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Posts posted by Paul@CRCIE

  1. Now the bank is charging you 0,5% on your savings and it's going to hit you, but the annual 2% or 3% cost of it being in cash for a few years was okay? Not having a go here, just pointig out that inflation is also a cost or fee and should be seen as so. 

    Why don't you just transfer it to a 30 day Festgeld account? You won't receive interest, but there would be no bank fees, but it will again be eaten by inflation until it's invested in property. 


  2. Dear @Emmbee, so sorry to hear what has happened. I understand what a stressful period this will be. 


    I can't help with the specifics of your email but my advice is do not deal with your insurance company directly. Employee the services of a claims assistant who will handle your claim from A to Z. 


    There are many in the internet, but I normally recommend 


    Please try yourself to contact them, but if you fail to find someone who speaks English, please DM and I will give you the contact of someone within the company. 


    It is also highly likely that there is a clause in your insurance contract in which your insurance company will pay their fees. 


    Just give your insurance details to the claims assistant and they will take it from there. 


    Best of luck with everything!


  3. Is there no section in the Umsatzsteuergesetz that confirms dealing with such a client is VAT expemt. 


    For example, when I invoice a client for a payment related to a mortgage payment there is not VAT to be included on this invoice. I just need to include something on the invoice that the pament is exempt from VAT according to §4 Nr. 8a UStG.


    Perhaps it's catered for in the UStG. somewhere?


  4. @elmixsorry for only getting this now, but there was nothing official brought into law from March 2020 that would put restrictions on US citizens borrowing. The FATCA regulations that @franklanmentions is something completely different regarding investments for US citizens overseas.

    It’s more likely that Allianz perhaps changed their own criteria on that date with regards to lending generally as the market was volatile and there was a LOT of uncertainty due to Covid concerns at that point.

    I would say it was just bad timing and an internal tightening of the belt in Allianz than anything else.

    And your Allianz “Broker” is not a Broker if tied to Allianz 😊.

    I hope you got your home in the meantime!

    And I hope that answers your questions also @VisualGeologist


  5. Hi @Gambatte,


    Company pensions can be taken as a lump sum if preferred, so you have that option if you're an employee.


    The Riester allows you to cashout 30% at retirement. 


    Then the "private rente" is a pension plan that allows full cash out, but there is no tax relief at the front end for this pension. You only receive your pension tax free at retirement, even the growth / investment return on the pension is taxable in retirement, so these really are just an expensive savings plan. 


    Hope that helps!




  6. Generally speaking the answer is no. However, I know a Bank that will lend at German rates for properties in Portugal, Spain and France. Perhaps Italy too, can't remember exactly. 


    However, in order to obtain approval you would need assets and income in Germany. If not a house they can take security on then a decent level of assets that the Bank would hold. 


    Let me know if you need more assistance. 


  7. Hi Postdocdoc,

    The issue the bank has is not just the Blue Card, it’s mostly the temporary contracts. And tbh, I think you are lucky to have an offer at all considering you have temporary residency and temporary work contracts. Basically, even if you wait until your wife has a Blue Card, it doesn’t mean you will get a better offer at that point.

    Yes the Bausparvertrag is expensive but it’s Wustenrot’s way off offsetting the risk.

    What rate was the main loan offered to you at, can I ask?


  8. Hi @audioboy77, your residency really doesn't play any role here. If you decide to hold the property for a longer term refinancing the loan shouldn't be an issue, plenty of lenders will finance non-residents. 


    If you want a variable rate loan you should get this from your current lender but you can expect to pay something like 5% APR for the year you hold onto the property. 


  9. Hi @blitzyev,


    It absolutely makes sense to protect your income with a BU policy, just make sure your policy is valid worldwide, so you can keep it when you leave Germany. Most are. 


    You won't receive money back as it's not a savings plan. Your premiums are paying for the risk, in the event something happens you, the insurance company will then substitute your income. 


    Technically you can write off your premiums for BU but in reality you can't as your annual allowance is taken up completely by your health insurance premiums. However, you can wrap the insurance up with a pension meaning you get tax relief but whether a pension is suitable or not depends on your own situation and plans. 


    All the best.


  10. My reading of the situation is a little different. 

    The fact the OP has not mentioned anything about an underlying life assurance I would assume he is talking about a “fondsgebundene private Rentenversicherung” which I would consider to be an “Annuity” if you look at Art. 18 of the DTA.


    The private Rentenversicherung is similar to a Roth IRA. You make contributions from your after-tax income but you will pay tax only on the profits in retirement.

    In the real world there is no difference between a pension and annuity, the annuity being a term to describe how its benefits can be paid out at retirement. However, in the DTA,  pensions seem to be considered in terms of retirement savings from an employment and annuities in terms of a private pension / retirement contract, where an individual saves an amount in agreement for another amount at a time in the future, ie, saving when you’re earning in agreement for a pension income / annuity in retirement.

    It’s my understanding that it is an FBAR account and should be reported if the value is in excess of 200k USD or double that amount if married filing jointly and this threshold rule applies even if it is a “specified foreign asset“.

    I am not a Tax Advisor and these issues should always be run by your Tax Advisor although German Tax Advisors won’t touch these issues.

    On a separate note and in reply to Straightpoop’s comment:

    NB:  It is important to distinguish between a "pension" and an "annuity".  The former is paid "on account of past employment" and the latter is nothing more than investment income.  Pensions typically get favorable tax treatment and annuities not so much.

    I would disagree with this mostly. Pensions are not considered to be “on account of past employment” generally speaking as people can also purchase private pensions but it does appear to be considered this way in the DTA. Also, Annuities get good tax relief in the USA and in Germany in the form of a Rürup or Basisrente.


  11. Hi, there's one company that I know of that's offering pretty comprehensive health insurance for travelling outside of Germany for a period of up to 5 years. This can also be extended with pre-approval from the insurer. USA / Canada also incl. in the cover.


    They have a few different levels of care / tariff's so feel free to get in touch and I can get you info.


    All the best,