Is my FAU stipend or scholarship taxable in Germany?

Stipends from German public sources (DAAD, DFG, university grants) are generally tax-free under §3 Nr. 44 EStG when the recipient is bound by scholarship-program rules and there is no employment relationship. The exemption typically covers monthly stipends and book allowances. Indian-government scholarships may be treated differently depending on the source. If you also have part-time income (Werkstudent, teaching assistantship), you must file a tax return — but the stipend itself usually stays exempt.

I work as a Werkstudent at Siemens — do I need to file a return?

Yes if your annual income exceeds the Grundfreibetrag (€12,096 in 2025). Werkstudent income is taxed via Lohnsteuer at your Steuerklasse rate. Filing is often worthwhile even when not strictly required — many Werkstudenten get a significant refund if they worked only part of the year (the full annual Grundfreibetrag still applies) or had tax withheld above their actual liability. Study-related costs (laptop, textbooks, second-degree tuition) become deductible Werbungskosten.

Can I claim my flight to India as a tax deduction?

Only if the trip was work-related or study-related — e.g. visiting your research supervisor in India, conference attendance, or an internship abroad. Personal home visits are not deductible. If you maintain a Doppelte Haushaltsführung (a separate primary home in India while studying or working in Erlangen), one round-trip flight per year is deductible. The Indian flat must remain your declared "centre of life" for this to apply.

Filing Taxes as an Indian in Erlangen — TaxDost

Local context

Erlangen's Indian community is split between FAU students (Engineering, CS, AI, Medicine) and engineers at Siemens Healthineers. The city is small and walkable — most Indians live near the university south campus or in Büchenbach. Bayern's 8% Kirchensteuer rate (vs 9% in most Bundesländer) lowers the cost of being a registered church member; Kirchenaustritt at the Standesamt costs around €30.

FAU students starting in October or April hit the partial-year Grundfreibetrag windfall every time — our Indian-student tax refund guide walks through the typical first-year reclaim.

What makes Erlangen different

Single Finanzamt covers the whole city — assignment is automatic, no Bezirk lookup
Bayern's 8% Kirchensteuer rate is one of two lowest in Germany
Siemens Healthineers stock options taxable at vesting — high-earning vesting events often produce year-end refunds

Common tax situations in Erlangen

FAU PhD and Master's students on stipends (DAAD, DFG, FAU university grants) — generally tax-free under §3 Nr. 44 EStG up to Grundfreibetrag
Werkstudent jobs at Siemens or local cafés alongside studies — Minijob threshold at €538/month, above which Lohnsteuer applies
Siemens Healthineers Indian engineers with RSU vesting — taxable as ordinary employment income at vesting moment
Mid-year arrivals (September/October FAU intake) — partial-year residency rules trigger full Grundfreibetrag and often a refund on the first return

Your Finanzamt in Erlangen

Single Finanzamt for the whole city — Finanzamt Erlangen, Bohlenplatz 1, 91054 Erlangen, +49 9131 812-0. No district-by-district routing like Berlin or Munich.

Office finder: www.finanzamt.bayern.de/LfSt/Erlangen
Average processing time: 6–10 weeks for digital ELSTER submissions; Bayern is among the faster-processing Bundesländer.
Submission: ELSTER online preferred. Finanzamt Erlangen has familiarity with FAU stipend cases and Siemens Healthineers payroll patterns — clean returns from these employers move quickly.

Indian community in Erlangen

Where Indians live: FAU south campus area (Erlangen-Süd, near the engineering and CS faculties), Büchenbach (more affordable, popular with Master's and PhD students), Innenstadt (newer corporate arrivals to Siemens Healthineers).

Key employers: Siemens Healthineers (the city's largest private employer), FAU Friedrich-Alexander-Universität Erlangen-Nürnberg, Universitätsklinikum Erlangen, Bosch Erlangen, plus the smaller R&D outposts of automotive suppliers in the Nürnberg metro corridor.

Associations & networks: Indo-German Student Association (IGSA) at FAU — one of the most active Indian student bodies in Germany, with strong September-onboarding programs for new arrivals. Tamil and Telugu cultural circles cluster around the university; Diwali at FAU is a major annual community event.

Filing Taxes as an Indian in Erlangen