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. When I got here as a student, I worked with the Volksbank because they had a free account for students. What I didn't realize was that I could not use this Volksbank service in any other city.

It's not like in the US when, for example, you have a Wells Fargo and it is irrelevant in which Wells Fargo you go to in another city or state.

I eventually switched to Postbank because of their online services and CashGroup membership.

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Traveling Mailbox

Traveling Mailbox serves thousands of travelers, expats, digital nomads, businesses, individuals and others in over 47 Countries by scanning their postal mail so they can view it online anywhere in the world. They provide customer service 7 days a week so if you need assistance, it is just a phone call away. Traveling Mailbox works with Evernote, Bill.com and Dropbox. And, there are Traveling Mailbox apps available for iOS and Android devices.
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Click connect to have our partner contact you via e-mail and/or phone.

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?

Take a German-speaking friend with you! Some German banks charge you for every transaction you make and a normal checking account can cost you ¬15 per quarter or more. Most banks offer a "Salary Account" where if you have a minimum 1000 deposit each month, the account is free. Or free accounts for those under 27.

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

I have not invested, but don't expect tax breaks in investing in Germany.

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

Shop around and read up. Don't hesitate to get a second opinion. The finance planers need to eat too so they will sell you whatever they can.

A few years back I was loooking into private retirement funds and was encouraged to sign up for the "Riester Rente" a government-sponsored retirement plan. I declined cause I was too confused about it all.

Anyhow, I just found out (2 years later) that this retirement money will only be paid out to those living in Germany during their retirement. So even a German who retirees in Mallorca, cannot collect this!

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)?

Each state has what is called the "Lohnsteuerhilfe". They charge about 100 (depends on salary) to do your taxes. A tax advisor who specializes in ex-pat cases is obviously the best, but their prices usually start at 250.

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

If you are not fluent, forget it. Or use a tax program. Last year, I used "WISO", but my German is pretty good. Still, tax language is tough. Get an advisor. I will next year.