Settling in a new country often involves complex administrative procedures, and language can frequently be a barrier.
In this article, our advisors have compiled the essential information you need for a smooth relocation in compliance with German laws.
1. The Anmeldung: Registration at the Town Hall
The Anmeldung is the registration at the town hall in Germany, and it is mandatory.
Whether for employment or an internship, your employer will request your Anmeldung. This registration will also be required for other administrative procedures.
It will then allow you to obtain a tax identification number (Steuer-ID) to work in Germany, or even open a bank account. Without the Anmeldung, you will not be able to create a business or receive family benefits.
Therefore, this registration at the town hall should not be overlooked!
However, there are two exceptions where the Anmeldung is not mandatory:
- If you stay in Germany for less than 3 months.
- If you move within the next 6 months: If you are registered elsewhere and stay at your new address for less than 6 months.
To complete your Anmeldung, you must appear in person at your city’s Bürgeramt, by appointment. You have
Before coming to the appointment, please ensure you bring the following documents:
- The completed and signed form for Anmeldung bei einer Meldebehörde.
- A valid ID card or passport.
- A certificate of residence (Wohnungsgeberbestätigung) signed by the landlord or subtenant. You must obtain it before moving in.
- Your marriage certificate and/or your child’s birth certificate if your partner and children reside in Germany.
- A power of attorney completed and signed by you if you are sending another person to register on your behalf.
- If you have a vehicle registered at your previous address, you will need to bring your “Zulassungsbescheinigung“.
Additionally, if you plan to leave Germany, you will need to complete your deregistration Abmeldung, which is also mandatory.
Good to know: during your first Anmeldung, you will be asked about your religion. Depending on your answer, you may have to pay a church tax.
2. Bank Accounts in Germany
A. How to Open a Bank Account
The three main bank accounts you should know about in Germany are the current account (Girokonto), the savings account (Sparkonto), and the blocked account (Sperrkonto).
The Girokonto account is highly recommended when you settle in Germany. Conveniently, we offer free accounts at Deutsche Bank.
The documents you will need to provide are the following:
- A valid ID card or passport.
- Your Anmeldung.
- Make an initial deposit, which may vary depending on the bank.
- Proof of income.
- Your tax identification number.
B. Bank Cards in Germany
There are different types of bank cards, each with its own advantages and disadvantages.
- The EC-Karte/Girocard, which is the equivalent of a standard debit card. It is accepted almost everywhere in Germany. However, it cannot be used abroad.
- The credit card (Kreditkarte) can be used abroad, but it is less accepted in small German businesses. With this card, your purchases are only debited at the end of the month or after a defined period.
- There is also the international debit card or the prepaid card (Prepaid Kreditkarte).
Good to know: in Germany, cash is often preferred as a method of payment. Some establishments only accept cash. So, always carry some cash with you!
3. Civil Status
A. Identity Card and Driving License
As a French expatriate, you may keep your French identity card, just as you may keep your French driving license. You can personally apply to exchange your French driving license for a German one.
B. Marriage/Divorce
French marriage is recognized in Germany, but please note that PACS (Pacte civil de solidarité) is not. If you were married in France, you can file for divorce in Germany.
In Germany, before a divorce, the couple must be separated for one year (economic and physical separation). This year of separation is called “Trennungsjahr” and can be shortened in various situations.
To file for divorce, you must go to the family court in your place of residence or that of your spouse. You cannot file the application personally, as you are required to be represented in court by a lawyer, a process known as “Anwaltzwang”.
Having your divorce, pronounced in Germany, recognized in France requires a procedure for the recognition of judgment. This procedure is essential as it will allow you to update your French civil status record and prove your single status if you wish to remarry or enter into a PACS.
C. Family Benefits (Kindergeld)
Family benefits amount to €250, paid by the state, per month and per child. If parents are separated, the benefit will go to the parent with whom the children live.
The benefit is paid for children under certain conditions:
- For children under 18 years of age.
- For those aged 18 to 21, unemployed and registered as job seekers with an employment agency.
- For those aged 18 to 25 if they are pursuing higher education or vocational training (they must not work more than 20 hours per week), if they are undertaking a year of voluntary service, or if they cannot find an apprenticeship position.
- Regardless of their age, if they are unable to support themselves due to a disability. The disability must have occurred before their 25th birthday.
- Up to 27 years of age for orphans.
The documents to be provided to the Family Benefits Fund are as follows:
- Family benefits application form.
- Form E 401 (certificate concerning your family composition).
- Birth certificate extract for your child or children.
- Bank account details (RIB).
- Certificate of payment cessation or non-payment from the family benefits fund in your place of residence.
Note: A supplement, called “Kinderzuschlag,” may be paid when the parent’s income is insufficient. Additionally, parental allowance (Elterngeld) and parental leave are other forms of assistance offered by the state.
4. Salary in Germany
The difference between gross and net salary in Germany is more significant than in France.
Note: In Germany, taxation occurs throughout the year! Thus, net salaries are also net of taxes.
The main taxes in Germany are:
- Wage tax (Lohnsteuer), which is calculated based on your tax class (Steuerklasse) and is progressively levied according to income.
- Church tax (Kirchensteuer), which varies by federal state (Länder), represents approximately 8 to 9% of income tax and is applicable depending on your religion.
- Solidarity surcharge (Solidaritätszuschlag), which amounts to 5.5% of your income.
Subsequently, mandatory social contributions are deducted from the salary, and their amount varies accordingly.
These include:
- Public pension (18.6% of gross income).
- Unemployment insurance (2.4% of gross income).
- Public health insurance (14.6% of gross income, with a supplement of 0.7% to 1.3% depending on the health insurance fund).
- Public long-term care insurance (3.05% of gross income, with a surcharge of 0.35% for individuals without children).
Note: In Germany, contributions are equally distributed between the employer and the employee, i.e., 50/50.
5. Insurance in Germany
A. Pension and Unemployment Insurance (Rentenversicherung and Arbeitslosenversicherung)
Pension insurance is mandatory. Click here to understand how the pension system in Germany works.
Unemployment insurance is also mandatory, with a contribution of approximately 2.4% of the gross salary. Employees who have been dismissed and have contributed for at least 12 months within the last 30 months can receive
B. Health Insurance (PKV, GKV, supplementary)
Health insurance in Germany is mandatory. It is divided into two categories: private insurance and public insurance. The choice between these two categories depends on your status.
Click here to find our article on health insurance.
C. Home and Liability Insurance (Hausratversicherung and Haftpflichtversicherung)
In France, liability insurance is mandatory and included in home insurance, which is not the case in Germany. However, it is highly recommended, as is home insurance, which is also not mandatory.
Click here to find our article on home and liability insurance.
D. Car Insurance (Kfz-Versicherung)
To learn everything about car insurance and the rules to follow, please refer to our article “My Car in Germany: What You Need to Know”.
E. Legal Protection Insurance (Rechtsschutzversicherung)
Legal protection insurance covers costs related to a dispute. Although not mandatory, it is frequently used in Germany, as an increasing number of conflicts are settled in court.
It can be useful in private, professional, housing, or automotive contexts.
F. Occupational Disability Insurance (Berufsunfähigkeitsversicherung)
Occupational disability occurs when a person is no longer able to perform their job long-term (which is different from sick leave) and therefore no longer receives a salary.
To subscribe to occupational disability insurance, it is advisable to start early, as the premium will depend on the person’s age and health. The later you start, the higher the monthly contribution will be.
Note: The German social security system offers low compensation in cases of occupational disability, so do not delay.
G. Accident and Disability Insurance (Privat-Unfallversicherung)
This insurance protects you against accidents occurring in daily life, outside of professional settings, such as at home, during your leisure time, or while traveling.
This coverage is essential, as it complements your health insurance. It provides compensation in case of accidents (incapacity, disability, or uncovered medical expenses) and offers additional services such as a disability pension.
Some insurance policies extend coverage to the entire household. Although not mandatory, it is highly recommended to protect yourself in daily life.
6. Taxes in Germany
Just like in France, you must also pay taxes in Germany.
Specifically, you will have to pay income tax, church tax, property tax, and inheritance and gift tax (the rate varying between 7% and 50% depending on the degree of kinship between the donor and the beneficiary, as well as the value of the assets). Even if you do not own a television or radio at home, you will have to pay the TV/Radio license fee.
The German tax system offers numerous deductions, such as professional expenses, childcare costs, and social contributions.
Note: Tax residents in Germany are taxed on their worldwide income, while non-residents are taxed on their German-sourced income.
7. Housing in Germany
When you arrive in Germany, finding accommodation can be challenging.
Is it better to rent or buy?
Find our article “Buying or Renting in Germany: Which Option to Choose?”
8. Investing in Germany
Investing in Germany offers excellent opportunities for expatriates, whether in real estate, the stock market, or a real estate investment company (SCPI).
Consult our expert advisors to assist you with your procedures and optimize your financial situation.
Conclusion
Please do not hesitate to schedule an appointment with our financial advisors to optimize your situation and fully enjoy your new life in Germany.