In brief
Domicile and habitual residence determine domestic scope; treaty residence and individual income articles can alter the allocation.
Start with Federal Ministry of Finance / Bundesportal: Income tax: rights and duties (opens in a new tab)
Keep citizenship, tax residence and FEMA residence separate
These labels answer different questions. Your nationality or OCI card does not alone determine the year’s Indian tax treatment. Establish the relevant year, travel history, income sources and exceptions.
Your next steps
0 of 5 steps complete · Next: Determine whether a German home remains
Determine whether a German home remains
Next stepThe federal portal explains that domicile or habitual residence produces full tax liability on worldwide income. Without either, German-source income can remain within limited liability. Record availability and use of homes; municipal deregistration alone is not an individual tax ruling.
Prepare Indian income and asset records
Practical preparation: list Indian bank interest, rent, pensions, business ownership, funds, share disposals and relevant debts for your German adviser. Retain gross amounts and Indian tax certificates. Ask which return schedules, investment-fund rules or foreign-company/trust disclosures apply rather than assuming salary withholding completes the return.
Check the company-share exit rule
AStG section 6 can deem a disposal of qualifying shares when unlimited tax liability ends or German taxing rights are excluded/restricted. Residence history and the statutory share conditions matter. Obtain valuations and advice on relief, instalments and ongoing notification conditions before moving.
Include fund holdings in the exit review
The Finance Ministry’s December 2025 notification form also covers specified investment-fund provisions in InvStG sections 19(3) and 49(5). Do not assume only company founders need an exit-tax check. This guide does not infer that every ETF holding triggers exit tax.
Assign continuing German obligations
Practical preparation: ask about retained German rent, investments, business income and pensions after non-residence, the departure-year treatment of subsequent Indian income, double-taxation relief evidence and the responsible Finanzamt. Put filing and payment responsibility in writing.
Suggested preparation sequence. Your authority may require a different order. Progress stays on this device.
Germany & India guidance · All countries
Evidence for these steps
Checked 20 October 2026. Links support the statements within their scope; preparation lists are editorial suggestions. Access limitations are disclosed below.
- Determine whether a German home remains: Federal Ministry of Finance / Bundesportal — Income tax: rights and duties Page includes older rate tables; this guide does not use those rates or filing dates.
- Prepare Indian income and asset records: NRIdisha preparation suggestion; confirm your own requirements.
- Check the company-share exit rule: Federal Ministry of Justice / Federal Office of Justice — AStG section 6
- Include fund holdings in the exit review: Federal Ministry of Finance — Exit-tax notification form, 12 December 2025 Official indexed extract reviewed; full PDF extraction failed. No investment-fund thresholds or filing dates reproduced.
- Assign continuing German obligations: NRIdisha preparation suggestion; confirm your own requirements.
What to have ready
0 of 4 preparedKeep documents in your own secure records. Tick what you have; nothing is uploaded.
Model the decision with your own figures
Prepare the dates, currencies, costs and amounts you know. Keep tax eligibility, provider access and uncertain assumptions on your adviser’s question list. The calculators show those assumptions explicitly.
For a return to India, add education, parents’ support, healthcare, partner income and locked funds to the household timeline. Bring supporting-tool figures into it only after reviewing timing, currency and overlap.
Questions to take to an adviser
- Does a retained home preserve domestic residence?
- Which company or fund positions meet the exit provisions?
- What relief and later reporting conditions follow an election?
Who can help
A qualified Germany adviser and an Indian cross-border tax or citizenship specialist, as appropriate. The responsible authority decides applications.
Check an adviser before paying or signingSources & review limits
Published by NRIdisha. Prepared with AI assistance. No individual author or qualified professional reviewer is credited for this guide.
Official sources support the statements they address. They do not certify this guide or your eligibility. Open the source and check current amendments before acting.
Income Tax Department (opens in a new tab) · Reserve Bank of India (opens in a new tab) · National Portal of India (opens in a new tab)
Domicile/habitual residence and worldwide versus limited taxation.
Source access limit Page includes older rate tables; this guide does not use those rates or filing dates.
Conditional exit taxation of qualifying company shares; reporting and relief require individual review.
Official notification includes AStG section 6 and InvStG sections 19(3)/49(5).
Source access limit Official indexed extract reviewed; full PDF extraction failed. No investment-fund thresholds or filing dates reproduced.
Keep this page’s title, the exact statement and the official source. Email them to support@nridisha.com. Do not include personal documents.