The fact that influencers from Dubai are coming back to Germany and the Treasury is expecting them “desirefully” at the airport is a pretty picture – and the only merit of today’s show, which has recently satirically prepared the topic. From a tax point of view, the situation is quite different: Those who do not shrug their shoulders when retreating to Germany, but take a structured approach, pay almost no taxes on their assets built up abroad in Germany.

1. Starting position: Influencer, Dubai and the desire to return

In recent years, Dubai has become the preferred destination for German influencers, entrepreneurs and online self-employed people. The United Arab Emirates attracts with an income tax of 0%, a corporate income tax of 9% (with numerous exemptions, especially for free zone companies) and a living environment that is considered camera-friendly, especially in the social media business.

The typical constellation looks like this: The German influencer moves to Dubai, gives up his German residence, sets up either a sole proprietorship or an LLC in one of the Dubai Free Zones and moves all his income from advertising, affiliate marketing, licensing rights and brand deals there. Over several years, he builds up a considerable fortune in this way, which was never subject to unlimited tax liability in Germany.

At some point – often for family reasons, because of the children’s school or simply from a personal return home – the desire to live again in Germany arises. At this point, the “today show” starts and suggests that the tax office would now stop the hand for all years abroad. In fact, however, German tax law regulates the influx – i.e. the counterpart to the exit taxation – in several respects in favour of the taxpayer.

2. Three reasons why there are hardly any taxes for influencers when returning to Germany

2.1. Reason 1: No retroactive taxation of foreign income

The central rule of German income tax law is: Anyone who has a residence in Germany (§ 8 AO) or his habitual residence (§ 9 AO) is in accordance with § 1 para. 1 EStG unlimited taxable – with its world income. Anyone who does not meet these requirements is at most subject to limited taxation in Germany (§ 1 Abs.). § 49 EStG, i.e. only with very specific domestic income.

From this basic rule follows an important temporal consequence: Unrestricted tax liability is linked to a factual situation to be examined separately for each assessment period. As long as the influencer was based in Dubai and did not have a German residence or habitual residence, Germany has no taxation right on its worldwide income – and it does not arise if he later moves back.

Contrary to the satirical presentation suggests, there is no German tax law that retroactively taxes a person’s foreign income as soon as he takes up residence in Germany again. Even the Foreign Tax Act (in particular § 2 AStG on the Extended Limited Tax Liability) does not have such retroactive effect; it only applies in the years after the departure, but not in the years of the stay abroad and especially not after the withdrawal.eifel not for small amounts, but for substantial tax advantages that you can now hedge – or lose.

2.2. Reason 2: Temporary stay under 183 days – no unlimited tax liability

Many clients come with the idea that even the first step back to Germany makes them an unlimited taxpayer. That is incorrect. In addition to German citizenship, which is not sufficient in itself, the fact of unlimited tax liability requires either a residence (§ 8 AO) or an habitual residence (§ 9 AO) in Germany.

2.2.1. Residence within the meaning of § 8 AO

A person has a residence where he holds an apartment under circumstances that suggest that he will maintain and use it. The decisive factor is the actual power of disposal: Anyone who stays in the hotel or apartment on their return holiday – even over several weeks – and does not conclude a rental agreement for an apartment with its own keys, does not regularly establish a residence in the tax sense.

2.2.2. Ordinary residence within the meaning of § 9 AO

In addition, a person establishes his habitual residence where he resides in circumstances which indicate that he is not staying only temporarily in this place or area. An ordinary stay is always – from the beginning – a consecutive stay of more than six months (§ 9 sentence 2 AO). Short-term interruptions are not taken into account.

Conversely, this means: Whoever stays in Germany for less than 183 days consecutively and exclusively for visiting or recreational purposes (stays in the hotel, with friends or family), remains in the area of the mere temporary stay and does not trigger an unlimited tax liability.

Reason 3: Step-up when moving in – fictitious depreciation over 15 years

The really exciting and in practice so far little known point is reason 3: Even influencers who return permanently to Germany and bring their foreign structure, pay over a period of about 13.75 to 15 years, in fact hardly any income, corporate or business tax. The reason for this is the mirror-image counterpart to the exit taxation of § 6 AStG: the so-called step-up in the event of influx or entanglement.

2.3.1. Reflection of exit taxation

Anyone who leaves Germany is taxed with the common value of his shares in GmbH as if he had sold them – this is the famous exit tax according to § 6 AStG. When moving to Germany, the exact opposite mechanism applies: economic goods that enter the field of German taxation for the first time are valued at the common value. Depending on the situation, different standards are relevant here: