Tips for German salaries

Hi all,

in my quest to expat to the UK/Ireland I got an opportunity in Germany (Dusseldorf). I have some difficulties in making a comparison. For UK (London Area) I am dealing for a salary around 75/80k GBP/year gross. For this job in Dusseldorf the salary braket is 65/70k. Now, how can I interpret this salary? I mean, without considering seniority, sector, etc-

- is 65k/year for a single 35yo not married a decent salary for the area?
- is normal to pay 12, 13 or 14 months?
- which is a safe site to calculate net salary from gross?  I tried two but I got real different figures (2911 on one and 3400 on the othere!)
- Do you get the Net salary or do you have to pay some taxes by your own at the end of the year?
- is there any fiscal incentive for people who relocate to Germany?
- what about house prices? The bracket in numbeo is large. I tried www.immobilienscout24.de and I have found 80mq for 640 euro in Krefeld, Uerdingen that seems too cheap from what I can understand

Thanks for any tip and trick

S.

downshifter wrote:

- is 65k/year for a single 35yo not married a decent salary for the area?


It is far above the German average income for a family, so unless you have an unusually expensive lifestyle, you should be fine and have savings.

downshifter wrote:

- is normal to pay 12, 13 or 14 months?


This depends on the industry and job seniority - anything is possible.

downshifter wrote:

- which is a safe site to calculate net salary from gross?  I tried two but I got real different figures (2911 on one and 3400 on the othere!)


It's not the site (the calculation method is same on all - I usually use brutto-netto-rechner.info), but the complexity of the system: You need to set the exact parameters for your case, which is almost impossible as a (non-expert) foreigner. The most important factor is the tax class and family status (you are most likely class I, as a single guy without kids), other factors are the state you live in, church membership and whether you have any tax-deductible items.
Contact a professional tax consultant - you'll need him/her anyways after your arrival (see below)!

downshifter wrote:

- Do you get the Net salary or do you have to pay some taxes by your own at the end of the year?


The Nett salary calculated above is just an estimation of your actual tax bill. After end of the year, you have to submit a tax declaration and the actual bill will be computed. In most cases you'll get some reimbursement. Preparing the tax declaration is difficult even for native speakers, so you should leave it to the abovementioned expert (for a fee, of course).

downshifter wrote:

- is there any fiscal incentive for people who relocate to Germany?


What do you mean?

downshifter wrote:

- what about house prices? The bracket in numbeo is large. I tried www.immobilienscout24.de and I have found 80mq for 640 euro in Krefeld, Uerdingen that seems too cheap from what I can understand


Rents (I assume you are not talking about buying prices here) are highly regional - you pay a lot more in big and popular cities (Duesseldorf is one of them) than elsewhere. What you save by living far from the city usually more than compensates for the cost of commute (but of course not for your time and the difference in lifestyle).
In addition, there is a wide range based on the amenities and shape of the property. You MUST view before you rent! (And take a German friend along to negotiate the contract details.)

Thanks for the reply. Well, taxes are complicated, I understand. My situation is pretty simple as I am single without children. I have a boyfriend will relocate with me and he'll try to find a normal job.
About fiscal incentives, some states provide tax deduction items for people moving from outside, that could last in higher reimbursement.

About salary, the company is a big state-owned company. The role is somewhat senior in the IT.

About level, I am not sure how job contract and contract level are managed in germany.

thanks anyway
S

If the move is job-related, I believe the moving costs (plus temporary accommodation and a daily allowance for the first three months) are tax-deductible, possibly leading to a higher reimbursement after the tax declaration. A tax consultant will be able to explain this better.

downshifter wrote:

Hi all,

in my quest to expat to the UK/Ireland I got an opportunity in Germany (Dusseldorf). I have some difficulties in making a comparison. For UK (London Area) I am dealing for a salary around 75/80k GBP/year gross. For this job in Dusseldorf the salary braket is 65/70k. Now, how can I interpret this salary? I mean, without considering seniority, sector, etc-

This is a good salary for a single person


- is normal to pay 12, 13 or 14 months?

12 - 14 months payment for what? the question is totally unclear.


- what about house prices? The bracket in numbeo is large. I tried www.immobilienscout24.de and I have found 80mq for 640 euro in Krefeld, Uerdingen that seems too cheap from what I can understand

Rents depend a lot on location. A nice neighborhoood in Düsseldorf will usually cost  more than an inconveniently located place in a nearby city. I don't know Krefeld but I see it is just 25 KM away and connected by public transportation. One would have to consider how they might want to commute to work and where they want to spend their free time to decide if such a place is worth the potential savings on rent. Another thing is to know if a rental price is "warm" or "cold" meaning including or not including utilities which can be a few hundred additional Euros.


S.

I would say 65-70k EUR in Düsseldorf is the equivalent of around 90k GBP in London, all things considered.

I have based this on the difference in rent, taxes, living costs.

Rent in DDorf is around €10-€12 per square metre for an OK apartment in a decent area, so a good sized 2 bedroom apartment be around €800 + bills. You'd be lucky to get a bedsit in the shittiest part of London for that.

There is no council tax in Germany. Utilities and municipal services such as garbage disposal and snow clearing are added to your rent by your landlord and you get a statement of account each year + or - which is settled.

Net vs. gross salary depends on quite a few variables i.e. would you be liable for church tax, would you take public or private health insurance? So the sites you used aren't inaccurate per se, they probably just used different assumptions. Work on about 58% net from your gross if you don't intend to pay church tax.

Living costs are considerably lower than London and SE England. About the same as Northern England.

More general info liveworkgermany.com/2017/03/what-is-the-average-cost-of-living-in-germany