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Registering as a resident and the Finanzamt

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Posted

I'm a German citizen - have been for three years - and have been a resident of Norway and been paying tax and self-employed there for the past year following a separation. Prior to that I had lived in Germany for 14 years, but as I'd not worked in Germany and had travelled with my work pretty much the whole time, I'd always been advised not to submit a tax return, but just to keep my head down and to keep all my Lohnabrechnungs. So I did that.

Now I'm back living in Germany, have deregistered as a resident of Norway and I'm about to register here at the Einwohnermeldeamt, but I'm wondering if the Finanzamt here is likely to ambush me as result of doing so. ..

Also, I intend to retain my self-employed status in Norway, as the tax I pay also entitles me to social security/healthcare/pension (I don't work in Germany at all, and am only at home here about three months a year)...

Any comments would be really appreciated!

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Posted

There is no connection between the Einwohnermeldeamt and the Finanzamt.

Apart from that, you probably already know that you were practicing tax evasion those 14 years in Germany and that you intend to do so again.

If you have a flat in Germany and are registered you are considered tax-resident, no matter how often you travel, Germany is your base and you have to tax your worldwide income here.

Let's not even open the can of worms of health insurance acceptable to Germany.

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Posted

Unwittingly practicing it Panda Munich, but yes, you're right... which is why I got tax legitimacy in Norway, because nobody I spoke to in Germany could give me decent advice at the time! No defense, I realise. But, no, I don't intend to do so again. I am going to start lodging tax returns here now that I'm living here because like you say, where one lives is owes tax base and that's that.

As for health insurance, I know the Germans have a 'standard' which one is not allowed to go below - and that - for an self-employed person - means paying loads in private health insurance premiums , as I've experienced before. Not looking forward to that, either... :-(

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Posted

You do know, Ensign Red, that when you sign up for health insurance in Germany ( whether public or private), you have to give the Kasse insurance company your tax ID number? Now..that´s opening a can of worms...

Edit: the reason? Health insurance is highly tax deductible nowadays since the introduction of the Citizen´s Relief Act ( my translation..had fantasies that day! :D ) in 2009 ( Bürgerentlastungsggesetz)

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Posted

There have been some changes regarding health insurance in that certain (cheaper) international health insurance is also considered acceptable, see Int'l Health Insurance in Germany, some are legal!

I suggest you contact either Starshollow (Patrick Ott) or john g. (John Gunn) for a free quote, they are our TT resident insurance brokers and honest.

If you go to just any insurance agent you will end up getting sold the most expensive possible insurance, no matter what your needs are, since his commission will then be higher.

Edit: I see that John is already on the case ;)

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Posted

Thanks Panda... :-) I'll definitely be in touch John. The last time I was privately insured here I was with HanseMerkur and it cost a bomb... I do currently possess a European Health Insurance Card though, issued courtesy of being a Norwegian taxpayer. How long can I use that?

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Posted

Officially, Ensign Red: if you´re not a tourist or a student (depends)..until you register or get a tax number...grey area. I still get contacted by people who have been using it for a year or two..but they´ve been lucky.

By the way, you´re now German..are you still something else? :) It has to do with insurability in this or that case. It´s not straightforward getting into the system here these days..lots of stumbling blocks and stupid questions!

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Posted

I have been registered as a resident previously, within the same Kreis, and that's where I held my previous private health insurance policy... and yes, I am German now. :-)

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Posted

It looks like you´d be a candidate for all three possibilities:

public ( as you have been in public insurance in Norway..correct? ). The price will depend on your worldwide income ( including any shares, apartments or whatever in Norway or elsewhere ). Second problem : no mechanism for price stability in old age.

private German: depends on age and level of cover ( and health )..but they now usually want to make sure you´re solvent ( Schufa ) and they would require a medical check up. Price going up January for new contracts starting then for males due to new unisex laws. Yes, there´s a mechanism for price stability in old age but who can guarantee that in 20 years?

legal international insurance: price depends on age, no medical required but be careful if you have any serious pre-existing conditions ( moratorium cover ). Problem here: no mechanism in place for price stability in old age. Price tends to rise yearly.

Basically: all three systems are a problem but please don´t shoot the messenger!

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Posted

I have a lovely partner, Ensign! I´d better make sure I see your message before she does!!! :D ( So I can erase it!!)

Don´t be shocked if I look so serious on the website!! It was HER idea!!! " Time to be cool, John. You´re 60 "!!!

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Posted

John - why does public not have price stability in old age? That was my main reason for choosing public over private, as I thought private would increase in price with increasing frailty i.e. need for healthcare

thanks

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Posted

Hi Clara!

That is a good and a fair question!

In the private system, the price is determined at the beginning on your age, gender ( till now ), your health, your tariff wishes and on the success ( for lack of a better word ) of this tariff ie the insurance companies need enough people in that tariff to make it profitable..I went to a specialist workshop about 3 years ago and a big boss there mentioned 30,000 clients was interesting ( they have their mathematicians..) but that would depend on their age etc.

Basically, price increases in the private system depend on their client base plus, of course, general medical inflation and other inflation and also State intervention ( new laws..that costs money because they have to adjust the software etc etc ).

Having said that, there was a law calling for 10% of the premium in the private system to be reinvested for the client to enable the individual to build up personal capital stock so that premiums in the client´s old age could be equalled to the public system´s ie the same price later in life. I´m tired now but I think it was in 2000 ( can check tomorrow). This is mentioned on any quote for private German insurance and is called " Risikozuschlag " in most cases. This was introduced because of the problem of higher premiums for older people...ask many who are currently retired and pivately insured..they were not protected before. Neither are publicly insured either..pensioners have to pay.

The public system - complicated and bureaucratic that it is - has other issues. It´s a generational contract..younger people paying now are also paying for those in public insurance who are now older or pensioners and who could draw on health services for the next 20, 30, 40 years. There is no capital reinvested for the future.

I have no idea what the future will look like - both systems are under strain..may depend on how many pensioners there will be or how many babies we make in the next 10 or 20 years!

But something has to be done - otherwise the whole system will collapse.

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Posted

Hi Ensign Red,

I also have been in a similar predicament to you. What happened when you opened a bank account? did you get turned down? I am wondering as I am returning to Germany and want to get my situation sorted out at last.

Thanks.

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