Pension and health insurance for U.S. citizens

I have been offered an engineering position in Munich. Classified as a German employee, US citizen.

The arrangement with the company per contract and correspondence states that pension and health care will be deducted from my salary. I am a US citizen. Can the pension payments be applied to US social security or is this just lost to the German government?

Health care costs... I am eligible for national health care? Do I pay a share of the costs?

It would appear that 35% of my gross will be deducted. Not clear on what I am obligated for.

The pension payments are to the German public system, but if you spend less than 5 years here you can request a refund of your contributions (not the employer's) 2 years after leaving Germany. There is also a totalization agreement between Germany and the US.

You will probably make enough to opt for private health insurance, which, depending on your age, can be somewhat less expensive.

If you are single, a bit more than 45% of your gross salary (generally speaking) will be deducted for taxes, health insurance, etc.

The German pension agency has a wonderful document in English with great info for Americans working in Germany:
http://www.deutsche-rentenversicherung.de/...rmany__usa.html

Would be worthwhile for you to check out the WIKI here on Toytown about health insurance (2007 update version). AS Conquistador mentiones above: it could be that your eligble for private health insurance and if you are single and only here for limited time, you could indeed save a good chunk of money. In case you rather want someone to check this out for you... get yourself a good independent broker/advisor to check your options before you sign on with anything.

Cheerio

Hi, If you are an expat, as in you hold a passport for a country other than the one you reside in, then you should look into offshore investments, the biggest benefit is compounded tax free growth

you have to declare it on your tax return ... so no it's not suddenly tax free.

paulrhodes: most of the offshore plans I know deduct a hefty charge of costs in the first couple of years, therefore the total net yield after costs should be compared closely. For Expats who stay for a couple of years in Germany it makes more sense to invest in local plans with some direct subsidies and tax breakes. These plans can come without "Zillmerung", i.e. without deduction of costs for the whole duration up front and you just pay costs as you a go like with a normal investment funds saving plan... which makes more sense from my standpoint.
But that does not mean to say that each and every offshore plan is bad from the cost side, there are some reasonable priced ones as well which make a lot of sense for people who need to have something "portable" because they move residence often. I just have seen too many Great-tax-saving-offshore-plans with German and Expat clients which were definetly not worth their money when compared to other available investment options...

And Gorgo is correct: one would still be liable to report yields from these plans eventually to tax authorities in your country of residence because most countries tax worldwide income nowadays. But it is of course easier to, hem, forget to report an offshore plan due to the lack of papertrail - unless one pays in regularily from one#s bank account in the country of residence, because this is sure to be found out eventually...

Cheerio