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Expats Beware: Oddest Taxes in Germany, Infographic

Taxes are complicated, especially when you examine them in geographical, cultural, political, religious and social contexts. Fortunly notes that there is always logic behind each country’s tax policies, no matter how irrational they might seem initially.

For instance, Brunei maintains a zero-taxation system, for it is oil-rich enough not to rely on its residents’ incomes to fund government spending.

Eritrea, on the other hand, observes citizenship-based taxation to generate as much revenue as possible. This way, the African state can mandate that all of its people must contribute to the nation’s coffers whatever part of the world they live in.

When moving to a new country, understanding its tax policies can be an effective way to comprehend its society. Sometimes, taxes speak volumes about what a jurisdiction perceives as negative but is willing to tolerate for the right price.

More often than not, a territory has its own share of strange taxes that raise a lot of foreign (and even local) eyebrows. Germany is a shining example.

Dog Ownership

In Germany, having pets is not illegal. However, residents must pay the government if they are to own dogs. Canine family members must be licensed, so they can be taxed accordingly. Pet owners are charged per animal; the more dogs you have, the higher tax you need to pay.

Dog taxes used to be more common in the past. Most countries abolished them in the 20th century, though. Germany is unlikely to scrap its old-fashioned household-dog tax policy any time soon, for it is a multi-million-euro source of government revenue.

Prostitution

Tax officials treat sex workers in Germany like ordinary professionals. However, some jurisdictions had to be more creative to collect fees from freelancers in the prostitution industry.

A good case in point is Bonn’s move to turn red-light districts into toll roads. Each prostitute must pay €6 to make a living in a metered area.

Renewable Energy Consumption

Most countries want to make clean energy as affordable as possible to set the stage for mass adoption. Germany, however, is capitalizing on its position as a global leader in renewable energy generation to raise billions of funds earmarked for green investments.

German consumers generally consider paying the extra cost of clean electricity as a moral obligation to help conserve the environment. Thanks to the collective effort of its taxpayers, the country was able to earn more than €1.8 billion in renewable energy export revenues.

Possession (or Non-Possession) of a Radio and/or a Television

Since the ‘70s, the overhead of state-run media networks in Germany used to get financed by any resident who owns a radio or a television in the country.

The rules, however, were changed in 2013. Now, the authorities levy the tax on a “per household” basis. The amendment instigated civil unrest, but the government did not bulge and even sent some protesters to prison.

The Bottom Line

Some taxes in Germany may be hard to swallow for expats, but it is imperative to know which ones you likely have to pay, how to legally avoid them and what the possible implications are. Seek expert advice to find out whether your religion, lifestyle and others may increase your tax liability and settle in Berlin, Munich or anywhere in the country with little stress.

You can also use an online tax tool – SteuerGo – which will navigate you through the filing in process of your tax declaration and will help to secure the highest refund possible (up to 1.100€).

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Get a Blue Card in Germany

We all know how difficult it is to find a good job or get a visa in a foreign country. Especially when the country is as exciting and in demand as Germany. We’re always looking for easy solutions to these problems – so we’ve decided to outline all the steps to obtain a blue card in Germany.

 

For those of you who don’t know, a blue card is very similar to the green card in America – it grants foreigners from outside the EU permission to live and work in the country. If you are a skilled and qualified worker seeking employment from any of these countries, you will need either a visa or a blue card before accepting employment!

 

1. Australia
2. Israel
3. Japan
4. Canada
5. South Korea
6. New Zealand
7. The United States of America

Since the allotted time to stay in the country for members of these countries is approximately 3 months, it may be hard to find employment during this time. Luckily, you can still apply for a blue card in Germany. However, it is still recommended to apply for a visa while you are still in your home country since the time it takes to receive an approved visa is uncertain. It is also recommended to find employment before you travel to Germany. This way, your employer can assist you in getting an employment visa or a blue card.

Necessary steps to earn your Blue Card:

• A filled out application form. This can be filled out by either you or your employer. In order to obtain the application, you must first ensure you have all the required documents. 

• Gather all the correct documents. The foreigner’s office needs to see many documents before granting you a blue card. This includes a university degree, proof of employment, recommendation letters, a valid Passport/travel documentation, proof of application fee payment, and more. It is recommended to begin this process of collecting documents 3-6 months before you arrive in Germany. 

• Go to your local foreigners’ office and hand in the paperwork and fill out the application. This step is perhaps the most tedious of them all. It is recommended to arrive early in the morning right when the office opens. If not, you will have to stand in line or come back another day. It is also possible to make an appointment in person, but you will have to do this several months in advance to ensure you will be seen.

• Wait for approval. After handing in the application, you must wait for a maximum of 3 months/90 days for your request to be approved. You also have the right to appeal the decision within three weeks of the decision’s arrival. You can also hire an attorney to speak on your behalf.

Additional things your will need

It is important to know you will also need:

A German Tax number since all employees are required to pay taxes.

You are not required to pay taxes if you work at a company that pays under 450Euros a month (mini-job).

Depending on marital status, taxpayers are divided into different tax groups:

• Married
• Single
• Divorced
• Children or not, etc.

Tax payments are done according to the group you are part of. To obtain your German tax number, you will need to go to the Burgeramt and ask for a form. It is very similar to the Anmeldung process!

You will also need to acquire proper Health Insurance (Expat, Public, or Private). This is not quite as difficult as it sounds! Many companies offer health insurance for their employees. If your employer does not, there are many international health insurance companies that offer decent coverage for a reasonably low monthly rate. You can find more information about Germany’s different health insurance options here.

 

Getting a blue card isn’t quite as difficult as it seems. As long as you carefully follow the steps and ensure you have all the correct documentation, you should have your blue card in no time!

If you need additional help, check out these other helpful links:

https://www.make-it-in-germany.com/en/visa/kinds-of-visa/eu-blue-card

Best of luck! 8)

Disclaimer: Even if we try to be the most accurate and precise with the information and sources that we provide, we advise you to contact a professional on the topic.

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Expats Infographic

How Expats meet people is an infographic we create, based on the InterNations Expat Survey 2015.

Going out there and meeting new people is a thing what a lot of expats can do but not everybody feels comfortable with, but how important it actually is. One of the things that may make you feel more at home is by getting to know more people, international or locals. Doing networking enables you in so many ways, professionally, personally and empower you to share your history with others.

Do you have other ways to meet people? What is your number 1 option? Share with us!

If you’re interested in making new connections and friends, join us in our upcoming events. Register at our Website and be part of this growing International Network.

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[via Feedbacq Blog : “Do You Have Expat DNA?”]

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(Photo Credit: Venture Village EU)

Venture Village conducted a survey amongst 150 participants within the startup scene in Berlin. The infographic gives further details of the sample size of the survey. Most participants were under the age of 35, and it was an almost even split between females and males.

Although many participants claimed to work more than 40 hours per week, most startup employees are generally happy. The startup environment is attractive. Berlin is known for being an international city, so most startups are diverse. There is also an entrepreneurial drive that motivates employees to take on responsibility. Although the payments are varied amongst startup employees, employees are inspired to go the extra mile because they are invested in their startup’s mission.

For more information, check out http://www.venturevillage.eu

Tell us about your experiences in a Berlin startup!

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