Expat Advice: Financial Issues in Munich, Germany

What is the name of the city or town that you are reporting on?

Munich

Which banks do you use? If you have a local account, which bank do you use? How do you like it? Do you also have an account in your home country? Which bank? Do they charge for ATM withdrawals? Do they charge a lot for international wire transfers? How has it been working with them from abroad? Do you use a special international wire transfer service? Do you use an online bank? If so, tell us about them.

No. Only a bank that had a representative with good English and who came to our home to sign us up.

Homelike
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We've partnered with Homelike, to connect expats and newcomers with temporary accommodations in Germany. If you're moving to Germany, rent a short-term, furnished apartment or home for the first few months from Homelike and take your time figuring out the best place to live in Germany.

Homelike

We've partnered with Homelike, to connect expats and newcomers with temporary accommodations in Germany. If you're moving to Germany, rent a short-term, furnished apartment or home for the first few months from Homelike and take your time figuring out the best place to live in Germany.
Learn More

What advice would you offer others about banking as an expat in your country? What do you wish you had known about banking when you first arrived?

BEWARE. I always thought of Germany as an efficient, industrialized nation but in the area of banking, they are very backward. Germany is not consumer-friendly and the banking services are poor. You get nickel & dimed for many services that are typically free in the U.S. And if you are depending on help in English, be aware that while you may think communication was clear, there often can be errors of this sort too. One hard lesson I learned was not to write checks to transfer money but to use wires. Although the bank says they cash your U.S. funds check at "going rate" this rate is not the same rate you receive if using a wire. If the amount is for more than several hundred dollars, this can make a big difference. If I remember correctly, the discount is about 5% off of the actual value of your money when you cash a U.S. funds check into Germany currency.

What sort of challenges or frustrations have you encountered as an investor living overseas? Please describe.

I haven't invested in Germany. I kept my U.S. investment account and continue to use their online services.

What advice was particularly helpful to you in managing your finances? What advice would you give? Any other thoughts?

Just to try to figure out all the hidden taxes. Living in a socialist nation like Germany means that everything costs a lot more than the price indicates. Aside from higher income taxes, there are many other add-on fees that you aren't accustomed to coming from the U.S.

Do you do your own taxes, use a local firm, an expat-oriented firm or does your employer handle this for you (i.e. via an corporate tax firm)?

I use a local accounting firm.

What advice could you offer others about doing your taxes as an expat?

If you aren't fluent in the language, you're going to need help!