Learn German: Wohnen Sie in Deutschland?

Because it is paired with Sie, the formal word for "you". In German, when you use the formal Sie, the verb almost always takes the -en ending. This usually makes it look exactly like the dictionary form of the verb.

Why is Sie capitalized even though it is not the first word?

The formal "you" (Sie) is always capitalized in German to show respect. This capitalization also helps you tell it apart from the word sie with a lowercase "s", which means "she" or "they" depending on the context.

Where is the word for "Do" in this question?

German does not use a helper word like "do" to ask questions. Instead, you simply move the main verb to the very beginning of the sentence. By putting Wohnen in the first position, it automatically turns the sentence into a yes/no question.

How would this sentence change if I were asking a friend?

If you were talking to a friend, you would use the informal "you" (du) instead of the formal Sie. When using du, the verb takes the -st ending, so the sentence would become Wohnst du in Deutschland?.