Germany

Income tax (Einkommensteuer) is progressive: 0% up to €12,084, 14-42% on €12,084-€68,430, 42% above €68,430, 45% above €277,826. Solidarity Surcharge (5.5% of income tax) applies above €18,130 income tax — adds ~2.3pp at top brackets. Church Tax (8-9% of income tax) applies if registered religious. Social Security wedge: ~20% employee + ~20% employer, capped at €87,600 income (West) / €85,200 (East). Capital gains: 25% flat (Abgeltungsteuer) + solidarity. VAT (Mehrwertsteuer): 19% standard, 7% reduced. Trade Tax (Gewerbesteuer) on businesses ranges 7-17% depending on municipality.

• Software developer$78,000
• Data scientist$75,000
• Mechanical engineer$73,000
• Marketing manager$80,000

Statistisches Bundesamt median gross wages. Tech compensation in Berlin / Munich reaches 1.5-2x national median — but RSU equity is rare; cash-heavy comp is normal. Manufacturing engineering (BMW, Siemens, Bosch) pays competitively but bonuses are tied to industry-wide collective agreements (Tarifverträge).

Munich is Germany's most expensive city — 1BR central €1,400-2,200/mo. Berlin used to be cheap but rents rose 30%+ post-2020 (Mietspiegel ceilings notwithstanding); 1BR Berlin Mitte €1,200-1,800/mo. Frankfurt expensive due to financial-services premium. Smaller cities (Leipzig, Dresden, Bremen) offer 40-50% cheaper rent at high quality of life.

• Freelance / Self-Employed visa

  Section 21(5) AufenthG. For 'free professions' — IT, design, journalism, language teaching. Berlin Künstlervisum.

• EU Blue Card

  For specialty workers earning ≥ €48,300 (€43,759.80 shortage occupations). Fastest path to PR (21 months with B1 German).

• Job Seeker visa

  6-month visa for university graduates to look for skilled work in Germany.

• Skilled Workers visa

  Standard employment visa for non-Blue-Card-eligible roles. Requires job offer + recognized qualifications.

Citizenship eligibility: minimum 5 years of legal residence (varies by pathway).

Niederlassungserlaubnis (permanent residence) typically requires 5 years (3 with B1 German). Citizenship requires 5 years residence (reduced from 8 by the 2024 reform), B1 German, financial self-sufficiency. Dual citizenship now allowed since 2024 — major change from prior 'must give up' rule.

GmbH (Gesellschaft mit beschränkter Haftung) is the standard private limited company. €25,000 minimum capital (€12,500 paid-up at incorporation). The lighter UG (haftungsbeschränkt) variant requires only €1 minimum but mandatorily reinvests 25% of profits until reaching €25K capital.

• GmbH (Private Limited Company)

  The German equivalent of a UK Ltd. ~€500-2,000 setup including notary; €25K minimum share capital. Required for serious German operating businesses.

• UG (Mini-GmbH)

  Cheap entry path: €1 minimum capital. Must reserve 25% of profits until €25K — converts to GmbH automatically once threshold reached.

Banking

N26 is the famous Berlin neobank — opens accounts via app for any EU resident. DKB and Comdirect are popular online incumbents. Traditional banks (Deutsche Bank, Commerzbank) require Anmeldung (city registration) + tax ID before opening — typical 4-8 week process for new arrivals. Cash culture remains strong: ~30% of POS payments still in cash (vs. <10% UK / SG).