Expats living in one of the EU countries have the right to compensation for overpaid tax. You can find out the amount of payments after submitting the annual income declaration. Find out what a tax refund is and which foreigners working in Europe are entitled to a tax refund

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An expat who lives in the European Union for more than 6 months becomes a tax resident. That is, from this moment on, a person must pay the state a certain share of his income as a tax every month. These funds are used to support the social sphere and the improvement of the country, and are also transferred to the employee's pension fund.

However, part of the taxes can be returned as a refund. Who can get their money back in the EU and how to do it? We tell.

What is a tax refund?

A tax refund is the return of money that has been overpaid in taxes to the host country's government. This usually happens when employers withhold too much from an employee's wages.

Tax rules vary by country. However, in most EU countries employers pay taxes in advance, he transfers these advance payments to the local tax office every month in the name of the person.

When can an overpayment of tax occur?

Overpayment is possible for several reasons:

- incorrectly calculated tax,

- changes in the financial situation,

- availability of tax discounts and credits, etc.

Therefore, after the end of each fiscal year, you can fill out an income statement, where you will actually calculate how much tax was paid and how much you should have paid. And it is this difference that can be returned as a refund.

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In which EU countries can you get a tax refund?

A refund can be obtained by any citizen who pays income tax (or whose employer pays it) in any EU country. The exception is Monaco, where there is simply no income tax.

How to get a tax refund in Germany?

In order to receive a German personal income tax refund (Einkommensteuer), you must submit an income declaration and contact the tax office (Finanzamt).

You have several years to apply, for example, to get a refund for 2022, you need to apply by December 31, 2026.

According to the Federal Statistical Office of Germany, expats can receive an average of up to 1,095 euros per year in tax refunds.

Tax refunds in France

Income tax in France must be paid on all your income, regardless of the nationality of the payer. The calculation depends on various factors, allowing you to tailor your tax liability to suit your personal circumstances. In addition to deductions, there are a number of tax benefits, such as tax reductions for hiring domestic workers or childcare expenses. The main difference of the French system is that the tax base is calculated for the whole family.

The deadlines for submitting a tax return for individuals in France (impôt sur le revenu) are set annually by the French administration. As a rule, this is May or June of the year following the reporting year. To submit documents, it is necessary to submit two copies of the completed declaration together with the passport, property contract and bank account number to the tax inspectorate at the place of residence.

Tax deductions in Italy

In order to become a tax resident of Italy and be able to receive tax deductions (rimborso fiscale), after 183 days of your stay in the country, you need to register in the Italian Register of Permanent Residents (Anagrafe).

The tax year in Italy runs from January 1 to December 31, and personal income tax is paid in advance. The employer withholds taxes and social contributions from the employee's salary every month and transfers them to the relevant authorities. To claim any deductions, you must file a Modello 730 or Modello Reditti tax form. The deadline for submission is September 30.

Tax refund in other EU countries

  - The UK government says that it is possible to get a refund of overpaid tax for the current and four previous years by submitting a tax return after the end of the tax year in April. The amount refunded depends on various factors: the amount of the overpayment, the taxpayer's income and their tax rate, but on average you can count on £1,017.

- The Tax Office of the Netherlands informs that in the Netherlands you can apply for a tax refund for the last 5 years. You need to file a tax return every year to get a tax refund. Overpayment of taxes can occur for several reasons, such as not having worked for a full year, having deductions that reduce taxation, or being eligible for specific tax credits. The approximate amount of refunds in the Netherlands is 975 euros.

- Expats can also receive in Ireland – 1,096 euros, in Austria – 904 euros and in Norway – up to 5,822 kroner.

 Additional benefits that an expat can receive after submitting a declaration

After submitting an income declaration, the employee will not only be able to receive a tax refund, but will also receive additional benefits from the country's government, such as child support:

- Germany – up to 250 euros for each child,

- The Netherlands – 270 euros for small children and up to 385 euros for seniors,

- Norway – 970 kroner per month.

How can an employee receive a tax refund abroad?

An expat can submit a declaration independently, but for this it is necessary to have a good command of the language of the country of residence and to know the legislation.

That is why many foreigners often cooperate with tax experts, one of the most experienced is RT TAX. Founded in 2000, the company occupies a leading position in the field of tax refunds worldwide. The network has more than 400 representative offices in 40 countries. Over the entire period of work, 250,000 workers from all over the world became clients of the agent.

The main advantage of RT TAX is that the company works on the basis of a successful commission, which means that clients pay for services only when they receive a refund, without the need for an upfront payment.

We will remind you! The cost of living varies greatly between countries, with some states being much cheaper to live in than others. We have already talked about the TOP-5 countries in the world with the lowest cost of living in 2024, as well as where the lowest taxes and the highest average salary are.

Igor Usyk - Head of Migration department at VisitWorld

To ensure a safe move to a new country, I advise you to consult a specialist. My colleagues, qualified specialists with a legal education, will help you avoid unpleasant situations during migration.

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