Transferring residence
What is personal property (property moved in connection with a transfer of residence)?
Although there are not any specific numerical restrictions on the type or quantity of the goods that are registered as property being moved in connection with a transfer of residence, it should be clear that it does not have any commercial character.
The following are seen as property being moved in connection with a transfer of residence:
- Household effects, that is: all personal effects, household linen, furnishings and equipment intended for the personal use of the individuals concerned or for meeting their household needs;
- Private vehicles of any kind, that is: cycles and motor cycles, private motor vehicles and their trailers, camping caravans, pleasure craft and private aeroplanes (it must be shown on the basis of a certificate of the authorities of the country concerned that the vehicle and/or aeroplane has been registered in the name of the person transferring his residence);
- Household provisions in quantities appropriate to normal family requirements, on the basis of normal requirements in the former area of residence;
- Household pets and saddle animals;
- Portable instruments and equipment of the applied or liberal arts required by the person concerned for the pursuit of his trade or profession.
The restrictions that apply when returning from a non-EU country must also be observed in the case of property moved in connection with a transfer of residence, because certain goods such as weapons and ammunition, or protected species of animals and items made from them are subject to approval requirements or bans in Germany.
Information about restrictions
The following are not seen as property being moved in connection with a transfer of residence:
- alcoholic products,
- tobacco and tobacco products,
- commercial means of transport,
- articles for use in the exercise of a trade or profession, other than portable instruments of the applied or liberal arts.
Conditions and arrangements for relief from customs duty
Conditions
One of the conditions for the recognition of goods as personal property, that is property moved in connection with a transfer of residence, is that the normal place of residence outside the customs territory of the Community must have been maintained for at least twelve months. Exceptions may be permitted when the beneficiary can show (on the basis of his contract of employment, for example) that he had at least intended to live outside the EU for twelve or more months.
The granting of relief as property moved in connection with a transfer of residence is dependent upon the new normal place of residence being established - if only temporarily - in Germany.
The goods must actually be possessed by the beneficiary and, in the case of non-consumable goods, have been used by him for a minimum of six months before the date of his transfer of his normal place of residence into the EU. This is to be shown on the basis of invoices, contracts of sale, and so on. The property moved in connection with a transfer of residence may only be used at the new normal place of residence for the same purposes as previously.
If motor vehicles or private aeroplanes are registered as property moved in connection with a transfer of residence it must be shown (for example by presentation of a certificate from the competent foreign authority) that the vehicle and/or aeroplane had been registered in the name of the person transferring his residence.
Clearance as import duty-free personal property is only possible within a period of twelf months after transfer of the normal place of residence to Germany. The required customs declaration must generally be submitted by the beneficiary upon the personal property's import. The property moved in connection with a transfer of residence may also be imported in separate consignments. The overall twelve-month period may not, though, be exceeded.
Personal property may be imported in advance if the beneficiary undertakes to establish his usual place in the customs territory of the EU within six months. This requires the provision of a security.
Purpose limitation
Property moved in connection with a transfer of residence entered for free circulation for a specified end-use remains under customs supervision. This means that they may not be transferred to any other person; that is, they may not be lent, pledged, hired out, or transferred, whether for a consideration or free of charge, until twelve months have elapsed from the date of the acceptance of their entry for free circulation.
If the beneficiary is in breach of these provisions, that is, if he removes the goods from customs supervision, the exemption is cancelled, a customs debt is incurred, and the duties on the relevant goods - irrespective of any criminal of administrative proceedings - levied subsequently.
Legal basis
Article 3 and following articles of Regulation (EC) No 1186/2009
Customs declaration/Forms
In the case of goods for which it is intended to claim special relief, the application for release for free circulation must always be made in writing, using form 0350 "Customs declaration for the release of personal property entered for free circulation with a specified end-use" (Zollanmeldung für die Überführung von Übersiedlungsgut in den zollrechtlich freien Verkehr zur besonderen Verwendung).
Import turnover tax, excise duty, vehicle tax
Goods that are legally seen as property moved in connection with a transfer of residence and are entered for free circulation as such are exempt from import turnover tax, but not from any excise duty that may be applicable.
Vehicles registered in a third country that are released for free circulation at German customs offices as, for example duty free personal property moved in connection with a transfer of residence, are subject to German vehicle tax.
The Vehicle Tax Act does not provide for a tax exemption for the journey to the vehicle’s place of registration in Germany. The driver submits a tax declaration to the border customs office; the tax is immediately payable there. After payment of the tax, the border customs office issues a tax card and receipt as a record of tax paid.
