What are the penalties for filing a tax return late in Germany?

If you are required to file a Steuererklärung and miss the deadline, the Finanzamt can charge a Verspätungszuschlag (late filing surcharge). Since 2019, the surcharge is calculated automatically at 0.25% of the assessed tax amount per full month of delay, with a minimum of €25 per month. The maximum surcharge is €25,000.

For example, if your tax liability is €4,000 and you file 3 months late, the surcharge is 0.25% x €4,000 x 3 = €30 per month, so €90 total. The minimum of €25 per month applies if the calculated amount is lower.

If you file more than 14 months after the end of the tax year without a valid reason, the Finanzamt applies the surcharge without further discretion. For voluntary filers (those not legally required to file), there is no penalty for lateness since there is no legal obligation to file. The Finanzamt can also set the assessed tax by estimation (Schätzung) if a return is significantly overdue. Late payment of any resulting tax liability accrues interest at 1.8% per year (since 2019, reduced from a previous 6% rate after a court ruling).