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I am french citizen, but living and working in Germany. I pay taxes in Germany. I have with a French bank a "livret development durable" ("sustainable development bank account") on which interests are not taxable, as far a french taxes are concerned (in french: https://www.service-public.fr/particuliers/vosdroits/F2368)

How does this work for me ? Does this mean I do not have to pay taxes on these interests at all, or do I have to pay related taxes to Germany ?

This is a specific example to make the conversation concrete, but the same could be asked in relation, for example, to french life insurance (which also have various tax related benefits, as far as french law is concerned)

  • When I was working as assegnista di ricerca (≈postdoc) in Italy, the German tax office nevertheless decided that my center of life stayed in Germany, so I did a German income tax declaration. The German tax office explained to me: if I bring proof that the Italian income was taxed in Italy (regardless of the rate), no German taxes will be due on that income, but it enters the calculation of progression. Now, the wages for that particular type of job are tax-free in Italy. The tax office accepted copies of my wage sheets which cite the law in question plus a translation of that. – cbeleites unhappy with SX Feb 16 at 21:17
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    OTOH, capital gains are treated differently from other income. How about looking up the relevant tax treaty? The short info bzst.de/SharedDocs/Downloads/DE/EU_OECD/… does look to me at a first glance as if you'll have to pay German Abgeltungsteuer, but cannot claim French Quellensteuer since none has been paid and there is no "fiktive Quellensteuer" listed. See also bundesfinanzministerium.de/Web/DE/Themen/Steuern/… – cbeleites unhappy with SX Feb 16 at 21:25
  • @cbeleitessupportsMonica I find it surprizing that for such an (apparently) easy and common question I have to read and interpret internal national tax treaties ! – Vince Feb 25 at 8:37
  • When I first had to look up a tax treaty, so was I. But it turned out that EU has kind-of streamlined the whole thing in the sense that it means there will be tax treaties in place that make sure one doesn't have to pay twice, but not in that the actual tax system is the same in all details (not even with VAT: e.g. each country decides whether small businesses get an option to be exempt from VAT or not). The treaties are still needed, just like EU regulations need to get some national law implementing them. – cbeleites unhappy with SX Feb 29 at 15:25

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