Job Discussion Forums

[sharter]

I teach for an oil company in Libya and worked in a merchant bank before I changed careers and got into ELT. As I have a son in Poland only 2.5 hours from Berlin, I've been thinking about making a move to Germany. It makes sense for me and I like the country and people. I have 15 years experience and am qualified. However, I know nothing about German taxation and many of the job ads don't specify if they pay gross or net salaries. How much tax would you pay on 3000 Euros a month? I make more than that net per month at the moment and have free BUPA, accommodation and food but I wouldn't mind taking a pay cut for some quality of life. As a teacher, I'd be very appropriate for banking / petrochemical companies, so I'm sure that finding a position will not be a problem. In fact, I'm open to any offers and need only give 28 days' notice. The salaries I've seen look suffice (not great) if they are net. Any opinions / info / offers would be much appreciated. Thank you in advance.

[sharter]

Thanks for all the help. Someone must know surely!

[Hod]

German tax is humungously complicated. Estimates can be calculated using German Tax Calculators (or Steuer Rechner) online, e.g.

http://www.aktuell-verein.de/brutto-netto-rechner.php

Using the above link, I�ll assume:

- You are Tax Class 1 (single, no kids in Germany).
- You don�t want to pay Church Tax or Social Security.
- You will pay your own health insurance.

A gross income of �3000 equates to a net of about �2400.

There is also some sort of pension payment freelance teachers are supposed to pay. Maybe a freelance teacher can advise.

German health insurance is nearly as complex as tax. I pay �250 a month.

[MrTeacherTraining]

[sharter]

That's more like it. Many thanks. Having a son in a big city in western Poland, which is now bloody expensive, I couldn't afford to work in Germany by the looks of it. Poznan house prices are now higher than those per square metre in Berlin. Nuts. Berlin's a great place, so I'll have to look into this some more. Thanks folks.

[scot47]

Berlin has certain attractions but what puts me off is the fact that it has become the "Pink Capital" of Europe. I preferred the days when my part I was the "Hauptsadt der DDR"

[Hod]

MrTeacherTraining wrote a good list of deductions. I�d like to add some points.

Income tax (Einkommensteuer)
No getting away from this, although most Germans, whether skinflint freelance or wealthy employed, will complete an annual tax return to claw some taxes back.

Social Insurance (Pflegeversicherung)
Employees have no choice but to pay. I work freelance and, without breaking any laws, choose not to pay this. The downside is I wouldn�t get full unemployment benefit. Oh dear.

State Pension (Rentenversicherung)
I definitely choose not to pay this. I see too many German pensioners driving Mercs. They know what I know � in twenty year�s time, the money will have run out.

Serious point for a number of professions including freelance teachers, who I think must pay this. Don�t quote me, but I believe it�s 19.5% of your gross salary, i.e. a lot. I�d recommend doing some research and then taking the risk and not paying. I just don�t believe anyone could afford it.

Solidarity Tax (to pay for German Reunification)
Have to pay this one too, I�m afraid. Like anyone who�s spent a few hours in an old DDR backwater, I look at the 20% unemployment figures and wonder just where does the money go?

Church Tax (Kirchensteuer - if you declare a religion - to avoid this, you would have to officially leave your church: in triplicate)
Simplest one of the lot. Just don�t tick the Religion box when you register.

Health Insurance (Krankenversicherung - different from Social Insurance)
Whereas the most complicated comes last. In 2009, the rules changed and everyone had to have health insurance from a Germany-approved company. From first-hand experience, I�ve seen this rule enforced, with non-EU citizens rejected when making visa applications at the Foreigners� Department (Auslaenderbehoerde).

German insurance isn�t cheap. But if you�re EU, you�ll never need set foot in the Auslaenderbehoerde. In fact, as an EU person, you could live and work in Germany with no insurance at all, but it�s not the wisest option (neither is relying on an E111 / EHIC card). Instead, go for a yearly policy with BUPA or A La Carte. By all means, go for a German insurer, but the premiums will start at 200 a month. Either way, get expert advice.

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Sharter, you probably know about the Berlin � Warsaw train service, stopping at Poznan amongst other places.

[Hod]