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About WanWhiteWolf

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  • Location Munich
  • Nationality Romanian
  • Gender Male
  • Year of birth 1986
  • Interests Typical nerd: Astrophysics, Psychology, Gaming. Rational idealist.

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  1. Sufficient salary ranges in and around Munich

    I just had a phone interview for a “Software lead” position. All went well until the salary expectation part.    I asked 90k. I am already earning 80k as an “Senior Software Engineer” with no team management responsibility. They said that even 65k would be above average and that my expectation is unrealistic.    Glassdoor seems to confirm what they say but I find the information hard to believe. On payscale I see conflicting information.    Do software leading roles really go for 60k?         
  2. Sufficient salary ranges in and around Munich

      I was just saying how I did it and how a colleague of mine did it - who is also the one which gave me the idea in the first place. I couldn't care less if anyone else does it.    Or maybe we are both magicians and we don't know. 
  3. Getting salary from current and previous employer

    I was in a similar situation a few years ago.    The HR told me that if I start the new job with a regular contract, I will not get  the full extent of the "benefits".  She hinted that it may be possible to work for another company as freelancer.    You might consider making a freelance contract for 3 months (which is quite common). As a freelance you can opt out of the pension and since you already have a a health insurance, you don't need to pay it twice. Although the hourly rate for a freelancer is much higher for the same job as an intern, you probably want to ask the same amount as they offered you. Keep in mind that the company pays half of the pension and health insurance contribution so you can ask for that money as well.    Example: You have a salary of 60k. The Employer pays 65-66k in total for you.    However, you might need an intermediate company. A lot of the employers - due to liability reasons - accept freelancers only hired though intermediate companies. The charges around 25-30% of your income.    Also, most likely your current employer needs to agree with this. In your original contract you might have something like "if you perform outside work in the similar field, you need to get approval from the company". They have nothing to lose but it is not in their interest. 
  4. Verbal contracts are taken into consideration only if they can be proven. A simply witness may not be enough.  For example, if a person were to say something while on camera, that would stand in court. However, verbal contracts, even if proven,  have a limit for which you can claim. After a certain threshold, you are required to have a written contract. I do not know what is the threshold.    Text messages can be legal binding but a single message might not be enough. The court checks the context and other actions related to the message. Additionally you would have to prove that Whatsapp has the same security and assurance as a text message would. Having a lawyer work to state these points - which you will need since I am pretty sure Whatsapp is covered in the written law - may rack up to a few thousand Euros.     Try to get an agreement with the customer - even if you take less money. Split the order or charge him for the cancelled order and use the inventory for future sales. Unless you are looking a significant loses (e.g. 20k+), it is probably not worth bothering with the legal system. 
  5. Contributions paid by employer

      I agree with you that buying power is much important than the income but the current system only makes it more difficult to compare against since each country has it's own % on top of your salary with various benefits.    You can compare and equivalate expenses (e.g. rent, groceries) via several sites like numbeo so it would be much more convenient to have the gross income including all benefits. It would also help comparing against different employment options (e.g. freelancer).    Since the model adopted is - in my view - a small complication, then it must be a reason why it was chosen. You don't complicate things for nothing.    As a side note, US has and always had a higher purchasing power than Germany. As of 2019, the average is about 5%:  https://www.numbeo.com/cost-of-living/rankings_by_country.jsp     Of course, the families fare better in Germany while the ambitious singles fare better in U.S. but it does average out.    If you want to calculate for a specific individual (e.g. you), then it becomes a search adventure.   
  6. Contributions paid by employer

    It would be much more easier to compare income between countries if one wouldn’t have to take the “superbrutto” of each country into account.    On the other hand, if all contributions would be paid by the employee your net income would be less than 50% of your brutto for middle class employee.   The only reason I can i think off is the psychological effect. But I doubt the German government thought of this when they setup the current system.       
  7. Contributions paid by employer

    Dear TT,    I am curious about the reason behind "forcing" the employer to pay half of pension and health insurance.    Why not simply put the taxes on employee and let the employer pay a higher bruto?    Thank you.
  8. Assistance when buying an apartment in Munich

    If you intend to get a bank loan, then you can use Hypofriend   They are mortgage  brokers for expats. They will guide you though the whole process and required documents in English.The bank will pay them a fee if the loan is secured though them. The loan offer I got through them was far better than  any of the 4 offers I got via the Bank "Financial Berater".    You can request for English translator or English translation of the buying contract at the notary. The notary will check the legal requirements and has to make sure you understand what you are buying.    As a general note the following criteria affects the apartment price significantly and you should be aware of:  - The apartment you are buying is not in land leasing (Erbbaurecht).  - The current and future maintenance costs "Hausgeld". This information is found in "Eigentümerversammlung" - wrriten form of yearly owners meeting. Depending incoming maintenance projects, you can estimate how much you need to pay in the next 5-10 years. To get a feeling, if your building requires a roof replacement you can expect 20-30k from your pocket. The year in which the building was built is generally a good indicative.  -  The current apartment does not have a tenant.If the tenant does not want to move after you make the purchase, you need to take legal action which will cost you some money and stress.    The following fees is what you can expect:  - Purchase tax (3.57%)  - Notary tax (1.5-2.0 %)  - Grundbuch (0.75%)  - Real Estate agent - if you use one (3.5 - 7%)  - Various insurances (e.g. fire, water, storm ...etc). Depending on case you can expect 100-300/year.    In my case, the bank who provided the loan estimated the real estate based on data provided to them. If the loan you need from them is not below their property estimation, then they might request you to either put more money in advance or pay for the bank real estate agent for the on site property estimation.     
  9. The new owner has the right to move in. He can kick you out and claim the place for himself. It will take a few months but it will happen regardless.    If the new owner does not want to move in then it might be more difficult to kick you (e.g. an investor). However, an investor might be O.K. with the idea - depending on how high is your rent.    If I were you, I would ask 20k and offer the following:  - Sign / agree that the lease contract will end in 3 months  - Basic renovation of the place (1-2k from my side)  - Be friendly / available when the owner comes with potential buyers    The landlord has the advantage that:  - He can look for buyers while he still gets rent from you  - By agreeing to help him (renovation + your availability to be home...etc), you increase the chance for a high purchase  - He has a signed contract that says that you will move so there is no option restriction for the new buyer    However, if the owner sells it to an investor, you may get 18k (20k-renovation)  and stay in a renovated apartment for similar price for what you are paying now.             
  10. Tax on stock investment

    Dear TT,    I am looking into investing options here in Germany.  I am curious about stocks at the moment.    From what I read, the taxes apply as follows:    .1. Tax on Stock dividend Divident_Tax = (Withholding_Tax + Solidarity_Tax_Withholding) x Investment_Type_Index x (100 - Corporate_Tax) + Corporate_Tax Withholding tax = 25%  Solidarity tax on withholding = 1.375 %  InvestmentTypeIndex_Tax = 0.7 for stocks  Corporate tax = 15%  Dividend Tax = Dividend_Income x (25% + 1.375%) x 0.7 x 0.85 + 15%    -> Divident Tax = 30.69 % of dividend income    I don't know if this is right, but if it is, it means the tax is more than double than U.S (15%)    .2. Tax on estimated gain    Fictive Profit = Stock_Value x (Estimated_Gain) x (Withholding_Tax + Solidarity_Tax_Withholding) x 0.7    The estimated gain seems to be some variable depending on year. I see values like 0.59% - 1.1%   Fictive profit tax = Stock_Value x 0.011 x 0.26375 x 0.7 Fictive profit tax = Stock_Value x 0.00203    -> Fictive profit tax = 0.203% of stock value    The tax is a bit higher since you lose the compound interest benefit from the money you pay as tax.    If the stock gained less than Estimated_Gain, then you pay tax only on the actual gain.    .3. Tax on Stock sale    Sale Tax = (Stock_Sale_Price - Stock_Buying_Price - Total_Fictive_Tax_Already_Paid) x 0.7 x (Withholding_Tax + Solidarity_Tax_Withholding) Sale Tax  = Sale Profit x 0.7 x 0.26375  Sale Tax = Sale Profit x 0.184   -> Sale Tax = 18.4% of profit on sale  Now a few questions: .1. Is the above accurate?  .2. If you sell for a loss, do you get tax reduction on your income (e.g. salary)?  .3. I see that there is an allowance of 801 Euro of non-taxable income. Is the allowance already included in your salary or it is on top of that?  .4. If I move to another country, will I pay the full sale tax on that country? Let's assume that I go and work 1 year as freelance in a tax haven country. If I sell all my stocks there, do I pay any tax in Germany?   Thank you in advance.