Tax on money Germany

[Entrepreneur0508]

I send to one person who lives in germany monthly 500 EUR via stealth account he already was asked to prove identity for paypal so he afraid that I am sending too much for him. Is there any limit as to how much money can be transferred in a multiple transaction without raising alarm. Any other things that I should be careful about money transactions that might end up being taxed?


Any help will be highly appreciated.

 

[W9go]

i forgot the number but its not so high on PayPal ........ it was some like 2000 to 3000 a year ... but not sure any more.

then PayPal will limit the account or you have to legalise it.
and if you legalise it you risk a lot if not paying tax in germany.

 

[I-marketer]

2500 eur per year is a limit in EU.
If you wish to receive more money, you'll have to upgrade you PP account.

 

[Rie]

Yeah if your sending large amounts of money it does seem suspicious.

 

[issorc]

Tell him to open a legal business (takes a few minutes and 20-50$) and he won't have to pay taxes up to somewhere about 8500€ a year and everything is fine. I wouldn't fuck around with German tax authorities because I wouldn't be surprised if somehow they find about that money if he keeps receiving such amounts.

 

[HoNeYBiRD]

Up to 8,820 EUR/year is non-taxable in Germany in present year. If you send 500 EUR/month, that's 6,000 EUR/year, which is under the limit. If the recipient doesn't have other income or the income combined doesn't surpass this 8,820 EUR/year limit, he/she doesn't have to pay taxes. Although if he/she has a job for instance, the yearly income goes over the limit for sure and this 6,000 EUR becomes taxable too.

@issorc: i don't think that opening a business is required, that limit is true for everyone, self-employed people too.

 

[issorc]

Up to 8,820 EUR/year is non-taxable in Germany in present year. If you send 500 EUR/month, that's 6,000 EUR/year, which is under the limit. If the recipient doesn't have other income or the income combined doesn't surpass this 8,820 EUR/year limit, he/she doesn't have to pay taxes. Although if he/she has a job for instance, the yearly income goes over the limit for sure and this 6,000 EUR becomes taxable too.

@issorc: i don't think that opening a business is required, that limit is true for everyone, self-employed people too.

You have to open a "business" as soon as you are self-employed in Germany. I guess you'd call that sole proprietor in other countries. You have to register as a sole proprietor and give your income and expenses to the authorities to be on the safe side

 

[HoNeYBiRD]

You have to open a "business" as soon as you are self-employed in Germany. I guess you'd call that sole proprietor in other countries. You have to register as a sole proprietor and give your income and expenses to the authorities to be on the safe side

I see and i guess he can't say it either that the money was a gift, because there are taxes on gifts too i suppose.

 

[issorc]

I see and i guess he can't say it either that the money was a gift, because there are taxes on gifts too i suppose.

For friends it's up to 20.000€ tax free in gifts if I remember correctly. But no one will believe that someone just gifts him 500€ each month without any reasons

 

[cynic]

Use bitcoin or that bank card they have in germany... I forgot what the name is

 

[HoNeYBiRD]

For friends it's up to 20.000€ tax free in gifts if I remember correctly. But no one will believe that someone just gifts him 500€ each month without any reasons

Okay. Another thing then: loan repayment.

Scenario: I gave a friend a loan with no interest and he pays me back in monthly installments.

 

[kweiss]

Check out bunq or revolut. Both give you EU bank account numbers you can transfer money to from party accounts

 

[ReneBHW]

Upgrade your pp ac into bussines ac and you will be fine with that amount.But you need to prove that you have a bussines.

 

[Azaro867]

Who can give me good cc site to buy card ?