We are planning to relocate in January 2011.
We have Spain, Malta and Germany as destination options. My question is regarding becoming a tax resident and the importance of timing.
As we would only move in January 2011, we believe the tax year 2010 would be irrelevant from German Tax perspective.
But I wonder whether a short visit in december 2010, followed by the move in January would complicate the situation.
Some countries such as Spain and Germany have a rule which I could not understand its extent:
If you have the intention to live in Germany permanently when you first arrive then you will be accepted as a tax resident on the first day you arrive.
The reason for our concern is:
We have sold an overseas property in 2010 and according to the local tax law we did not have to pay any income or capital gains tax as the property was held more than 5 years.
I just wanted to know whether our short visit in 2010 would make us liable to any taxes in Germany. Or would we become tax resident when we apply for it officially.
If there is any one with relevant info or experience and share this on BE forum , we will be happy.