WanWhiteWolf

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Everything posted by WanWhiteWolf

  1. 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. 
  2. 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. 
  3. 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. 
  4. 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.
  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. 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.     
  8. 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.             
  9. 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.
  10. Unemployment benefits if you resign

    Does anyone know if the employer can cut the salary of someone in order to persuade him/her to leave?    One of my former colleagues said that he got a paycheck cut. I cannot really judge on his performance as I am no longer working with him. However, it got me thinking if the employer can use this tactic to avoid penalties of firing someone. 
  11. Salary ranges Web Developer in Munich

      You can also check the "Family" section of the forum:  https://www.toytowngermany.com/forum/forum/65-munich-family-life/    
  12. Data protection act and CV

    As long as you are employed there, they have the right to put your name in the bidding process.  In some cases they will put names of people from other projects in the company. They can always argue that "this is their plan" and later they can say that "the plan changed".    Unless you want to have serious legal problems, I would advise you to play ball. If you sabotage a company, - which is what you are trying to do now -  you can end up paying fines for the rest of your life. For example, they can even charge you with industrial espionage since you are effectively working on behalf on another company to sabotage your current company's success. People have gone to prison for this. Do you really want to go that far?    Anyway, why do you even care? Let them put whatever name they want on the bid. If they win, let them figure out how to make the project without the proper resources. Switching the contractor because of lack of resources is quite common nowadays. Half of the projects in our company were not won in the bidding phase. The customer simply comes to us after he realizes that his contractor took the names from google and put work students to do a senior job. 
  13. Looking for an interesting name for a real estate company

    Wolf Immobilien    Current trend is to live in packs.  Also, the market is pretty savage in metropolitan areas. 
  14. Salary ranges Web Developer in Munich

    Hello Keri,    Whether 130K per year is enough or not, depends largely on your lifestyle.I can give you a basic breakdown so you will have a reference point. You can calculate your net salary here: https://www.brutto-netto-rechner.info/gehalt/gross_net_calculator_germany.php     At 130k per year at class 3 with two children and no church tax I get  82.884,12 net income. Expenses: .1. Rent: You can expect 1500-2000 Euro per month for a 3 room apartment -> 21k year  .2. Food & Consumables: 1300-2000 Euro per month assuming 1-2 nights per week out -> 20k year  .3.Contracts: Phones, Liability insurances, Radio tax, Netflix -> 1k year .4. Car: I don't own a car but from what I know it is around 3-4k year    For your children, depending on their age, you will have different expenses. If they need to go to kindergarden, you should enroll them as quickly as possible. My colleagues told me that as a rule of thumb, you need to book a public kindergarden around the same time the child is born. Private is easier to find but obviously more expensive.    .5. Children: Let's ballpark it on 1k / month -> 12k year    This would cover from what I personally view the "mandatory" expenses. We are are 57k. You are still left with 25k per year. That's around 2k per month as backup or other expenses (e.g. furniture, latest iPhone ..etc)    Side note: Buy your clothes in U.S. They are significantly cheaper.    As whether the income is fair, that is complicated question. Having lived in both U.S. and Germany I can tell you that the appreciation for technical skills is considerably lower in Germany. Thus even a big technical gap between you and a power point manager will not result in a big income difference.    A good Senior Web Developer takes home 85k per year.  A Software Manager in automotive industry handling a team of 22 Engineers takes 122k per year.    That is the only 2 examples I know that might be somewhat relevant. However, when discussing top 1%, general rules don't apply. You can always poke intermediate companies to see what offers you get.    I would recommend that on top of you salary to negotiate a relocation package. You can expect another 10k upfront otherwise.You will need a real estate agent to find a rent. You can also try on your own but I do not know anyone who managed to find a reasonable rent within 2 months of moving to Munich. The law is heavily favoring the tenants so landords tend to be extremely picky. Last time I looked for a rent I had to prepare 37 documents before I got the place.   After you will settle, you will most likely love the city. Whether that makes up for the pay-gap, only time will tell.   
  15. Apartment price estimation

    Dear TT,    My landlord offered to sell me the apartment in which I am currently living. The price is, in my judgement, under the market value.    Of course, I am interested in a professional's opinion so when I went to the bank to discuss loan options, I also asked if they offered such service. The "Berater" was more than willing to help by sending the bank's specialist who charges a fee of 1500-2000 Euros. Considering that we are talking about a 32 sqm apartment, the service seems to me quite expensive.    Does anyone know any decent priced online real estimate agent?    What I am expecting to provide:  - I fill some form with which includes all the apartment details  - I upload some photos for the agent to have a rough idea of the apartment state  - I pay via debit transfer < 150 Euro    What I am expecting to receive:  - A range of ~20k of the real state (e.g. 150k - 170k)    I saw an option on immowelt.de but I am not sure how good it is.   Is my expectation unreal?  Any recommendations?    Thank you.   Edit: The real estate is in Munich
  16. Sufficient salary ranges in and around Munich

      We are just comparing networth of a real estate and stocks.    OP,    Sorry for thread highjacking. The moral of the story that the salary range should be enough so you can buy stocks or a real estate :)        
  17. Sufficient salary ranges in and around Munich

      Buying a place that you can cover within 10 years is profitable.    For example: 150K apartment 1 room. You put 30k down and 120k from the bank.    You pay 1k per month. At a 0.9 - 1% interest rate (you can even get lower), you are looking at 5-6k interest in 10 years.     Assuming you pay all taxes yourself In total you pay 150K + 5.2k (sell tax) + 3k (notary) + 5k (real estate agent). You are looking at 160k payment.    A 1 room apartment is around 800 Euro / month. You can average 400 euro for taxes (nebenkosten, hausegeld ..etc). Means for every rent payment you "lose" 400 Euro -> 4800 Euro / year -> 48000 Euro in 10 years.    Even if you ignore the fact that you can deduct taxes, do whatever you want in the apartment, not worry that you will get kicked and have to move, rent increase per 10 years ...etc. you still end up with a property that is likely to increase 25% in next 10 years.    You can always sell it at least for the price you bought it so you get 50k/ years or 5k / year profit.  
  18. Mandatory residence Germany

    Dear TT,    I apologize if this topic was discussed but I couldn't find a clear answer.    A friend - IT freelancer - is interested in taking a project in Germany. He would like to keep the residency in his home country (east Europe, part of EU) to benefit a lower income taxation. From what I found, the residency depends on "center of life" - whatever that means.    .1. Does anyone know from which point you are "forced" into German residency? Let's say he stays 3 weeks every 3 months in Germany.   .2. Does the fact that he is single or married with/without children have any impact?    Thank you.
  19.   I will ask time next time I meet him.    I know he travels lot to Czech Republic - where he was born and owns a house -  so he might have declared residency there.    As a side, what would happen if someone cannot afford the private insurance. If you have to fork 1.500 per month on a private insurance you won't be able to cover your monthly expenses from a pension generated on a 65k average income (and that is in the happy event the pension system holds on today's standard)    Do you declare yourself bankrupt and let the social services foot the bill? 
  20.   A former colleague told me that he decided to work less hours (e.g. part time) for one year once he hit 53. He switched to public and remained public after 1 year he switched back to full contract. I don't know if this still works. I was also considering doing this but I figured the risk of not being able to switch later outweighs the benefits.    If you properly account/plan for the waiting time associated with public insurance, everything else has less importance. Sure, if you have a very specific problem then you might need an extraordinary doctor who treats only private patients. You can always pay from your own pocket if that is ever the case. It's not like private insurance will have full coverage for exceptional cases.    In my view, private insurance is for the rich (a.k.a financially independent individuals). The same way you can buy a Porsche with all your savings  or a 2000 Euro purse with a 60k income. It's not for us.    As a reference, a colleague who retired last year said he stopped paying for medical insurance (private). It became so expensive that he rather pays  2000 Euro every time he needs a special medical procedure. He is rich so this is not a concern for him. But I am not sure if I would recommend someone private insurance unless he/she has a significant passive income. 
  21. Mandatory residence Germany

      The law, as written in native language, is to interpretative. Probably the Romanian government simply took whatever was written in German, use google translate and sent it to the parliament.    I never though I would say this, but the German law/wording might give me more insight. 
  22. Buying property in Germany, living overseas

    I do not have any legal background. I am simply telling you what I know. Use the information with a grain of salt.   There is no limitations to foreigners or non-residence owning a house. In fact, according to DB Research a good part of real state purchases were from outside of Germany (France, Rusia, Israel). You can even use a German bank to finance your German real estate as a non-resident. The bank conditions require a higher down payment but that's the only difference as far as I know.    Germany is part of world wide "Double Tax Agreement". Some literature here. You have to check if the country where you get the income tax is part of the agreement.    It basically stipulates that if you have multiple incomes worldwide you pay the income / capital tax only in the country you are resident.    If you are not generating any income in Germany, I would guess that the only tax you have to pay in Germany is property related taxes.
  23. Mandatory residence Germany

      If they do that, then the DTA is void. Because if the said individual is expected by Romanian law to pay taxes there, he cannot simply say "I pay them in Germany". We would be double taxed. And if states would need to sort this out and potentially change the law - that is going to take some time.   Does anyone know where the DTA for Germany is? I would be curious if there is a similar clause. 
  24. Mandatory residence Germany

      "If the person has two nationalities or none in the given states, the "competent" authorities will decide on the matter"    All in all, let me guys know if you need some real estate advice in Romania     
  25. Mandatory residence Germany

    Thank you for the answers.      He is from Romania - same as me.  He is married. His wife works in Romania and they have a house there. In his case he would have personal ties in his home country but most of his income would be from Germany.    However, if he is not resident, then "Center of life" would not be applicable as there is no conflict between two residencies.  I do not know what DTA is. Could you please link me to the relevant information?    If he is taxed in Germany, does this mean that all additional income from his home country will be taxed in Germany as well? I am not sure if the Romanian tax office would indulge the idea of a person who is living 75% of his time in the country and gets passive income from within the country, pays taxes to a foreign government. On the other hand, from what I read, all income is taxed in one country to avoid tax evasion / routing income through tax havens.