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Moving from U.S. military into the German economy

Taxes, driver's license, and other advice

Toytown Germany > Discussion forum > Germany-wide > Finance
nutwpinut
Going into German economy.

I am currently TESA here in Germany.

I am curious about certain hidden fees and taxes I would have to incur and advice on what I will have to do changing over to the German economy on a work visa.

Do I have to pay custom taxes on my car when I change over (BMW X3 I have owned since 2004 in USA, brought over here on TESA 9 months ago)?
I have a USAEUR Driver's Licence, can that be exchanged for a German Driver's license for a small fee?

Anything other information is appreciated.
Hutcho
Your post is very confusing.. I would consider revising what you have said.. I for one have no idea what you're talking about.. Going into German economy makes no sense, and the rest is not much better..
jeremy
Go easy on him.

I would guess the chap is American military and a spell on www.acronymfinder.com would identify the acronym. American military are so infuriatingly fond of acronyms such as TDY (temporary duty) ASG and BSB.

"Going on the economy" is US military slang for working off the base and mixing into German life more through paying teaxes etc.

btw its USAREUR not USAEUR. US Army Europe.
boomtown_rat
QUOTE (jeremy @ Jun 1 2007, 2:58 pm) *
acronyms such as TDY

just to be picky I think an acronym has to be able to be said as a single word e.g. NATO, NASA, TESA. I suspect TESA is something to do with teaching

I think with US driving licences it depends on what state it was issued in - some can be exchanged for German licences but otherwise you have to take a German driving test. Actually I just noticed you said it was a special type so actually I don't know to be honest

QUOTE (jeremy @ Jun 1 2007, 2:58 pm) *
btw its USAREUR not USAEUR. US Army Europe

USAEUR is also valid I think
leky
Maybe this will help.

. People who retire, are discharged or terminated from military or civilian service, or are barred theaterwide lose their eligibility to have a U.S. Forces certificate of license at 0001 hours the day after the retirement, discharge, termination, or the imposition of the theaterwide bar.

b. Family members lose eligibility on termination of their sponsor’s eligibility or by divorce or loss of family-member status.

c. People in subparagraphs a and b above (except those who are under a theaterwide bar) may apply for a translation of their U.S. Forces certificate of license to obtain a German drivers license (except for class 2 vehicles). The translation should be requested 60 days before loss of eligibility by sending the following to the USAREUR RMV:
    (1) Copy of German residence permit (Aufenthaltsgenehmigung) or German police registration (Polizeiliche Anmeldung). Applicants who are German citizens must provide a copy of their German passport or identification card (Personalausweis).

    (2) A document that shows loss of eligibility (for example, statement of retirement, expiration of term of service (ETS) orders, statement of termination, divorce documents).

    (3) U.S. Forces certificate of license number.

    (4) Prescribed administrative fee (by check, money order, or credit card).
I don't know if you fall in to any of these categories, but I'm sure the local Vehicle registration office can answer your questions, uoi may also be able to exchange your US license (depending on the State) for a German one.
Elfenstar
QUOTE (Hutcho @ Jun 1 2007, 2:50 pm) *
Your post is very confusing.. I would consider revising what you have said.. I for one have no idea what you're talking about..

good one. every time i hear "do you work on the economy" i just cross my eyes and want to scream: hello! speak English!

QUOTE (jeremy @ Jun 1 2007, 2:58 pm) *
American military are so infuriatingly fond of acronyms ...

they're not the only ones. where i work, i still have trouble figuring them out. and it's an important company for the German economy. laugh.gif
Darkknight
TESA = Military Civ. Contractor (Technical Expert Status) means they have an ID card and full access to the Military system
just as if they were Active Duty Military.

@nutwpinut
You bought your car in the US in 2004? You had it shipped to DE under your TESA status 9 Months ago?
If so the the German's shouldn't hit you for an import tax, but you will get hit for a yearly car tax. You will
also have to pay for a German License plates and Insurance, TUV Inspection, Etc.

Your USAEUR Driver's Licence, can be exchanged for a German Driver's license, for around 50-80 Eur.
Whatever you do don't let the Germans keep it!!! It's not a normal US/Stateside license, so they have no need to keep it.
Tell'em its a US Govt. License, and must be given back to the US Govt. etc. I'm sure you can come up with something..
Don't show or tell them you have a current/valid US license either. They may give you some static cause the USAEUR license
isn't a normal US one, so you might have to do some sly talking to get them to give u a DE license based on it. They may tell you
you need a translation of it from ADAC. Tell then ADAC won't provide a translation, again cause it's not a standard US license.

I did all this many moons ago, and got all the USAEUR classes I had added to my DE license, including stuff they won't usually
xfer like big rig trucks, med. trucks and Busses. Play your cards right and you'll be set.
Elfenstar
hey DK, did you stay in Germany after getting out or did you go home first, then come back here?

I'm just wondering why people do this. Can't you make more money in the U.S.? And knowing you no longer have some US privileges, etc. that might be hard knowing you cannot get back on that base w/out an invite.
jeremy
was nicked by the military police twice on the base. One for running a red "starp" sign and the other time I was driving 45 in front of the general's house. It was 30 there I think.

He took a look at my British complex looking driving license issued 1984 and must have thought "Oh Shit". I got just a caution. Never been so frightened in me life. Those MPs are charmers arent they.
boomtown_rat
QUOTE (Elfenstar @ Jun 1 2007, 4:16 pm) *
Can't you make more money in the U.S.?

money isn't everything though
Darkknight
@Elf

They gave me the option to go back to the US, but I didn't take it. It's called an In place Seperation. The option for them to send
you home at Govt. cost is good for up to 6 months once you get out. So if you get out and stay overseas, then find it was the wrong
thing to do, you have a 6 month windows for a garenteed ride back to the USA. (You also keep your ID card and base access for 6mo)

More money in the US? Depends on what job you would have once you got out. In my case no, more $ to be made in Europe
than in the US. I maynot have an ID card and unrestriced access to military bases, but I still have connections, as do almost
everybody who gets out..
jeremy
Hey DK dont most mil personnel have to do a year back in the States after five here?

I know a chap who is now on his ninth year here (Elf knows him too) and they've kept him here cos he is good at his job. But I undretand most have to rotate back after their five year stint.
Seattle2
DK seemed to hit your drivers license question. And agreed, keep your US license. They did give ours back when we changed over, and just gave us a sticker saying we have the right to have 2 licenses. Apparently the Deutsch police dont like the idea of you having 2 licenses if they see them.

Also, not exactly sure how this works, but we still have our car registered in Washington. I believe if it's currently registered, you can wait on making the switch for up to a year - sorry I'm not more exact on this, but my 'better half' does all this dirty work. Although, you said you've already had yours here 9 mo... you might actually want to start this soon, no telling how long the process is going to take.

And as for taxes, they have similar ones to the states, although if you claim a religion they'll tax you for that, and they require retirement insurance payments (which I've heard you should be able to get back when you leave).

Really make your benefits person go through your new insurance options, as they can be a bit tricky. And since you said you are changing to a work visa, I'm assuming you have an offer. I highly recommend making sure any perks you have or basic job needs are clearly written in the contract. Its like your job bible. If you have professional associations you expect your employer to pay for, or you need to take a certain number of professional classes for a professional status renewal and they should pay for the class registration fee, etc - get those all written in your contract.

Good luck with the switch!
Nicole
Just an interested question, why are you leaving a TESA position and the benefits it entails for a German job and 40% taxes?? Surely you have the best of both worlds staying in the US sytem but living in Germany? The only advantage I can see is if you want to buy property here but you are hardly going to make a killing in the German property market.
I've never heard of anyone changing a USAREUR license for a German one, I guess if you have the gift of the gab it can be done but I'd look into seeing if you can exchange your US one for the German one under the reciprocal agreement between some states and Germany. Bear in mind if you do give up your US license you cannot get another one without a US address and proof of residence in the State you are applying. We had some trouble with that a while back.

Anyhow not knocking your decision just wondering why!

QUOTE (jeremy @ Jun 1 2007, 5:13 pm) *
Hey DK dont most mil personnel have to do a year back in the States after five here?

GS (government service positions are usually for five years although there are plenty of people that manage to stay longer. Contractors have to reapply for TESA every few years but you can stay for up to 20yrs before you have to go back to the US for a year. After that you can reapply again.
Some military personnel stay in Europe for the length of their careers. Not as easy to do now as it used to be. My husband moved between the UK and Germany for 22 years, never worked a day in the US except for basic training.
Darkknight
Nope..

It has nothing to do with location, its all about the contract/years.
With the Airforce you sign-up for 4years at a go. If you are assigned overseas your tour is usually 2 years. Some locations
are short term overseas locations (1yr). Only with a 2yr tour can you bring your family (if your married). Most people do
the 2yrs overseas then go on to their next assignment. Others like where they are and apply for an IPCOT
(In Place Consecutive Overseas Tour ) which is just military talk for extending your current tour at its current location.

Usually at the end of the IPCOT (2x2 year assignments)your due for a re-enlistment for another 4years. Some services also offer
6 and 8 years. You can apply for another IPCOT or take a new change of station. How many IPCOT's you get depends on your
commander.

What your thinking about are GS jobs. TESA people are not GS. They don't work directly for the Govt. They work for
contracters. GS level jobs have overseas time restrictions that were put into place back in the late 90's as a way to force
people to move around instead of staying Overseas for 10+ years. This way all GS people have a chance to have an OS tour.
Darkknight
As for all the taxes, car reg. changing, etc. I'd go over and talk to the Legal office. They will be up to date on all the current
procedures, and can help with all the paperwork to make it happen.

I'd have to agree with the above posters. Why would you want to giv-up all the TESA bene's, and move to a German contract?
You'd be nuts to do so, unless you will be loosing yor TESA status in which cases that sux, but that desicion can be appealed
between your company and the Germans.

@Nicole
You can exchange a USAREUR license to a german one. The prob. is 98% of the people that work at the German Fahrscheinstelle
have never seen or delt with a US Military license conversion, only normal US licenses. If you are looking to convert any
US license to a German Equiv. and you have a USAREUR license then use that. Depending on which state issued your civ.
license you may need to take a German written or practical test or both. With the USAREUR license you don't have to do anything.
This comes in very handy if your license is from one of the "Bad states"...

QUOTE (Nicole @ Jun 1 2007, 5:17 pm) *
you do give up your US license you cannot get another one without a US address and proof of residence in the State you are applying. We had some trouble with that a while back.

This is why you can get a Duplicate license for $10-20 when your back in the US.
The Beaver
I'm currently a TESA employee. I can stay as long as I want as long as I keep my TESA status in check. Things that can compromise this are me buying property in Germany, getting married to a German national or starting a business in Germany.

GS employees can stay up to 5 years and then have to go back to the states for a year. However, they can get an extension. A good friend of mine is currently on his 2nd extension (7 years here now) and will likely get it extended indefinitely. He also has a German wife but is instrumental to the program he runs so they will not let him go.

I know many, many people working for the US government as 'national locals' meaning they don't get any base privileges, pay German taxes, abide by German laws, etc... Many times, they make out better than some of us TESA folks. Contracts in Europe are being so underbid now that contractors aren't making jack shit. Contracting has gotten so cutthroat and it truly epitomizes the American capitalistic attitude about work. If you're GS, you have it made - money-wise and benefit-wise at least. Contractors get treated like shit, work long hours and get crappy benefits. It's only gotten worse through the years. It's all about supply and demand. Dangle the European carrot, get 'em over here and then cut the benes and salary while they are stuck 'on contract.' (nah, I'm not bitter...)

A good friend of mine just went from GS to 'working on the economy' and he is doing just fine. He had TONS of red tape to go through, but he's making out better than before. I can get the details from him if anyone is interested.

And to the comment about 'making more money in the US': Ummm, in what part? It's a big, big country and probably more variable than Europe. You also have to add in what you value as quality of life (as alluded to by another poster).

Signed,

"I just want to be a ski instructor because Germans and Austrians ski funny and aren't all that imaginative on the slopes" (sure they win races, but they look like they are in more pain than anything... Smile and have fun you bastages!)
nutwpinut
Sorry for not being more detailed about my situation. Thank you for those who answered my question.

My situation:
I work for a company that contracts for the US military under TESA (Technical Expert Status). TESA gives me the same privileages as a US soldier here in Germany. I don't pay German taxes, I don't have to be in the German system, and I get US military base access to all the goodies of shopping.

Why in the world would I want to leave TESA? I don't, I wish I didn't have to.
Being a contractor I am under the whims of the military. The military has decided to move me back to the USA. I don't want to go back. I like living in Germany and want to stay for several more years. I do not have much time and I found a good job to work on the econonomy (integrate into the German system by getting a work visa, paying taxes, etc..) like every other legal alien. This means moving my car and driver's license into the German system instead of the US Military system.

I like living in Germany. I like traveling in Europe. I like the quality of life and standard of living in Heidelberg. I do not live on a US base and like living in the city and want to continue doing so. I found a way and I am happy for it biggrin.gif

Again thanks for all your answers and advice. Now I can finally concentrate on German Language Classes now that I know I am safe here for at least 2 years.
Darkknight
Why not try to find another TESA job.. Say in Stuttgart, K-Town, or Hanau. Still lots of Military
in those areas, and contracts/jobs that support them.

You do know that if you go to the German side, you will find it next to impossible to get another TESA job in Germany, ever...
It will also be a spot on your Mil./contract history, and may preclude you from getting a security clerance should you try for
another Govt./TESA job.

If I were you, I'd start looking for another TESA job so you can stay. Going to the DE side of things will cause you more
problems than it's worth. If after searching you still don't find anything, then consider going back to the US and moving
to the DE side an absolute final/nothing left to do.. option..

I know too many people that were in the same situation as you, and they made bad choices (Move to DE side) and it
screwed up their carreers bigtime. I'm not saying this will happen to you, but it could and you have to be ready for it.
nutwpinut
I will still be working for a US company contracting for the US Military, but no longer TESA. It is an American Company with a German Inernational Office. I believe it allows them to bid lower on contracts and win by not having to go through TESA and get US Military logistic support (military has less to pay they are happier).

I have been looking for TESA type jobs in Europe, but there are very few for a Computer Programmer without a Top Secret Clearance. I have applied to them and have had some success, but the pay was low or the contract was expiring soon. I don't want to have to go through another contract negotiation. As mentioned in a post before, the competition is fierce and since they know about the tax excemptions they low ball the pay and tell you look at the total take home package.

As for pay, it is not as good as TESA, but is better than in the USA. They do "hypo tax". I pay taxes as if I am working in the USA and they make the difference and pay the German tax. Example: my salary is 100k. They take out 25k for federal taxes. German is about 50%. They take my 25k add 25k of their own and pay the German taxes. I'm not doing any worse than if I worked in the USA, in fact better because I don't pay state taxes (I am a Texan resident, but my current job is moving to a tax state) .

I don't have to move and deal with the hassle of an immobilien. This new job location is even better than my current job's location. It is only 2 miles away. Is it worth it to move to Belgium or Stutgart about the same salary (what I have been finding for TESA jobs vs. the non-TESA here in Heidelberg)? Actually I can still move to Belgium, Italy, UK, or any other European country and get the TESA equivalent status there.
Texmandie
I am probably the only legit holder of a German driver's license who has never taken a road test smile.gif

I happened to come of driving age in the time frame that the Texas Dept. of Transportation went temporarily insane and automatically granted every 16 year old who passed driver's ed a full license, swapped that for Maryland after college, then took a TESA job over here.

When another company won the contract I was on, we got Reduction In Force letters. Very important.

I called up the USAREUR RMV to ask what exactly I needed to send them in addition to my RIF letter to get a translation for a German driver's license (at that point, not totally sure I was going to get hired on with the new contract holder).

The helpful fellow listed the stuff, then said, "or you can just give me a credit card number and I'll do it right now."

Rock!

Yep, $25 and two days later, a translation that gave me not only the B1 and other small vehicle licenses good for life, but a BE and a C1, valid till I'm 50 (if I don't feel like retesting). Don't remember ever asking to be permitted to drive 7.5 ton trucks, but if I ever get the hankering...

You will need to register with the town you live in, because they have to endorse your application from the Landkreis. Several of my coworkers told me that was a stupid thing to do (along with having a German bank account), but I've passed TESA since getting the license, so whatever. Then again, I also do not own a house here and am merely dating a German.

With your DL translation in hand, go to your Landkreis/city driver's license office (mine was located with many of the other county offices, but my old landkreis has maybe 50,000 residents). They will want to see your USAREUR driver's license and probably stateside one as well, but remind them that you must have them back in order to legally operate your vehicle while it's registered with USAREUR, and that the Army is going to want their DL back when you leave. I had no trouble getting mine back after copying. You'll get an application form to take to your particular town's Rathaus.

There, if you hadn't earlier, you'll register as a resident. Bring your passport and SOFA card (to explain why you hadn't done this earlier), along with the DL application. Make sure that you state your lack of Catholic/official Lutheran affiliation (remember, there are independent Protestant churches in Germany). I got a little "tut-tutting" (not rude, though) for not registering earlier, but after paying the 5.10 EUR registration fee, got the clerk to vouch for my residency in that particular town and county.

Back to the DL office. Turned in the form, driver's license translation, and passport photo (slightly different from US ones, so get them made at a German store) and paid about 64 EUR.

Three weeks later, got a letter at my German address notifying me that my license was ready.

All in all, not too bad. More running around, but a less irritating experience than exchanging my Texas DL for a Maryland one.

And I'll never have to do it again!

(Unless I do something crazy like marry one of these guys and change my name...)

I would have suggested you get a German DL even if you were going to get picked up on another TESA contract, because it has come in handy when renting cars outside of Germany - I got better rates in Croatia than I would have with an American license.
bryan.wxup
Thanks for the info. I plan to do the same with my Stateside Commercial DL / SOFA DL. What office in particular handled the license for you though? Or can you not say..
Darkknight
You can get a translation of the US/DOD license from Vehicle registration, or the base law office.
The German Drivers license office is called the Fuehrerscheinstelle or if the city you live in is too
small to have a Fuehrerscheinstelle, try the KVR/Rathaus.
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