Banking, Money and Taxes in Germany
Expats can open a bank account in Germany and will find German banks as sophisticated and modern as there is in the world. Online banking is and easy and a common means of making transactions and managing accounts. Expats opening an account should provide their residence card, proof of address within Germany and a passport.The major banks are Westdeutsche Landesbank, Bayerische Vereinsbank, Dresdner bank, PostBank, Commerzbank and DeutscheBank. Many international banks have branches in Germany and continuing an overseas account is sometimes the best option.
Expats must pay taxes on income derived from German sources. Higher incomes pay much more tax than lower salaries. In general taxes are high and up to 45 percent of income for high tax brackets. This is often automatically deducted from employees pay checks by employers.
Expat must obtain a tax card when they begin employment in Germany. Self employed persons must complete a tax return at the end of each tax year. Germany recognises double taxation treaties with most countries of expat origins.
