Expats living or working in Germany will come into contact with the German banking and taxation systems sooner or later - no matter whether they need to open a bank account, receive their salary, complete a tax return, or simply want to transfer money to and from abroad - so it's worth getting familiar with these topics quickly.
No one likes doing their taxes, not even German citizens. When even the Federal Ministry of Finance admits that taxes in Germany are “complicated”, many expats find themselves scratching their heads. If you are struggling with your taxes, you might benefit from our list of English-speaking tax advisors in Germany.
As an expat in Germany, having a long-term, solid financial plan is important - whether that's just organising your retirement provision or dipping your toe into other topics like investments and asset management. Our list of expat-friendly financial advisors in Germany can help you get your financial affairs in order.
From time to time, every expat in Germany will have to transfer money to and from abroad. There are several different methods in Germany of transferring funds internationally - each with its own pros and cons. The best method for you will depend on the amount, type and timing of the transaction.
Online transfer services offer international currency transfers and payments to both individuals and companies. They work by matching you with people sending money in the other direction, so that your money doesn’t even leave the country. This allows them to offer much more competitive rates than your average high street bank. These companies all offer competitive rates for online money transfers in Germany:
If you are living in Germany (and especially if you are working here), you will need to open a bank account to receive your salary, take out health insurance and pay your utility bills. Our step-by-step guide walks you through the different types of banks available, and the process of opening a bank account in Germany, including setting up internet banking, both as an individual and as a business.
One word you might come across a lot after arriving in Germany is "SCHUFA". SCHUFA is the colloquial word for a credit score in Germany, and you might find that you need one for all kinds of different administrative processes, including opening a bank account, renting an apartment, taking out a loan or buying a car on finance. Learn how to get a SCHUFA report and improve your score in our dedicated guide.
A blocked account is a special type of bank account that enables the holder to prove that they have sufficient financial resources when applying for a German visa or residence permit. It is "blocked" because it requires the account holder to deposit a pretermined lump sum of money, which can then only be withdrawn in monthly instalments.
You can open a German blocked account from abroad in English with one of the following companies:
For more information on opening a blocked account in Germany, visit our Blocked account (Sperrkonto) page.
The German federal government (Bundesregierung) receives the majority of its income from tax revenues. The Federal Ministry of Finance (Bundesministerium der Finanzen) is responsible for all aspects of tax and revenue legislation, while the Federal Central Tax Office (Bundeszentralamt für Steuern - BZSt) and the regional offices (Landesbehörden) execute this legislation.
The administration and revenue of taxes in Germany is split between the federal government and the federal states (Bundesländer). The Federal Central Tax Office acts on the behalf of the federal government and is responsible for:
Most taxes are administered by each federal state’s regional office (Landesbehörde), via the local tax office (Finanzamt). The taxes they are responsible for include:
What are the most common types of tax that you will encounter as an expat working in Germany? How much tax do you need to pay and how do you pay it? Find out everything you need to know about the German tax system.
An important piece of paperwork you will receive after registering is your tax ID (steuerliche Identifikationsnummer). This unique number will be issued to you automatically by the Federal Central Tax Office, and you will need it in order to receive the correct salary, contribute to social security and to pay taxes in Germany.
Many workers in Germany choose to submit an annual tax return. Are you obliged to submit an income tax return? What tax deductions can you benefit from? Here’s the key information on the German annual tax return.
Many people in Germany now do the bulk of their tax administration online, using an online tax office system called ELSTER (ELektronische STeuerERklärung). If you are a business owner or a freelancer, you may be obliged to use ELSTER; otherwise you might just want to take advantage of the features that make doing online tax returns much quicker and simpler. Our ELSTER page walks you through the process of registering for an account and completing your annual tax return online.