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About Starshollow

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  • Birthday 02/02/1967

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  • Location Starnberg
  • Nationality German
  • Hometown Munich
  • Gender Male
  • Year of birth
  • Interests finance, investment
    Tennis, Golf
    Reading (especially history, but also poems)

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  1. Where to get basic information on Taxes

    wow... well done ! Let us talk soon if you like/need Expat clients.   Cheerio  
  2. US Citizen foreign investment income

    hear-hear !
  3. Tax on donation

    Yes, that is correct. Having said that: if the parents die within the next 10 years, the money you received still counts to their estate and will be then part of the total for inheritance tax calculation, too.   Cheerio  
  4. if your employer would accept MAWISTA SCIENCE as you said and if you are 100% certain that afterwards, you won't continue in another job/employment in Germany, then by all means try to set up MAWISTA, though I can't promise you that the public health insurance will except that as a legally compliant substitute. But that is about the only option I can see here. Since you are under a German employment contract, according to EU regulations the taxes and social welfare contributions have to be applied by this country and not the UK. Not sure why you "have to" pay also extra into the NHS in the UK, but if that is the case, then its rather the UK-side that is off, because they should accept that you have health insurance from Germany with an EHIC-card an all (of course, how this is going to work out after Brexit is anyone's guess right now).    Cheerio  
  5. without a real residence in Germany, no German private health insurance will touch you (i.e. they won't accept an application from you). You could perchance sign up for an international health insurance/Expat health insurance but these insurance plans are usually not in the least compliant with German laws and requirements. Which means that as soon as you come back to Germany and have to re-enter the German system for real, you are heading for trouble. Usually in the form of pesky and expensive back-charges due to the use of non-compliant health insurance.   Cheerio  
  6. US Citizen foreign investment income

    I concur.   Cheerio  
  7. US Citizen residing in Germany. Where to invest?

    Yes, that is an important point that many - even within the banking and financial advice business - have not fully grasped yet: since January 2018 the taxation of ETFs is exactly the same whether you buy German/European ones or US domiciled ones. And fairly simple, too, as only 4 reporting parameters now are the base for the taxation 1. price of ETF shares on Jan 1st 2. price of ETF shares on Dec 31st 3. Dividends or interest paid 4. differentiation between 100% share-based funds, mixed funds and 100% bond-based funds.   That's about it.   Therefore for US-citizen in Germany the easiest and best choice is to invest in US-domiciled investment funds /ETFs because the European ones cause such serious tax-reporting headaches (read: costs) with the IRS as they are considered PFICs. Only problem is now that due to MIFID II the product information from US-domiciled funds is not compliant with EU-regulation.  Which is why US-banks and platforms will not allow anymore for US-citizens residing in the EU to directly invest into US-domiciled funds from now on.  This is where solutions come in with a specialized financial advisor who acts basically as a legal buffer between the US-bank/platform the end-consumer here in the EU.  Usually in the form of a discretionary manager for the clients. The only other alternative if you want/need to invest into EU-domiciled funds is to use existing 401k and IRA accounts in the US for that, because they are exempt from the PFIC-rules for tax reporting with the IRS. BUt, as said above, there is no real good reason to do that anymore at least from a German taxation point of view.    Cheerio  
  8. US Citizen residing in Germany. Where to invest?

    last I heard, if you do NOT have a US-address, the Augsburger Aktienbank will accept you as a client and there you can set up an account that invests directly into stocks. Cheerio  
  9. US Citizen residing in Germany. Where to invest?

      Charles Schwab have just informed clients with residence in the EU that starting Sep. 19th they will not allow these clients anymore to invest newly into US-domiciled investment funds anymore.  Since investing in non-US-funds is creating the PFIC-hazzard for investors with the IRS-reporting, this is not good news for many US-citizens who live in Germany, too.  The same is true, btw,. for Interactive Brokers (I am on close contact with them). Here is an excerpt from the info that Charles Schwab sent to one of our clients: New U.S. ETFs and ETNs purchase restrictions as of September 19   Beginning September 19, 2019, Schwab clients who are residents of the E.U. will no longer be able to purchase U.S.-registered exchange-traded funds (ETFs) and exchange-traded notes (ETNs). What this means for your account. This restriction results from regulatory changes and affects all residents of the E.U. With this change:     • You will be able to maintain any existing U.S. ETF or ETN positions you hold, but you will not be able to purchase more.   • Dividends can no longer be reinvested in U.S. ETFs or ETNs.   • You may liquidate U.S. ETFs or ETNs, but you will not be able to repurchase them.       Cheerio .
  10. Public vs. private health insurance

      no so stupid, trust me :-) The German system is inherently complex and contradictory even, therefore there are no stupid questions when it comes to the German health insurance system.   Q1: The one with public health insurance (GKV) can, of course, stay with public health insurance. However, if the income of the spouse with private health insurance (PKV) has significantly higher income and the one with GKV is not an employee, parts of the income of the PKV-spouse will be counted towards setting the premiums/contributions into the GKV. So, if one is a stay-at-home-spouse with no real source of income, the monthly dues will not be those minimum contributions around 180 EUR p.m. but will rather climb all the way up to max. 50% of the highest public contribution.    Children can later be insured in GKV, too. But at costs. I.e. the min. monthly contribution has to be paid for each child.   Q2: depends on where you move and what kind of health insurance you'll have there. If you move to a location with compulsory national/state health insurance, the PKV can be terminated at once. So, bascially moving to any EU-memberstate will get you out of PKV that way. If you move outside the EU, PKV can (!) be continued if you so wish (which you have to tell your PKV) but otherwise the PKV will get terminated when you deregister your residence from Germany to abroad.   Cheerio  
  11. Healthcare and Retirement

      not "for free", though it is a common misconception. You and everyone else has paid for the NHS thru your taxes, and not too little, actually. The main difference is that in Germany you pay direct contributions. But the health costs are not very different between UK and DE according to the OECD statistics, hence the population in UK pays about the same like the Germans, just in a different way. Otherwise just read what PandaMunich wrote above.   Cheerio  
  12. if and when you travel for your company uproad. they'll have ALWAYS to apply for a  A1-form (which many employers don't know and can lead to very costly and unpleasant consequences if fined) and of course, the employer has to provide coverage for health and accidents and whatnot. A good pay-roll-service provider in Germany - which I very strongly recommend your employer finds and uses - can assist with that.   As a member of public insurance, you'll need constant travel health insurance yourself anyway if and when you travel outside Germany. While there is some solid basic coverage within the EU (just make sure you'll get yourself an EHIC-Card, too) but you can still get stuck with some cost-differences if you are unlucky. But outside the EU you should never travel without having travel-health insurance for yourself anyway.   Cheerio  
  13. Planning for retirement

    as always, very wise words from John Gunn! The correct process for investment advice and pension planning always has to be to check that the main risks in life a properly covered by those insurances that are truly important. Once that is verified or taken care off, the actual investment advice process (including in many cases the setting up of dedicated pension plans) can start for real. Cheerio  
  14. Planning for retirement

    saving and simply investing is always a good start. However, a pension assurance offers life-long payouts regardless of how long you'll live whereas accumulated capital will only reach as long as your pay-out plan allows.  That is why setting up some pension plan can make a lot of sense - you'll protect yourself against the "risk" of longevity,  strange as it may sound to consider this a "risk".   As a self-employed you don't have many options to invest into the German public pension system (and many would doubt the sense of doing so probably). Which leaves you with two main options: 1 ) a RÜRUP pension plan that comes with some tax benefits on one hand but also works exactly like a public pension in so far that you cannot take out the capital again and also can't cash in when you reach retirement... you'll receive a monthly pension for the rest of your life instead. 2 ) or a private pension plan with no tax benefits, but full flexibility later with regards to accessing the invested capital   It might make sense to seek professional advice for your future investment and pension planning. Several advisors specialized in catering to Expats advertise here on Toytown, many of them have a track record that you can check and then select one.   Cheerio  
  15. Bavaria and the real estate bubble

    well, in the south of Munich (like Oberhaching, for instance - which is not even among the top-locations), prices for houses have doubled on average since 2012. I do believe that this is not a healthy development and I also believe that sometime during the next 5-10 years there will be a period of time when prices for real-estate will take a serious nosedive ...for a while. However, since the demographics show that the larger Munich area is going to grow by another 10% thru migration from other areas of Bavaria/Germany/therestofthefuckingworld and since Munich does not allow high-rising buildings much and the counties around Munich do not want to free too much land for building new houses and all, the demand will continue to outpace what is offered on the market and hence prices will consequently continue to grow in a long-term trend.  IMO.   Cheerio