Pay & Benefits

The German salary rates are generally high. In many senior positions, a company car is part of the package. Bonuses are often tied to performance. Holiday pay and a Christmas bonus are standard.

Tax

Expatriates living in Germany are subject to German taxes, especially if they have German source income. The German tax system is similar to the structures in other western countries.

You pay income taxes throughout the year, usually with an employer deducting tax from each paycheque. Adjustments are then made at the end of the year for possible under or overpayments.

Personal income tax rates in 2008 are progressive, up to 45%. The standard VAT rate is 19% and there is also a reduced rate of 7%. These taxes pay for a comprehensive social welfare system that covers social insurance, health insurance, unemployment insurance, accident insurance and social aid.

Visas

Obtaining a visa is an extremely complex area depending on where you come from and what your skills are. Obtaining a residence permit can also be a time consuming process.