LLC × residence calculator · Edition 2026.09
If you lived in Germany: how much tax you would pay on your LLC profit
Germany does not copy the US disregarded-entity treatment of the LLC: it runs its own type comparison (BMF ruling of 19 March 2004, confirmed by the Federal Fiscal Court on 18 May 2021). A typical single-member LLC passes that test as a partnership (Mitunternehmerschaft), so the profit is yours in the year it is earned and is taxed under income tax, distributed or not.
Isaac Cubero · Checked on 14 September 2026 · worldwide income
At $100,000 of profit
On $100,000 of LLC profit, living in Germany, you would pay about $29,053 a year: a 29.1% effective rate.
worldwide income
| Income tax (Einkommensteuer), 2026 scale approximated by brackets (§32a EStG) | $29,053 |
| Estimated total | $29,053 |
Sources: Income Tax Act §32a (2026 scale); Tax Development Act (Steuerfortentwicklungsgesetz), Federal Law Gazette I 2024 No. 449 (30 Dec 2024): 2026 basic allowance = €12,348 · Income Tax Act §§20 and 32d (flat capital income tax and partial-income method option) and §3 Solidarity Surcharge Act 1995 (exemption and its carve-out for capital income withholding) · Corporate Income Tax Act §23 (15%) and Trade Tax Act §11 (3.5% base rate); average multiplier ≈400% (Destatis) / 438% in municipalities over 20,000 residents (DIHK, 2025) · BMF ruling of 19 March 2004 (IV B 4 - S 1301 USA-22/04) and Federal Fiscal Court order of 18 May 2021 (I B 75/20), on the LLC type comparison; Foreign Tax Act §§7-14 with the §8(5) threshold lowered to 15% by the Minimum Tax Directive Implementation Act (Dec 2023) · Fixed exchange rate 0.86 EUR/USD.
Rank 31 of 38 residences by effective rate at this profit.
- 2026 scale (basic allowance €12,348) approximated by brackets: zones 2 and 3 of §32a EStG are actually a quadratic formula, not straight-line brackets; the table's marginal rates reproduce the curve with under 0.1% error in tax due at each reference point.
- Solidarity surcharge NOT included in the personal income scale: since 2021 only taxpayers above a €20,350 annual tax liability pay it (€40,700 filing jointly, §3 SolzG), a threshold left out of this estimate.
- No social security, no church tax (Kirchensteuer, an extra 8-9% for church members), no personal deductions.
- If you effectively work from Germany (laptop, clients, hours there), on top of the worldwide tax already captured you may need to register as self-employed (Gewerbeanmeldung) and pay social security.
- The flat dividend tax DOES carry the solidarity surcharge from the first euro: the €20,350 exemption only applies to general income tax (§3 SolzG); only the €1,000 annual savings allowance (Sparerpauschbetrag) stays free on the dividend.
- If you own 100% of your own foreign company and work for it, you can opt into the partial-income method (60% of the dividend on the progressive scale, §32d para. 2 no. 3 EStG) instead of the flat tax; at high marginal rates it is usually worse, but it is a real option to check case by case.
- If you control more than 50% of a passive foreign company taxed below 15%, the CFC rule (AStG §§7-14, threshold lowered to 15% in 2024) attributes the profit to you even if undistributed: neither a Georgian LLC nor a Dubai free zone entity escapes this.
- Income Tax Act §32a (2026 scale); Tax Development Act (Steuerfortentwicklungsgesetz), Federal Law Gazette I 2024 No. 449 (30 Dec 2024): 2026 basic allowance = €12,348
- Income Tax Act §§20 and 32d (flat capital income tax and partial-income method option) and §3 Solidarity Surcharge Act 1995 (exemption and its carve-out for capital income withholding)
- Corporate Income Tax Act §23 (15%) and Trade Tax Act §11 (3.5% base rate); average multiplier ≈400% (Destatis) / 438% in municipalities over 20,000 residents (DIHK, 2025)
- BMF ruling of 19 March 2004 (IV B 4 - S 1301 USA-22/04) and Federal Fiscal Court order of 18 May 2021 (I B 75/20), on the LLC type comparison; Foreign Tax Act §§7-14 with the §8(5) threshold lowered to 15% by the Minimum Tax Directive Implementation Act (Dec 2023)
- Fixed exchange rate 0.86 EUR/USD.
At three profit levels
What you would pay in Germany depending on what your LLC earns.
| Annual profit | Estimated tax | Effective rate | You would keep |
|---|---|---|---|
| $50,000 | $9,689 | 19.4% | $40,311 |
| $100,000 | $29,053 | 29.1% | $70,947 |
| $250,000 | $92,053 | 36.8% | $157,947 |
Brackets applied (Income tax (Einkommensteuer), 2026 scale approximated by brackets (§32a EStG))
| Up to 12,348 EUR | 0% |
| From 12,348 EUR to 14,000 EUR | 15.5% |
| From 14,000 EUR to 17,799 EUR | 20.5% |
| From 17,799 EUR to 30,000 EUR | 26.1% |
| From 30,000 EUR to 50,000 EUR | 31.7% |
| From 50,000 EUR to 69,878 EUR | 38.6% |
| From 69,878 EUR to 277,825 EUR | 42% |
| From 277,825 EUR to and above | 45% |
And if it were not an LLC
The five cheapest structures from Germany, distributing all the profit.
| Structure | Corporate | Withholding | You, in Germany | Total |
|---|---|---|---|---|
| UAE free zone | $0 | $0 | $26,375 | 26.4%$26,375 |
| US LLC | $0 | $0 | $29,053 | 29.1%$29,053 |
| Hong Kong Ltd | $8,250 | $0 | $24,199 | 32.4%$32,449 |
| Bulgarian EOOD | $10,000 | $4,500 | $19,238 | 33.7%$33,738 |
| Georgian LLC | $15,000 | $4,250 | $18,169 | 37.4%$37,419 |
Frequently asked questions
Does a US LLC pay tax if I live in Germany?
The LLC pays no US federal tax if it has no US activity. Germany does not copy the US disregarded-entity treatment of the LLC: it runs its own type comparison (BMF ruling of 19 March 2004, confirmed by the Federal Fiscal Court on 18 May 2021). A typical single-member LLC passes that test as a partnership (Mitunternehmerschaft), so the profit is yours in the year it is earned and is taxed under income tax, distributed or not.
How much would I pay in Germany on $100,000 of profit?
On $100,000 of LLC profit, living in Germany, you would pay about $29,053 a year: a 29.1% effective rate. The figure comes from applying income tax (einkommensteuer), 2026 scale approximated by brackets (§32a estg) to the profit converted to EUR.
Is Germany a territorial country?
No: Germany taxes its residents' worldwide income. The LLC profit goes into your income tax under the country's rule (worldwide income).
Next
The figure is the start. The structure is the decision.
To see Germany against the other 37 residences: the full ladder.