People who emigrate but deliberately keep their registered address (Meldeadresse) in Germany usually have understandable reasons: the bank account is to be kept, health insurance is to continue, child benefit is not to be interrupted, and a return should remain easy. Under German law, however, a registered address at which you no longer actually live is not a mere formality. It is a sham residence (Scheinwohnsitz). Unlike a deregistration (Abmeldung) that was simply forgotten, which mainly creates a risk of an administrative fine, a deliberately maintained registered address can trigger consequences in several areas of law at once: registration law, tax law, child benefit and social benefits, voting rights and insurance.
The duty to deregister itself, its deadlines and the link to registration for military service are explained in the article on registration duties when living abroad. This article deals with the deliberate, long-term retention of a German registered address despite moving abroad and with the risks this entails.
Sham Residence and Forgotten Deregistration: The Difference
Under Section 17 (2) of the Federal Registration Act (Bundesmeldegesetz, BMG), anyone who moves out of a dwelling and does not move into a new dwelling in Germany must deregister, within two weeks of moving out. Deregistration is possible at the earliest one week before moving out. Anyone who misses this deadline because of time pressure or lack of knowledge has committed a registration-law omission that can generally be remedied by deregistering late.
A sham residence exists where a registered address is maintained although nobody actually lives there and nobody intends to. A typical constellation is that relatives or acquaintances “make their address available” without there being a room of one’s own, a key of one’s own or any actual use. A mere omission then turns into a permanent state of affairs that creates a false impression towards authorities, banks, insurers and benefit agencies.
Registration Law: Two Different Ranges of Fines
The Federal Registration Act sanctions violations as administrative offences (Ordnungswidrigkeiten). It distinguishes between two constellations with very different ranges of fines.
Failure to Deregister: Up to EUR 1,000
Anyone who, contrary to Section 17 (2) BMG, does not deregister or does not deregister in time commits an administrative offence under Section 54 (2) no. 2 BMG, whether intentionally or negligently. The fine amounts to up to EUR 1,000 (Section 54 (3) BMG). If an emigrant simply remains registered at their previous address, this generally falls under this offence; the deadlines and procedure for deregistration are described in the article on registration duties when living abroad.
Sham Registration: Up to EUR 50,000
Sham registration (Scheinanmeldung) is regulated far more strictly. Section 19 (6) BMG prohibits offering or providing a residential address to a third party for registration purposes although the third party neither actually moves into the dwelling nor intends to do so. An intentional violation is an administrative offence under Section 54 (1) BMG and can be punished with a fine of up to EUR 50,000 (Section 54 (3) BMG).
This provision covers the case in which an address is made available for a new registration, for example where the emigrant registers with relatives in order to have a postal address there. It is primarily addressed to the person offering the address. The emigrant, however, is not off the hook: the law on administrative offences uses a unified concept of participation (Section 14 (1) of the Administrative Offences Act, Gesetz über Ordnungswidrigkeiten, OWiG). Anyone who intentionally initiates or participates in a sham registration can therefore be fined as a participant themselves.
Tax Law: When the Registered Address Undermines Your Own Emigration
Perhaps the most important effect concerns income tax. Anyone who emigrates so as no longer to be taxable in Germany on their worldwide income makes it harder, by keeping a registered address, to provide exactly the proof that matters.
The Population Register Is Not the Tax Residence, but It Is an Indication
A person is subject to unlimited income tax liability if they have a residence (Wohnsitz) or their habitual abode (gewöhnlicher Aufenthalt) in Germany (Section 1 (1) of the Income Tax Act, Einkommensteuergesetz, EStG). Under Section 8 of the Fiscal Code (Abgabenordnung, AO), a person has a residence where they hold a dwelling under circumstances indicating that they will keep and use it. Under Section 9 AO, a person has their habitual abode where they stay under circumstances indicating that they are not merely staying temporarily; a continuous stay of more than six months is always deemed a habitual abode, with short interruptions being disregarded; stays solely for visits, recreation or similar private purposes of up to one year are excluded (Section 9 sentence 3 AO). How these limits are drawn in practice is described in the article on the rule of 183 days and the habitual abode.
Both provisions focus on the actual circumstances, not on the population register (Melderegister). Deregistration therefore does not protect against tax liability if the centre of one’s life has in fact remained in Germany. Conversely, a continuing registration does not automatically cancel an emigration. However, the tax authorities generally regard registration and deregistration as an indication of the establishment or abandonment of a residence (Application Decree on the Fiscal Code, Anwendungserlass zur Abgabenordnung, on Section 8). Anyone who remains registered must therefore expect enquiries and be able to prove that the dwelling has actually been given up.
Increased Duty to Cooperate in Cross-Border Matters
In addition, there is Section 90 (2) AO. Where events abroad are concerned, the taxpayer must clarify the facts themselves and obtain the necessary evidence. They cannot claim to be unable to clarify the facts or obtain evidence if they could have secured this possibility when arranging their affairs. If they breach these duties, the tax office (Finanzamt) can estimate the tax base to their detriment. An incorrect registered address makes it harder to document the abandonment of the residence convincingly.
Further Circumstances That May Point to a Residence in Germany
In addition to the registered address, the tax authorities examine further actual circumstances:
- Available dwelling: A dwelling that is accessible at any time, or a room of one’s own, for example in the parental home, can establish a residence if it is used regularly, for example for several weeks every year.
- Tenancy kept “just in case”: If the previous dwelling continues to be rented and is not let to others, this as a rule indicates a continuing residence.
- Holiday home: Regular personal use for several weeks can suffice; letting exclusively to others generally does not establish a residence.
- Family: If a spouse or minor children remain in the previous dwelling, this is a weighty circumstance that must be examined separately.
- Longer stays in Germany: A continuous stay of more than six months establishes a habitual abode, even without a dwelling of one’s own.
Dual Residence and Its Consequences
Anyone who does not effectively give up a German dwelling and is also considered resident in the destination country may be subject to unlimited tax liability in both states. The tie-breaker rule of a double taxation agreement then decides which state has the primary right to tax. How residence is proven is explained in the article on the certificate of tax residence.
If the abandonment of the residence is not properly documented, estimated tax assessments and back taxes for past years may follow, together with interest under Section 233a AO. Anyone who, despite continuing tax liability, files no returns or incorrect returns risks, in individual cases, an allegation of tax evasion under Section 370 AO.
Child Benefit and Social Benefits
Many benefits are linked to a residence or habitual abode in Germany. What matters are the actual circumstances, not the population register.
Child Benefit
Child benefit (Kindergeld) under the Income Tax Act is in principle granted to anyone who has a residence or habitual abode in Germany (Section 62 (1) sentence 1 no. 1 EStG). After moving abroad, the entitlement may lapse, but in certain cases it can continue, for example in the case of unlimited tax liability under Section 1 (2) or (3) EStG (Section 62 (1) sentence 1 no. 2 EStG) or when moving within the EU under Regulation (EC) No 883/2004. Details are explained in the article on child benefit after emigration.
Anyone receiving child benefit must notify the Family Benefits Office (Familienkasse) without delay of any changes in circumstances relevant to the benefit (Section 68 (1) EStG). This includes moving abroad. Since child benefit is paid as a tax rebate (Steuervergütung) (Section 31 sentence 3 EStG), concealing the move can constitute tax evasion (Section 370 (1) no. 2 AO). In addition, child benefit paid without entitlement will be reclaimed.
Basic Income Support and Other Social Benefits
Benefits under Book II of the Social Code (SGB II), referred to since 1 July 2026 as basic income support (Grundsicherungsgeld), require a habitual abode in Germany (Section 7 (1) sentence 1 no. 4 SGB II). The duty to report changes relevant to the benefit follows here from Section 60 (1) sentence 1 no. 2 SGB I. Anyone who conceals a move abroad and continues to receive benefits risks, in addition to repayment, criminal proceedings for fraud by omission (Sections 263, 13 of the Criminal Code, Strafgesetzbuch, StGB). Fraud is punishable by imprisonment of up to five years or a fine; in particularly serious cases, for example where the offender acts on a commercial basis, imprisonment of six months to ten years may be imposed (Section 263 (3) StGB).
Health insurance also follows its own rules. Whether and how statutory insurance continues after moving abroad depends on the insurance status and the destination country, not on the registered address. For more detail, see the article on cancelling German statutory health insurance when emigrating.
Voting Rights: Application Procedure Instead of a Registered Address
A common motive for keeping the registered address is the right to vote: anyone who remains registered is automatically entered in the electoral register (Wählerverzeichnis) and receives the poll card (Wahlbenachrichtigung).
For Bundestag and European elections, the right to vote is not automatically lost when moving abroad. Under Section 12 (2) of the Federal Elections Act (Bundeswahlgesetz, BWahlG), Germans abroad can vote if, after reaching the age of 14, they lived in Germany for at least three months without interruption and this was not more than 25 years ago, or if for other reasons they are personally and directly familiar with and affected by the political situation in Germany. A corresponding rule applies to European elections (Section 6 (2) of the European Elections Act, Europawahlgesetz). An application for entry in the electoral register is required, which must be made anew for each election and must reach the municipality no later than the 21st day before the election (Section 18 (1) of the Federal Electoral Regulations, Bundeswahlordnung). For state and local elections, state law as a rule requires a residence in the respective federal state.
Anyone who circumvents the application procedure by means of a sham registration takes part in elections on an incorrect basis. Anyone who obtains entry in the electoral register through false statements or votes without being entitled to do so may be committing a criminal offence (Sections 107a, 107b StGB).
Driving Licence and Motor Insurance
Within the EU and the EEA, driving licences are mutually recognised (Directive 2006/126/EC). Whether and for how long a German driving licence is valid in a third country outside the EU and the EEA depends on the law of the destination country and should be clarified there. Information on conversion is provided in the article on driving licence conversion after emigrating.
In motor insurance, information on the keeper’s place of residence and the location of the vehicle is often relevant to the premium. If this information is no longer accurate, additional premium claims or contractual penalties may follow, depending on the contract. If fraudulently false information was already given when the contract was concluded, the insurer may be entitled to rescind the contract (Section 22 of the Insurance Contract Act, Versicherungsvertragsgesetz, VVG, in conjunction with Section 123 of the Civil Code, BGB). In motor third-party liability insurance, the insurer’s exemption from liability towards the policyholder in the event of a breach of obligations or an increase in risk is as a rule limited to EUR 5,000 (Section 5 (3) of the Motor Vehicle Compulsory Insurance Regulation, KfzPflVV); injured parties remain protected. In comprehensive and partial cover (Kasko) insurance, the insurer can be released from liability to a greater extent (Section 28 VVG).
Why the Registered Address Is Kept Nonetheless
The motives are understandable: bank account, health insurance, child benefit, postal voting and an easy return. None of these goals, however, can be lawfully achieved through a sham registration. Banks and insurers check the actual place of residence using further criteria, health insurance follows social security rules, and for child benefit and voting rights there are orderly procedures for Germans living abroad. Anyone who uses these procedures faces a manageable amount of additional administration. Anyone who relies on a sham registration instead accepts the risk of fines, tax proceedings and, in individual cases, criminal proceedings, which often coincide once the situation is discovered.
Overview of Risks
← Tabelle nach links wischen, um weitere Spalten zu sehen
| Area of law | Legal basis | Possible consequence |
|---|---|---|
| Registration law, failure to deregister | Section 17 (2), Section 54 (2) no. 2, (3) BMG | Fine of up to EUR 1,000 |
| Registration law, sham registration | Section 19 (6), Section 54 (1), (3) BMG, Section 14 OWiG | Fine of up to EUR 50,000, also for participants |
| Income tax | Section 1 (1) EStG, Sections 8, 9, 90 (2) AO | Continuing tax liability, estimated assessment, interest under Section 233a AO |
| Child benefit | Sections 62, 68 EStG, Section 370 AO | Repayment, criminal tax proceedings |
| Basic income support and other SGB benefits | Section 7 SGB II, Section 60 SGB I, Sections 263, 13 StGB | Repayment, fraud proceedings |
| Voting rights | Section 12 (2) BWahlG, Sections 107a, 107b StGB | Removal from the register, criminal liability for false statements |
| Motor insurance | Sections 22, 28 VVG, Section 5 (3) KfzPflVV | Additional claims, reduced benefits |
Example
Example: Tobias and Julia move permanently with their two children to a country outside the EU. They do not deregister and remain registered at the address of Julia’s parents. Child benefit continues to be paid; the Family Benefits Office is not informed. Three years later, the foreign postal address is noticed during a review. They face repayment of the child benefit and criminal tax proceedings because the move was concealed, administrative fine proceedings for the failure to deregister, and enquiries from the tax office, which, because of the continuing registered address, examines whether the residence in Germany was actually given up. Timely deregistration, notification to the Family Benefits Office and a documented abandonment of the residence would probably have avoided these proceedings.
Conclusion
Keeping a German registered address despite actually emigrating seems like a pragmatic interim solution. Legally, however, it creates a sham residence that can trigger risks in several areas of law: fines under the Federal Registration Act, doubts as to whether the tax residence has been given up, repayment of child benefit and social benefits with possible criminal or administrative fine proceedings, and consequences for voting rights and insurance. Anyone who emigrates should therefore treat the question of residence as an integral part of their emigration planning and document the abandonment of the German residence in a traceable manner.
FAQ
May I keep my registered address in Germany when I emigrate?
No, not if you no longer actually live in the dwelling. Anyone who moves out and does not move into a new dwelling in Germany must deregister within two weeks (Section 17 (2) BMG).
How high is the fine for failing to deregister?
Up to EUR 1,000. Anyone who provides an address for a sham registration risks up to EUR 50,000, and participants can also be held liable (Section 54 (3) BMG, Section 14 OWiG).
Am I liable to tax just because I am still registered?
Not for that reason alone. What matters are residence and habitual abode under Sections 8 and 9 AO. Registration is, however, an indication, and in cross-border matters you bear an increased duty to cooperate.
What happens to child benefit if I do not report the move?
The child benefit can be reclaimed. Since it is a tax rebate, concealing the move can constitute tax evasion (Section 68 (1) EStG, Section 370 AO).
Can I vote in Bundestag elections from abroad?
Yes, subject to the requirements of Section 12 (2) BWahlG. For this, an application for entry in the electoral register is required for each election, no later than the 21st day before the election.
Attorney Dr. Johannes Fiala and the Munich-based firm, which focuses on international tax and asset law, support clients in the legal structuring of their move abroad, from deregistration under registration law and the abandonment of the tax residence to coordination with the Family Benefits Office and benefit agencies. Dr. Fiala has published extensively on tax and asset law issues. Please get in touch with the firm without obligation to discuss your situation in an initial consultation.
