Moving from England to Germany involves many challenges and formalities, especially with the legal differences and administrative changes after Brexit. Germany offers an attractive labour market, a developed social system and a high standard of living. However, in order to take full advantage of these amenities and avoid unpleasant surprises, it is advisable to familiarise yourself with the most important tax, insurance and employment contract issues beforehand. Below is a detailed overview of the most important topics.
1. Legal status after Brexit
For UK citizens (without dual citizenship of an EU country), the formalities have changed somewhat with the UK’s exit from the European Union.
- Visa and residence permit: Currently, in most cases it is necessary to obtain the appropriate visa or residence permit, especially if you plan to work in Germany.
- Transitional periods: Those who lived in Germany before the UK’s exit from the EU could retain some residence rights. However, if you are leaving now, check the current regulations on the German authorities’ websites or consult a lawyer specialising in immigration law.
3. Registration and registration in Germany
The first step upon arrival in Germany is to register at the local registration office.
- Deadlines: You will usually need to do this within 1-2 weeks of moving into your new home.
- Documents: You need a valid passport or identity card and a housing tenancy agreement.
- Registration certificate: this is necessary in many formal situations, e.g. when opening a bank account or registering with the tax authorities.
3. Taxes in Germany
The tax system in Germany differs from the UK, so it is worth understanding the basic rules to avoid trouble. Below are the key points:
Tax office
- Registration with the tax office: Once you have registered, the tax office automatically assigns you a tax identification number. However, it is worth paying attention to ensure that all your details are correct.
- Tax returns: In Germany, many people are obliged to submit a tax return every year. The deadline is usually at the end of July of the following year, but can vary depending on one’s life situation.
Tax classes
In Germany, there are six tax classes that affect advance income tax payments:
- Class I: Singles without children and divorced persons.
- Class II: Single people raising children.
- Classes III, IV, V: Reserved for married couples. Their selection depends on the income of each spouse.
- Class VI: For those with more than one employment.
- It is a good idea to know the rules for selecting a tax class before starting work, as this can significantly affect your net monthly salary.
Church tax
If you declare an affiliation to a Catholic or Protestant Church, an additional church tax is charged – usually 8-9% of the income tax amount. If you do not want to pay it, you must formally withdraw from the Church.
4. Insurance after moving to Germany
Germany is famous for its extensive social insurance system, which covers various areas of life.
Health insurance
- Mandatory: Everyone living in Germany must have health insurance. You can choose between public or private.
- Premiums: In the case of state insurance, the contribution is based on income and is usually around 14-15% of the gross monthly salary (part is paid by the employee, part by the employer).
- Coverage: insurance covers most standard medical services, as well as hospital care and specialist consultations.
Pension insurance
- Compulsory contributions: Full-time employees are subject to compulsory pension insurance – contributions amount to approximately 18.6% of gross salary (split between employer and employee).
- Transfer of entitlements: If you have already worked in another EU country (or in the UK before Brexit as part of the agreements), it is possible to take partial credit for contribution periods – it is worth checking this by contacting your German pension office.
Accident insurance
- Financed by the employer: Accident insurance premiums are paid in full by the employer.
- Protection: Provides cover for medical expenses and a possible pension in the event of an accident at work or occupational disease.
Unemployment insurance
- Contributions: Also shared between employer and employee.
- Benefit: If you lose your job, you may receive unemployment benefits if you meet certain conditions (including an adequate period of contribution payments).
5. Employment contracts in Germany
Types of contract
- Indefinite contract: the most common form, providing greater stability of employment.
- Fixed-term contract: Used for projects or seasonal needs of the employer.
- Mini-Job: A form of employment in which earnings do not exceed 520 euros per month. Insurance premiums are lower, but consequently future pension benefits are also lower.
Key elements of the agreement
- Gross salary: in Germany, the gross annual salary is often stated.
- Working hours: standard 35-40 hours per week, depending on industry and collective agreements.
- Leave: employees are entitled to a minimum of 24 days of leave per year (with a 6-day week) or 20 days with a 5-day week. Often in practice leave is longer, e.g. 26-30 days.
- Notice period: depends on the length of service and the provisions in the contract. It usually ranges from 2 weeks to several months.
Collective agreements and works councils
Many industries have collective agreements that regulate, among other things, minimum wages, wage supplements or overtime rules. Large companies often have a works council that protects the interests of employees and consults on changes to working conditions.
6. Practical tips and the most common challenges after a move
- Language barriers: Although it is possible to work in English in many German companies, German is almost essential when dealing with the authorities. Consider German language courses already before you leave.
- Complexity of the bureaucracy: The German administration can be complex, so be prepared to fill out many forms (often in German).
- High expectations of employers: Germans value accuracy and responsibility. Many positions require proof of professional qualifications, diplomas or additional certificates.
- Cost of living: Especially in large cities such as Berlin, Munich or Hamburg, the cost of renting flats is high. This is worth taking into account when planning your start-up budget.
International removals
Removals from England to Germany is a step that requires solid preparation – both formally and culturally. The biggest challenges are obtaining the right residence documents, understanding the German tax system, choosing the right health insurance and signing a favourable employment contract. The key to success is to be meticulous, diligently check all official requirements and – where possible – learn German.
Remember that every situation is different – so it’s worth consulting a tax advisor, an employment lawyer or enquiring directly with the authorities to make sure you meet all the necessary requirements. This will make your start in Germany considerably easier and more comfortable.
