Taxation of non-residents

A foreign investor planning to set up a business in Germany has
a wide range of options. If the activities on the German market
are only intended to be short-term, the investor may choose not
to establish a physical presence, but might instead prefer direct
transactions with his business partners.

If, however, business
activities are intended to be of a longer-term nature and require
a physical presence in Germany, the foreign investor may estab-
lish:
– a permanent establishment,
– a partnership,
– a corporation.
Income taxation in Germany for non-residents differs depending
on the form of investment chosen.