Hauptwohnsitz
Encyclopedia
In German-speaking countries, Hauptwohnsitz (Main domicile) denotes the primary place of residence. In Germany
and Austria
, the concept of Hauptwohnsitz has special legal ramifications, primarily involving tax
.
In Austria
the Hauptwohnsitz has an important meaning in the context of financial
adjustment between the federation and the local municipalities
. On the basis of the census
determined number of inhabitants with Hauptwohnsitz, the municipality receives its budget from the federal government. Hauptwohnsitze count themselves for a municipality in two regards: By the direct payment per head, and an increase in premiums after exceeding certain thresholds for the number of inhabitants. This leads to frequent censuses to match the budget of a municipality to its number of inhabitants.
The Hauptwohnsitz in Germany
is based on the main center of ones' interest (Lebensmittelpunkt). The Hauptwohnsitz is also the place in which one exercises the right to vote, and where the municipal administration issues a citizen's ID card and passport. The income tax revenue is split between the federal government, the Land
government and the municipality where the respective taxpayer has their Hauptwohnsitz. Apart from the Hauptwohnsitz a person can establish multiple secondary places of residence (Nebenwohnsitze, sg. Nebenwohnsitz) where they are also registered as residents but do not have a right to vote. A number of German municipalities impose a secondary-residence tax (Zweitwohnungssteuer) on persons having such a secondary residence, the rationale for that being that they have to provide services to these persons but do not share in their income tax.
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
and Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
, the concept of Hauptwohnsitz has special legal ramifications, primarily involving tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
.
In Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
the Hauptwohnsitz has an important meaning in the context of financial
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
adjustment between the federation and the local municipalities
Municipality
A municipality is essentially an urban administrative division having corporate status and usually powers of self-government. It can also be used to mean the governing body of a municipality. A municipality is a general-purpose administrative subdivision, as opposed to a special-purpose district...
. On the basis of the census
Census
A census is the procedure of systematically acquiring and recording information about the members of a given population. It is a regularly occurring and official count of a particular population. The term is used mostly in connection with national population and housing censuses; other common...
determined number of inhabitants with Hauptwohnsitz, the municipality receives its budget from the federal government. Hauptwohnsitze count themselves for a municipality in two regards: By the direct payment per head, and an increase in premiums after exceeding certain thresholds for the number of inhabitants. This leads to frequent censuses to match the budget of a municipality to its number of inhabitants.
The Hauptwohnsitz in Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
is based on the main center of ones' interest (Lebensmittelpunkt). The Hauptwohnsitz is also the place in which one exercises the right to vote, and where the municipal administration issues a citizen's ID card and passport. The income tax revenue is split between the federal government, the Land
States of Germany
Germany is made up of sixteen which are partly sovereign constituent states of the Federal Republic of Germany. Land literally translates as "country", and constitutionally speaking, they are constituent countries...
government and the municipality where the respective taxpayer has their Hauptwohnsitz. Apart from the Hauptwohnsitz a person can establish multiple secondary places of residence (Nebenwohnsitze, sg. Nebenwohnsitz) where they are also registered as residents but do not have a right to vote. A number of German municipalities impose a secondary-residence tax (Zweitwohnungssteuer) on persons having such a secondary residence, the rationale for that being that they have to provide services to these persons but do not share in their income tax.