Moving to and managing money in Germany

Work, family and other permissions are tied to a purpose. Nationals of some countries can start work more easily than others. Read the permission you are given, including any limit on the employer or the role.

Registering your address with the local authority is a practical step that other processes often wait on. It is not, by itself, a decision about tax residence.

A local account is difficult to avoid if you are paid in Germany and paying rent. Banks ask for identification, the registered address and, in many cases, a tax identification number.

If you will keep accounts abroad, expect questions both from the German bank and, later, on the tax return.

Residents are generally taxed on worldwide income. Employment income is often withheld through payroll, which does not remove the need to check whether a return is required.

The tax class used for payroll withholding is an administrative setting. It is not the whole of your tax position, particularly in the year you arrive or if you have income from another country.

Most internationals rent, at least at first. A lease, the deposit and what the landlord can ask for are worth reading carefully. In tight city markets, start before you arrive if you can.

Buying is a notarial process, with a property transfer tax that varies by state. Model that cost before you treat the asking price as the price.

Foreign funds and broker accounts can be taxed and reported differently once you are resident. Some platforms will not accept a German address for an account opened elsewhere.

Employer pension arrangements and a pension you already hold abroad need to be looked at together, not as substitutes.

Employees are often covered through the statutory health system. Private and international policies do not automatically satisfy that requirement, and switching later can be difficult.

Liability insurance is widely held and inexpensive relative to the argument it prevents. Check what an employer policy actually covers before you assume you are finished.

A German employer, a foreign employer with you sitting in Germany, and your own company are three compliance pictures. The middle one is the one people most often misunderstand.

Forming a company is a defined process. Registering for tax and finding a bank that will take a new company take longer.

Salary in euros and rent in euros remove one conversion. Savings you bring from another currency should still be priced, especially if they will sit in Germany for years.

A landlord’s deposit and the first month’s rent are ordinary payments. Keep the lease so the bank, and you, can see what they were.