to lay you off, and so forth.
They may or may not be prepared to take on that administrative burden for your sake. If you're their only non-US person, they'll almost certainly need to pay a German employment lawyer to get them up to speed with what they're getting into before they can even make a decision -- unless they reject the proposal out of hand, that is.
It does not matter where the bank account your salary is paid into is located -- though, since the employer will probably need to contract with a German payroll processing company to get the tax withholding and reporting etc done properly, they would likely insist on paying you in euros into a German account (or at least somewhere in the Single Euro Payment Area) because that's what the payroll processor supports.
If the employer does agree to you working remotely (perhaps they have other remote workers in Germany, in which case most of the administrative overhead is taken care of already), then as far as your economy is concerned, you'd just be a German employee -- working in Germany, being paid in Germany, paying tax in Germany. Not paying tax to the US.
Just for the sake of putting in an answer,
OP wants to change from working for X (on salary) in the US, to working remotely for X, while living in Germany.
- This is completely commonplace
and how you do it is
- You change from salaried to freelance, then go live anywhere you want.
TBC then in that situation
- You're just a normal German person living in Germany and freelancing. You'd of course pay all normal taxes/etc just like any other German self-employed programmer. (The fact that your main client happens to be in the USA is irrelevant. It's just "a client".)
(Just TBC in that situation, you have utterly no connection to the USA to USA taxes; you do nothing whatsoever in relation to the USA's IRS. You're just a normal German self-employed person.)