Living and Working in Germany
Quick links: Accommodation / Bank Accounts / Healthcare / Pay & Bens / Tax / Visas / Travel
Accommodation
There are several approaches to finding a place to live in Germany. The first, probably the quickest and certainly the most expensive is through a real estate agent. Alternatively you could find a place through the regional newspapers or the Internet. You’ll also have to pay the deposit, but there is no fee.
It's advisable to employ the services of a lawyer or legal advisor before signing a lease. Even if you speak excellent German, the lease may be too long and too couched in legalese for a layman to comprehend.
Payment to the landlord, usually made monthly, is in two parts: the rent, which can't be changed for the duration of the lease; and the Umlagen, or cost allocation, which can be. The Umlagen pays a share of the landlord's property tax and utilities. If the price of one of these is raised during the rental period, your Umlagen rises accordingly. You generally pay separately for your electricity and gas, though these can be included in the Umlagen.
When you leave a rented apartment, you are expected to return it in an absolutely immaculate condition.
Bank Accounts
Opening an account is straightforward, you just need your passport and your residence permit. Once you have opened the account, the bank will issue you with al Debit card (EC) for use at ATMs or to pay at department stores, supermarkets, ticket vendors and hotels.
Healthcare
The average health insurance rates charged by the Krankenkassen are approximately 15%, based on your monthly salary. Your employer will pay the same sum directly to your insurance. Members of the state health plan can shop around for the cheapest provider of supplemental insurance.
Private Health Insurance gives you a wider choice in terms of doctors and hospitals. They also pay for alternative medicine, give higher reimbursements for dental work and pay for glasses and contact lenses.
You and your dependents are automatically enrolled in the government’s long-term nursing care scheme. This presently costs 1.7% of your gross salary (a maximum of approx. 60 Euros per month) of which your employer pays half.
Pay & Benefits
The German salary rates are generally high. In many senior positions, a company car is part of the package. Bonuses are often tied to performance. Holiday pay and a Christmas bonus are standard
Tax
Expatriates living in Germany are subject to German taxes, especially if they have German source income. The German tax system is similar to the structures in other western countries.
You pay income taxes throughout the year, usually with an employer deducting tax from each paycheque. Adjustments are then made at the end of the year for possible under or overpayments.
Personal income tax rates in 2008 are progressive, up to 45%. The standard VAT rate is 19% and there is also a reduced rate of 7%. These taxes pay for a comprehensive social welfare system that covers social insurance, health insurance, unemployment insurance, accident insurance and social aid.
Visas
Obtaining a visa is an extremely complex area depending on where you come from and what your skills are. Obtaining a residence permit can also be a time consuming process
Travel
Public transport is outstanding here. An extensive railway system connects the whole country. There are also low-cost airlines that connect the bigger cities. Most cities have trams or a reliable underground.
This is the country of the car. There are excellent roads and no speed limits on the German autobahns. If your driver's license was issued by a European Union country, it is fully valid here. If not, you need to exchange it for a German one after six months, or apply for an extension.
