A tax lawyer, also known as a tax attorney, is a lawyer who specializes in advising and representing clients in tax law matters. This includes support with tax planning, representation before tax courts or in negotiations with the tax authorities, as well as advice on the tax structuring of contracts and transactions. Tax advisors as non-lawyers can also cover the above areas. However, tax consultants are rarely involved in forensic work. Lawyers, on the other hand, regularly represent clients in litigation.

Tax lawyers can work in various areas and companies, including in tax consulting and auditing firms, in law firms specializing in tax law and in the legal or tax departments of large companies. There are also opportunities in public administration, for example at tax offices or ministries. Tax lawyers, tax specialists and tax consultants can also work in international organizations and NGOs, even when it comes to international tax policy issues.

Tax lawyers and tax advisors are constantly faced with the challenge of adapting to changing tax laws and guidelines. They must interpret and apply complex and often ambiguous legislation in order to provide effective advice to their clients. The work requires a high level of attention to detail in order to avoid mistakes that could lead to financial losses or legal problems. In addition, tax lawyers and tax consultants must communicate effectively with tax authorities and represent clients in audits and legal disputes, which requires strong negotiation and persuasion skills.

The prospects for tax lawyers on the job market are generally positive. Due to the constant changes in tax law and the increasing complexity of tax legislation, there is a high demand for experts in this field. In addition, globalization and international tax issues are opening up further career opportunities. Specialization and continuous further training are key to long-term success and promotion opportunities in this professional field.

Keyfacts Rechtsanwalt für Steuerrecht

What tasks does a lawyer for tax law have?

Contrary to all preconceptions, the work of a tax lawyer, tax specialist or tax consultant is anything but monotonous and dry. Tax law is extremely complex and penetrates almost every conceivable area. This diversity requires that tax lawyers at least have an in-depth basic understanding of other areas of law, as tax law is interwoven with other areas of law. It is precisely this overlapping of legal areas that makes working as a tax lawyer, but also as a tax consultant, so exciting.

In principle, however, the tasks of a tax lawyer should not be confused with those of a tax consultant: tax lawyers mainly deal with tax law and its application and interpretation, including in litigation, while tax consultants deal directly with tax advice, tax returns and tax structuring. For court proceedings, they consult lawyers (unless they are also lawyers themselves).

A tax lawyer and tax consultant plays a crucial role in the world of legal advice. Their responsibilities vary depending on their specialization and the context of their work, but typically include the following areas:

Advice on tax issues

Tax lawyers advise individuals, companies and organizations on tax matters to ensure that they act in accordance with current tax laws and regulations.

Tax planning

Tax lawyers develop strategies to minimize the tax burden through legal tax avoidance options and optimize the financial planning of their clients.

Representation before tax authorities

Lawyers for tax law represent and support their clients in tax audits, inquiries and disputes with the tax authorities.

Preparation and review of tax returns

Although this is more often the task of tax advisors, tax lawyers can assist with the preparation and review of tax returns in complex cases.

Support in setting up and structuring a company

In addition, tax lawyers advise on the tax implications of various corporate structures and help with company formation to ensure tax efficiency.

Advice on international tax issues

Tax lawyers who specialize in international tax law advise their clients on double taxation, transfer pricing and other cross-border tax issues.

Negotiation of tax agreements

Tax lawyers can intervene in negotiations with tax authorities to negotiate settlements or payment plans for their clients.

Legal remedies and court proceedings

In cases where no agreement can be reached with the tax authorities, tax lawyers can represent their clients in appeal proceedings and in court.

Compliance and due diligence

Tax lawyers ensure that companies and individuals comply with all relevant tax regulations and develop compliance strategies. They also carry out due diligence reviews for company takeovers and mergers.

Overall, a tax lawyer is a competent contact for all questions relating to tax law and can help to settle tax matters in the best possible way and avoid or successfully resolve disputes.

We understand the different skills that a tax lawyer, tax specialist or tax consultant needs.

What skills does a tax lawyer need?

The competencies of a tax lawyer are diverse and encompass a broad range of skills, including both technical knowledge and interpersonal skills.

Overview of the key skills of lawyers specializing in tax law (partly tax specialists, tax consultants)

Comprehensive understanding of tax law

Tax law is a highly complex subject that is made up of a large number of laws, regulations, directives and court decisions. An in-depth understanding of tax law enables tax lawyers to identify the relevant regulations for specific situations and apply them correctly.

Strategic planning capability

The tax planning and structuring of business transactions, corporate structures and private asset successions is an important part of the tax lawyer's work. This requires not only a comprehensive understanding of current tax law, but also the ability to think ahead and analyze complex issues, taking into account future developments and possible changes in tax law.

Negotiating skills

Tax lawyers need negotiating skills not only in negotiations with tax authorities, where the aim is usually to reach a consensus or a solution that is advantageous for the client, but also when representing their clients in disputes or in interdisciplinary cooperation with specialists from other fields, such as auditors, management consultants and lawyers from other disciplines.

Communication skills

For this reason, the tax lawyer should also have excellent communication skills in order to be able to communicate complex tax law concepts clearly and comprehensibly to clients, courts and other "non-specialists".

Attention to detail

The need for attention to detail for tax lawyers arises from the complexity and specific requirements of tax law. Small details in legal texts, regulations or directives can have a significant impact on the tax treatment of specific issues. Precise knowledge and attention to these details are crucial in order to make correct legal assessments and ensure compliance.

Time management and organization

In tax law, there are numerous deadlines that must be met, such as submission deadlines for tax returns, deadlines for appeals against tax assessments or deadlines for the submission of documents to the tax authorities. Missing deadlines can lead to disadvantages for clients such as late payment penalties, interest or the loss of legal remedies. Every professional tax lawyer should therefore have good time management and strong organizational skills.

How do you become a lawyer for tax law?

But how do you become a tax lawyer? The first step on the path to becoming a tax lawyer is to successfully complete a law degree at a university. Studying law in Germany usually involves nine semesters of full-time study and concludes with the first state examination. During your studies, it is advisable to concentrate on tax law content by choosing appropriate specializations and attending relevant lectures and seminars. This is followed by the legal clerkship, also known as preparatory service. During this time, trainee lawyers go through various stages, including at courts, in law firms and often also in the tax administration or at companies in the tax sector. At the end of the legal clerkship is the second state examination, which tests not only legal knowledge but also the practical knowledge gained during the clerkship.

By passing the second state examination, you fulfill the formal requirements to be admitted to the bar. Admission is granted by the respective bar association. In order to be able to use the title "Specialist lawyer for tax law", the lawyer must complete another special specialist lawyer training course after being admitted and have worked on a certain number of cases in the field of tax law.

How much does a tax lawyer earn?

And how much does a tax lawyer or tax consultant earn? The salary of a tax lawyer and a tax consultant in Germany can vary greatly and depends on several factors, including industry, region, company size and, last but not least, the lawyer's professional experience.

The sector in which a tax lawyer works plays a significant role in the salary level. Lawyers who work for large commercial law firms or internationally active consulting firms can generally expect a higher income than those who work for smaller law firms, non-profit organizations or in public administration. Salaries in commercial law firms and management consultancies are often particularly attractive due to high client demand and the complex consulting requirements in tax law.

The size of the law firm or company for which a tax lawyer works also has an impact on salary. Large law firms and companies with extensive tax law departments generally pay higher salaries than smaller practices. This is partly due to the greater number of large mandates and the associated higher level of responsibility that these positions entail.

The region in which a tax lawyer practices also has an influence on salary. In large economic centers such as Frankfurt, Munich or Düsseldorf, the cost of living is higher, which is also reflected in salaries. Lawyers in these cities generally earn more than their colleagues in smaller cities or rural areas.

Professional experience is one of the most important factors for the salary of a tax lawyer. Young professionals typically start with a lower income of around 60,000 to 80,000 euros per year. At large international law firms, you can also start with an annual salary of 150,000 euros or more. With increasing experience and specialization, these salaries can rise to 100,000 to 200,000 euros or more. Experienced lawyers who have made a name for themselves in the sector can expect above-average remuneration of up to 400,000 euros a year through complex mandates, partner positions in law firms or leading positions in corporate tax departments. Many law firms and companies offer bonuses and additional benefits on top of the basic salary. Equity partners in a major international law firm or auditing company often earn over 1,000,000 euros.

The same applies to tax consultants as described above. However, it can be said that lawyers who are also tax advisors often earn more than tax advisors with, for example, a degree in business administration from a university of applied sciences and the title of tax advisor.

Note: The salary figures given here are for guidance only. As in many other sectors, it is difficult to make general statements about individual salaries in the legal sector.

What is a lawyer for tax law?