OBTAINING CITIZENSHIP IN GERMANY
Germany is known as the strongest economy in Europe and it is beneficial for both the business owner and the company to establish roots in the country. Obtaining citizenship in Germany is possible, but it is highly recommended to be done by specialists, due to the strict rules and regulations that need to be adhered to in each province of Germany. Intercompany Solutions will be able to assist you in this procedure so that you can focus on preparing yourself for the big move.
Obtaining a Germany citizenship is a practical procedure for entrepreneurs and investors.
Non-EU nationals – obligatory police registration
Non-EU nationals must follow the same process that EU citizens follow when moving to Germany. Registration will be made at residency offices in Germany and citizens will then be issued with a certificate of registration. The following documents are required: a valid EU passport or ID card, a completed registration form, and proof of residence.
Non-EU nationals – residence permit
There are several types of permits available for those who want to stay in the country on a short term or long term basis. The
is for temporary residents who would like to stay in the country for a short time to complete a specific purpose (studying, etc). The EU Blue Card is also short term but aimed at educated or skilled people. To obtain one you would need proof of an academic degree and earn a salary of at leat 46,600EUR. The
Niederlassungserlaubnis is the permanent residence permit and for this you need to meet the following requirements:
- have a minimum of 5 years’ permit.
- proof that you have been employed for 5 years and paid the relevant contributions to the German government.
- proof of ongoing financial support.
- proof of suitable accommodation.
- speak German.
- basic knowledge of German legal and social systems.
If you would like to apply for German citizenship, contact us today and we will be able to assist you in the procedure. Our friendly agents will also be able to give you more information about the German immigration process.
GERMANY TAX RESIDENCY:
Individuals living in Germany can either be classified as a residents or non-residents. The difference in the classification will influence the way you pay tax which is why it is important to take note of the rules and laws in Germany.
Resident for tax purposes
The way you are taxed and treated will depend on the ‘183-day rule’ in Germany. This rule is used in other EU countries as well. The rule states that you are automatically classified as a resident if you have been in the country for more than 183 days in a calendar year or for an average of 90 days in a 4-year period. Travelling days are excluded and only full days spent in the country are counted.
Non-resident for tax purposes
As a non-resident you are still subject to pay income tax on any money that you make within the country. You will also be placed in one of the tax brackets according to your total income. The tax rate may vary for a non-resident individual and you may take advantage of some of the social security benefits that the government has to offer.
Taxation in Germany
There are 6 classes that an individual as taxpayer falls into, each with different rates:
- Individuals who are single or separated, but who do not fall under categories 2 and 3
- Single and separated with a child, enabling them access to child’s allowance
- Married or widowed who are within the first year of a spouse’s death
- Married employees both receiving income
- Married persons who would normally fall in the above category, but whose spouse is classified in category 3
- Employees who receive income from other employment on one or more different tax cards
Higher tax payers may have to pay the solidarity surcharge of about 5.5% and employees may have to pay towards social security every month.
Social security benefits
Employees must, as a rule, make payments towards health insurance, long-range nursing care, pensions and unemployment. The employer usually pays half of this cost. Other aspects of the social security programme that can be contributed to are accident insurance and social indemnity.