FAQ
In this FAQ, you will find essential answers to facilitate your relocation and integration in Germany.
​
Have a question not covered in the FAQ?
​
Contact us by email at info@fallerfinance.com or by phone at +49 176 20015955.
How can I contribute to the pension system as an expatriate worker?
​If you are an expatriate worker, and depending on the bilateral agreements between Germany and your home country, you can contribute to the pension system by registering with the social security system or the pension scheme in the country where you reside. For self-employed individuals, there are private pension funds that may be more suitable.
How does the German pension system work for expatriates?
​Expatriates contribute to the pension system just like local residents. Contributions are deducted from the gross salary.
​Can I transfer my pension rights from my country to Germany?
​Yes, it is possible to transfer your pension rights, provided that international agreements are respected.
At what age can I retire in Germany?
​The full retirement age is often 67; however, early retirement is possible starting at 63, with pension reductions under certain conditions.
Public or private pension schemes?
In Germany, public pension schemes are financed by mandatory contributions and provide a basic pension; while private pension schemes are voluntary, often based on personal savings or insurance, and may also offer additional benefits.
Which health insurance should I choose - public or private?
​If you are an employee earning an annual gross income below €69,300, you are required to enroll in the public health system. This is known as "Pflichtmitgliedschaft." Conversely, if your annual gross income exceeds this amount, you have the option to choose between public and private health insurance. Self-employed individuals and freelancers also have the choice between the two systems.
​What are the benefits of having legal protection insurance (Rechtsschutzversicherung) in Germany?
​Legal protection insurance is not mandatory, but highly beneficial as it covers the costs associated with legal disputes.
What are the mandatory types of insurance in Germany (car insurance, home insurance, etc.)?
​Mandatory insurance in Germany includes car liability insurance (Kfz-Haftpflichtversicherung), health insurance, and, in some cases, professional liability insurance. Home insurance and disability insurance are not mandatory but are strongly recommended.
Private health insurance (Privatkrankenversicherung): How does it work?
​To subscribe to private health insurance (PKV), you must be self-employed or have a high income. PKV offers more services than public health insurance (GKV), provides quicker access to medical care, and allows for customization of policies to meet your specific needs.
Are there multi-risk insurance policies in Germany that include liability, housing, and accident coverage?
​Yes, multi-risk insurance policies are available in Germany, covering liability, housing, and accidents. These combined policies are common and provide broad protection across various aspects of daily life.
How to protect your savings from inflation?
With inflation, it is important to diversify your investments. Consider investing in real estate, financial markets through stocks, and/or bonds, etc. However, it is also advisable to keep some liquidity on hand for unexpected situations.
How can I open a bank account as an expatriate in Germany?
​To open a bank account in Germany, you will need to provide a current passport or ID card, an Anmeldung (proof of residence), proof of employment or income, and a completed account application form.
How can I save money in Germany?
​Savings strategies vary depending on your goals: short, medium, or long term. In Germany, you can save for retirement, real estate projects, your children, or simply to earn money.
Are there tax benefits related to savings accounts in Germany?
​Yes, some accounts offer tax benefits. For example, retirement savings plans allow contributions to be deducted from taxable income.
What savings products are available in Germany?
Several savings products are available in Germany, including: Sparkonto (savings account), Festgeldkonto (fixed-term deposit), Tagesgeldkonto (instant-access account), Bausparvertrag (home savings contract), Riester-Rente / Rürup-Rente (retirement savings products).
How does the German tax system work for expatriates?
​In Germany, expatriates are subject to the same tax system as residents, with obligations to declare and pay taxes based on their global income. However, they can benefit from international tax treaties to avoid double taxation.
Are there tax treaties between Germany and my home country to avoid double taxation?
​Yes, Germany has tax treaties with many countries to avoid double taxation. Check if there are agreements between your home country and Germany.
What types of taxes do I need to pay in Germany? (Income tax, local taxes, etc.)
​In Germany, you need to pay income tax, value-added tax (VAT), and various social contributions like those for social security and health insurance.
What tax benefits or deductions are available for expatriates in Germany?
​Expatriates can benefit from tax advantages such as deductions for professional expenses, relocation costs, and private insurance contributions, as well as exemptions for expenses related to their expatriate status.
What is the procedure for filing taxes in Germany?
To file your taxes, you need to complete a tax return using the electronic ELSTER form or on paper, including all your income and deductions, and then submit it to the tax office (Finanzamt).
How is capital income taxed?
​In Germany, capital gains are subject to a flat tax rate of 25% (Abgeltungsteuer), with a solidarity surcharge (Solidaritätszuschlag) of 5.5%, and, in some cases, a church tax (Kirchensteuer). They may also benefit from an annual partial exemption (Sparer-Pauschbetrag).
Purchase of a primary residence in Germany?
​If you decide to buy a primary residence, it is important to estimate the costs involved in acquiring the property, assess your repayment capacity, and plan for long-term financial costs and risks.
How can I invest wisely in real estate as an expatriate?
​Real Estate Investment Trusts (REITs) are a good way to invest in real estate. Investing in REITs allows investors to own a fraction of a diversified real estate portfolio.
How does a mortgage loan work in Germany?
In Germany, mortgage loans are often fixed-rate loans for a specified period (10, 15, or 20 years), with a balance to be repaid or refinanced at the end of the term.
German mortgage loans: What are the main differences compared to France?
German mortgage loans have their own characteristics. Here are the key differences to know: the interest rate can be variable, renegotiating the loan is almost impossible, borrower insurance is not mandatory, there is no requirement for a counterparty from the banks, and you only have 14 days to withdraw after the loan is granted.
The various costs involved in buying a property in Germany.
​These costs represent about 10% of the property's price. They include notary fees, registration fees for the transaction, property transfer tax (Grunderwerbsteuer), and, in some cases, real estate agent fees.
I will stay in Germany for five years. Is it more advantageous to buy or to rent?
​With rising rental costs, purchasing a house or an apartment can be advantageous, particularly if you plan to stay for over three years.
​Can I continue to receive health insurance in France for my health?
​Once you are self-employed or employed by a German company, you are no longer covered by the French health insurance system. You will need to obtain health insurance, either public or private, in Germany.
How can I ensure that my child is properly insured?
To ensure your child is well-protected from a young age, consider the following insurances: health insurance (ensure they are covered under your health insurance), supplementary health insurance, liability insurance (even though a 7-year-old is generally not held responsible for their actions, it is still advisable to have liability insurance), and an accident insurance.
Should I take out supplementary health insurance?
​Supplementary health insurance helps cover, to some extent, healthcare costs not covered by public health insurance. It provides high-quality care in areas such as outpatient services, hospitalization, and dental care.
Accident insurance“Unfallversicherung”.
​Accident insurance is not mandatory but is recommended. It covers costs related to an accident, regardless of responsibility. You may receive a lump sum, additional benefits, and/or a monthly pension.
Disability insurance “Berufsunfähigkeitsversicherung”.
​Disability insurance provides financial support if you are unable to perform your job in the long term. It is advisable to take out this insurance as early as possible because premiums are based on your health and age. The later you start, the higher the monthly premium will be.
How does unemployment insurance work for expatriates in Germany?
​If you contribute to public unemployment insurance (Arbeitslosenversicherung), you are eligible for unemployment benefits, provided you have worked a certain number of months and are registered with the employment agency (Agentur für Arbeit).
What state aid is available for expatriates?
​You can benefit from aids such as child benefits (Kindergeld), unemployment benefits, housing subsidies, and, under certain conditions, social assistance like Hartz IV.
Can I receive child benefits in Germany?
​To receive child benefits (Kindergeld) in Germany, you must be a resident, have dependent children, and apply through the family benefits office (Familienkasse) by providing the necessary documents.
What support programs are available for expatriates seeking employment?
​You can access support programs, such as vocational training and counseling services, from the Employment Agency (Arbeitsagentur), as well as unemployment benefits, depending on eligibility criteria.
Are there specific aids for expatriate entrepreneurs or freelancers in Germany?
​Yes, there are grants for starting a business (Gründungszuschuss), training programs, and specialized advice through institutions such as the Employment Agency (Arbeitsagentur) or the chambers of commerce (IHK).
How can I access social services and housing assistance in Germany?
To access social services and housing assistance, you need to apply to the local social services office (Sozialamt) or the housing benefits office (Wohngeldstelle), providing the necessary documents to assess your eligibility.
Do international students have access to funding options and scholarships to study in Germany?
​Yes, there are DAAD scholarships (German Academic Exchange Service), private foundation scholarships, university-specific grants, and student loans under certain conditions. Check with the relevant institutions for available financial aid.
How can I obtain a student visa?
​In Germany, in order to obtain a student visa, you need to be admitted to an educational institution, prove that you have sufficient financial means to support yourself, and have health insurance coverage.
​What are the conditions for working while studying in Germany?
​While studying, you can work up to 120 full days or 240 half days per year.
Are there daycare centers and childcare facilities for my children, and how can I enroll them?
​Yes, there are Kitas (daycare for children from birth to 6 years), Krippen (daycare for children under 3 years), and Kindergärten (for children aged 3 to 6 years). To enroll your child, you generally need to join a waiting list or contact the desired facility directly to learn about the required procedures.
​What educational options are available for expatriate children, such as international schools, bilingual schools, and public schools?
​Expatriate children can attend international schools offering programs in English or other languages, bilingual schools that combine German with another language, or public schools with German language support classes to facilitate integration.