How to keep your finances on track when planning your move to or from Germany

Relocating internationally is an exciting chapter, but it can also be financially complex, especially when moving to or from Germany. Whether you're an expat arriving in Berlin for a new job or leaving Munich to return home, managing your finances during this transition is crucial for a smooth and stress-free move.

AGS Movers have helped thousands of individuals and families relocate across borders. Here are their top financial tips to help you stay on track during your international move.

Start with a financial checklist

You might be eager to get packing, but don’t forget the essentials! Ensure that you have the financial resources you will need to complete the immigration process by using this easy-to-follow checklist:

• Moving costs (transport, packing, insurance)
• Visa and legal fees
• Temporary accommodation
• Utility deposits and setup fees
• Currency exchange and banking fees
• Tax implications in both countries

Having a clear overview helps you avoid surprises and plan your budget realistically. Remember that AGS Movers offers a variety of destination services to ensure that your focus remains on your family and your journey to your new home.

Understand tax obligations

Germany has a complex tax system, and your tax residency status can impact your obligations in both your country of origin and destination. To avoid unforeseen complications, below are a few key points to consider when it comes to tax:

• Double taxation treaties: Germany has agreements with many countries to prevent being taxed twice.
• Exit taxes: Some countries may impose taxes when you move assets abroad.
• Income reporting: You may need to report foreign income depending on your residency status. 

Unsure of where you fit into this tax system? Consider consulting a cross-border tax advisor to ensure compliance and optimise your tax position. When it comes to taxes, it’s always best to consult professionals, especially if you are in a region you are unfamiliar with.

Open or update your bank accounts

If you're moving to Germany, opening a local bank account is essential for receiving your salary, paying rent, and managing daily expenses. When opening a bank account in Germany, you will need the following:

• A valid passport
• Your residence permit or Visa
• Your proof of address registration certificate

If you're leaving Germany, you will need to:

• Close unused accounts to avoid fees
• Transfer funds wisely using low-cost international money transfer services
• Notify your bank of your move to prevent your account from being frozen

Remember to ensure all administrative tasks are completed before you depart. It can be tedious to tie up loose ends from another country, especially if you’re moving to another time zone.

Plan for currency exchange

Currency fluctuations can significantly impact your budget. If you're transferring large sums (e.g., for housing or savings), consider the following: 

• Using currency exchange platforms with favourable rates
• Locking in exchange rates through forward contracts
• Avoiding last-minute transfers, which can be costly

There are various service providers that can assist you with finding the optimal means of exchanging your local currency for euros and vice versa. While they sometimes charge a small fee, it’s generally considered worth it to maximise the value of your currency.

Review insurance coverage

Your current health, home, and life insurance policies may not cover you abroad. It is essential to contact your insurance providers to determine exactly what your coverage will be overseas, including any applicable co-payments and excesses, as well as identify their local partners. 

• Check international coverage or switch to expat-friendly providers
• Consider relocation insurance to protect your belongings during transit
• Update beneficiaries and contact details on all policies

AGS Movers offers tailored insurance options to ensure peace of mind during your move.

Budget for hidden costs

International moves often come with unexpected expenses. It’s always best to compensate for this possibility by allowing for a bit extra in your budget. After all, factors such as logistics delays, weather events, and even national holidays can hinder the moving process. Below are more things to keep in mind:

• Storage fees if your new home isn’t ready
• Customs duties on shipped items
• Pet relocation costs
• School enrolment fees for children

Build a buffer into your budget to handle these without stress. This could mean delaying your move for a bit, but it is far better to have a smooth, comfortable transition to your new life compared to a stressful one.

Choose a reliable moving partner

Working with a trusted moving company like AGS Movers can save you time, money, and headaches. With over 50 years of experience and a presence in 100 countries, AGS offers:

• Transparent pricing
• Secure packing and transport
• Digital tracking tools
• Local expertise in customs and regulations

AGS understands the financial and emotional investment involved in international relocation, and they’re here to make it easier.

More than just a logistical challenge

Moving internationally is more than a logistical challenge; it’s a financial journey. By planning ahead, seeking expert advice, and partnering with professionals like AGS Movers, you can keep your finances on track and focus on the exciting opportunities ahead.

Need help with your move to or from Germany? Visit agsmovers.com to get a free quote and start your journey with confidence.