Does the ARC move my residence from Germany to Taiwan automatically?

yunomarc · September 18, 2019, 9:59am

Hello,
I am about to accept a job offer in Taipei. The next steps are to get the work permit and then the ARC. My residence is in Germany (Anmeldung) and I would like to keep it because I want to keep my room than I am renting there.
My question is, if I get the ARC, does my residence move from Germany to Taiwan automatically?
Thank you.

tempogain · September 18, 2019, 10:33am

It’s not quite clear what you mean. Do you mean under some German law or regulation, or something else?

Hamletintaiwan · September 18, 2019, 10:41am

You need to cancel your residency in Germany. How can Taiwan do that?

yunomarc · September 18, 2019, 10:43am

Thank you for your reply!
Yes, I mean under German law.
I live in Germany in a shared flat and I am still on the contract because I want to keep the room for some time. My question is, can I normally work in Taiwan (paying taxes here etc.) and in the same time to keep my room in Germany?
Because my understanding is that ARC means that I am resident in Taiwan. In this case, how can I be resident in two countries at the same time?

tempogain · September 18, 2019, 10:46am

You just want to keep your room? There’s no other ramification?

yunomarc · September 18, 2019, 10:47am

Yes, and maybe sub-renting (legally) later on.

Michel · September 18, 2019, 10:56am

The German ministry of Finance will regard your Shared flat room as a ( second ) residence no matter if you actually spend time there or not. Which means you‘d be regarded as liable to income tax in addition to tax in Taiwan .
Note: this doesn’t mean you actually will be taxed in Germany , but you have to file a „Steuererklärung“ as long as you keep a residence in Germany . Since Taiwan and the BRD have sth like a double taxation agreement you’d normally pay taxes on your income in the country of your permanent residence ( in your case , Taiwan , 180 day rule applies) . However , they’d still want you to file taxes in Germany, as any income source you might have there will still be taxed under German law.
If you want to avoid all this, you‘d need to cancel your rent contract and actively go to your respective town/city administrative office to cancel your residence .

yunomarc · September 18, 2019, 11:09am

Thank you very much Michael!
Then I will keep the room and file the tax declaration in Germany explaining my situation.

Michel · September 18, 2019, 11:11am

I think the sub-renting might be a good option.
That way you can keep the room but you don’t have the actual possibility to stay there ( Verfügungsgewalt) which is what the tax authorities will look at . If you decide coming back for a longer period, it’s easier to just stay at hotel or family/friends.

yunomarc · September 18, 2019, 11:47am

Yes, this would be my plan. I think to stay in Taiwan, but I need I plan B in case it doesn’t work. It has been one month now and I’ve enjoyed Taipei so far.

olm · September 18, 2019, 1:15pm

Willkommen in Taiwan!

Exactly, like my experience: unless you completely un-register from Germany (Abmeldung, keine gemeldete Wohnung nehr), you will not be treated as completely without residence.

yunomarc · September 21, 2019, 3:44am

Dankeschön

slawa · February 12, 2020, 7:50am

I want to chime in with some information.

You need to personally cancel your residence in Germany (abmelden)!

Pro:

you don’t need to pay taxes (Avoidance of Double Taxation)
you can cancel mandatory health insurance in Germany! Usually your employer pays for it, or you are enrolled in family insurance. When you leave Germany without having family insurance or cancelling it, the fees can pile up! (monatliche Mindestbeitrag für 2019 liegt bei 151,60 €)
you can still vote

Contra:

some banks may close your account (Tip: ING Bank lets you keep your account)
more visits to government offices when you decide to return