Germany has signed agreements with 90 countries to avoid double taxation and reduce German income tax.
Foreign tax payers who earn royalties in Germany can reduce German income tax. They need to apply for tax exemption with the German Central Administration for Taxes by filling in the application form for each debitor and enter proof or regular taxation in their country of residence. The German tax authorities will then consider the application.
Once granted, the tax exemption for this debitor is valid for three years. If the recipient receives royalty payments from more than one debitor, he will need to apply separately.
Those who prefer to waive tax exemption will receive royalties less German income taxes and may reclaim them later in a long and complicated process.