Expat Guide

Welcome to Germany!

Welcome to Germany! We are delighted that you have decided to work, study or start a new chapter of your life here. Germany offers many exciting career opportunities, a diverse culture and a welcoming community. But we also know that moving to a new country can be a big challenge.

This guide is designed to help you find your feet in Germany more quickly. It provides you with information on all important topics such as dealing with the authorities, health insurance and finding accommodation.

The Most Important Types of Insurance in Germany

In Germany, there are a number of mandatory types of insurance. These cover basic risks in everyday life. An overview:

Health Insurance for Expats – Mandatory in Germany

Everyone in Germany must have health insurance, regardless of whether they are working, studying or retired. There are two types of health insurance:

Long-term Care Insurance (Pflegeversicherung)

If you have statutory health insurance, you are automatically covered by statutory long-term care insurance. This insurance pays out if you become in need of care, for example home care or a stay in a nursing home. If you have private health insurance, you must also take out private long-term care insurance.

Pension Insurance (Rentenversicherung)

All employees pay into the statutory pension insurance scheme. Payments are made automatically: your employer deducts your contribution from your salary and transfers it to the pension insurance scheme together with their contribution. Pension insurance ensures you a monthly pension when you retire.

• You are also entitled to payments if your earning capacity is reduced, and your surviving dependents are also entitled to payments.
• Certain groups of employees, such as civil servants, are exempt from paying into the statutory pension insurance scheme.
• Certain groups of self-employed people, such as tradesmen and women, teachers, midwives and carers, must also pay into the statutory pension insurance scheme.
• Other self-employed people have the option of taking out voluntary pension insurance. However, they must transfer their contributions to the pension insurance scheme themselves.
• Members of certain professional groups, such as doctors, can pay into separate pension schemes instead of the statutory pension insurance scheme.

Unemployment Insurance (Arbeitslosenversicherung)

All employees pay into the statutory unemployment insurance scheme. These payments are also made automatically by your employer. If you become unemployed, you receive income support and help when looking for a job. Self-employed people can take out voluntary unemployment insurance.

Accident Insurance (Unfallversicherung)

When it comes to accident insurance, there is a difference between statutory and private accident insurance. Under statutory accident insurance, you are automatically insured against accidents by your employer.

The insurance pays out if you have an accident at work or on your way to work, or if you suffer from a job-related illness. The benefits provided by statutory accident insurance vary greatly depending on the type of accident and what you are entitled to, but in general they include things like rehabilitation, back-to-work benefits or cash benefits (e.g. insured person's pension).

Motor Vehicle Liability Insurance (Kfz-Haftpflichtversicherung)

Anyone who registers a motor vehicle in Germany must take out liability insurance for that vehicle. If you injure someone or damage someone's property while driving, the damage caused is usually paid for through car insurance. For damage to your own vehicle, you can take out additional "comprehensive cover" in addition to the statutory liability insurance which covers damage caused to others.

Professional Indemnity Insurance (Berufshaftpflichtversicherung)

Professional groups such as doctors, lawyers and architects must take out professional indemnity insurance. As a rule, this pays out if they make mistakes in their profession that lead to claims for damages.

Useful, but Not Mandatory Types of Insurance

In addition to the types of insurance required by law, there are some voluntary insurance policies that can be useful. The following list is not exhaustive, but forms an important basis for potentially useful additional cover.

Personal Liability Insurance (Private Haftpflichtversicherung)

Personal liability insurance is an essential form of insurance that protects you against major losses for relatively low premiums. As a rule, it protects you if you accidentally or negligently cause damage to other people. Personal liability insurance pays compensation for justified claims for damages in the areas of property damage, personal injury and financial loss and, depending on your policy, may also help you with the legal costs for defending against unjustified claims for damages. Without this insurance, you would have to bear the resulting costs yourself, which can quickly become very expensive. This type of insurance is often inexpensive (usually less than 100 euros per year) and offers comprehensive cover.

Pet Insurance (Tierversicherung)

In some federal states, dog owners are obliged to take out pet insurance, while in other federal states this obligation only applies if you have a dog breed that is categorised as "dangerous". Overall, pet insurance is a sensible way to protect yourself against the high costs that can arise from veterinary care. You can choose from a wide range of policies.

Household Contents Insurance (Hausratversicherung)

By taking out household contents insurance, you can insure your personal possessions such as furniture, clothing and electrical appliances. This type of insurance typically covers damage caused by various hazards, in particular fire, burglary (theft), mains water, storm and hail. You can also cover additional risks such as bicycle theft under household contents insurance.

Buildings Insurance (Gebäudeversicherung)

If you own a property, you would be well advised to take out buildings insurance. This covers damage to the building itself, such as damage caused by fire, storm, hail or mains water. Buildings insurance is often required by banks when you take out a mortgage.

Financial Basics in Germany

Understanding the German financial system is crucial for managing your finances effectively. Here are the key aspects:

Banking in Germany

Opening a bank account is one of the first things you should do when arriving in Germany. You'll need it for receiving your salary, paying bills, and daily transactions.

• Most banks offer accounts in German and English
• You'll need your passport, proof of address (Anmeldung), and sometimes proof of employment
• Many banks offer free basic accounts (Girokonto) for students and employees
• Online banking is widely used and secure in Germany

Tax System

Germany has a progressive tax system. As an employee, taxes are automatically deducted from your salary.

• You'll receive a tax identification number (Steuer-ID) automatically when you register your address
• Tax classes (Steuerklassen) determine how much tax is deducted - important for married couples
• You can file a tax return (Steuererklärung) to potentially get money back
• Many expenses related to work, moving, or education can be deducted

Social Security Contributions

As an employee, you and your employer both contribute to social security, which includes health insurance, pension insurance, unemployment insurance, and long-term care insurance. These contributions are automatically deducted from your gross salary.

Registration and Red Tape in Germany

When you arrive in Germany, there are several important administrative steps you must complete:

German Society and Culture

Understanding German culture and social norms will help you integrate more smoothly:

Punctuality

Punctuality is highly valued in Germany. Being on time (or even a few minutes early) is expected for appointments, meetings, and social gatherings. Being late is considered disrespectful.

Direct Communication

Germans tend to communicate directly and honestly. This is not meant to be rude, but rather efficient and clear. Small talk is less common than in some cultures, and conversations often get straight to the point.

Privacy and Personal Space

Germans value privacy and personal space. It's common to keep a certain distance in public spaces, and people may seem reserved at first. Building relationships takes time but can be very rewarding.

Order and Structure

Orderliness and structure are important in German culture. Rules and regulations are generally followed, and there's a system for almost everything. This helps create predictability and efficiency.

Work-Life Balance

While Germans work hard, they also value their free time and work-life balance. Weekends and evenings are typically reserved for family, hobbies, and relaxation. Overtime is generally compensated.

Recycling and Environment

Environmental consciousness is strong in Germany. Recycling is taken seriously, with separate bins for different types of waste. Many Germans are committed to sustainable living and environmental protection.

Things to Know About Everyday Life in Germany

Working in Germany

Germany offers excellent career opportunities for skilled professionals. Here are key points about working in Germany:

Studying in Germany

Germany is a popular destination for international students. Here's what you need to know:

Tips for Finding Accommodation

Finding accommodation in Germany, especially in major cities, can be challenging. Here are important points to consider:

Health Matters and Emergencies – Important Information for Expats

Integration and Networking for Expats in Germany

Notice of Departure from Germany (Abmeldung)

If you move abroad permanently or give up your accommodation in Germany, you must deregister (Abmeldung).

Checklist for Expats

Use this checklist to ensure you complete all necessary steps when moving to Germany:

Complimentary Financial Consultation in Germany

In collaboration with certified financial consultants

Building a secure life in Germany starts with making the right financial decisions. The German financial and insurance system is highly structured but can be difficult for international residents to understand.

We provide free personal financial consultations to support students, professionals, and families who are already living in Germany. Your consultation is conducted in collaboration with certified financial consultants licensed in Germany.

Our advisors provide clear and transparent guidance on:

Who Can Apply

This consultation is designed for:

• International students living in Germany
• Working professionals and Blue Card holders
• Families under family reunion residence
• Ausbildung trainees
• Permanent residence applicants