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German taxes are killing me

Discussion in 'Business & Tax Advice' started by supermex, Sep 26, 2018.

  1. Mike_ross

    Mike_ross BANNED BANNED

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    Move to another place
     
  2. stupid answer, fake username, bad replies, retarded post count bump attempt
     
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  3. Skyrank

    Skyrank Registered Member

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    Estonia, Republic of Georgia, or certain US states.
     
  4. dhakaa786

    dhakaa786 Registered Member

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    Hey, how much earn per year. and which type of business you have
     
  5. bill90

    bill90 Junior Member

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    Following
     
  6. almir2015

    almir2015 Registered Member

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    Move your tax residence to Bulgaria, it's only 10% income tax there
     
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  7. graphys

    graphys Newbie

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    Get familiar with the "flag theory"...
     
  8. OffshoreSecrets

    OffshoreSecrets Newbie

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    This doesn't work. Without economic substance in Estonia, the German tax authorities will treat the Estonian OÜ as a German GmbH. (Außensteuergesetz)
     
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  9. OffshoreSecrets

    OffshoreSecrets Newbie

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    Puerto Rico is only a useful tip for US citizens, European Citizens have much better options than this.
     
  10. kinglion

    kinglion Jr. VIP Jr. VIP

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    Boy, me and my GmbH struggles with the same issue.
    I was paying several K to my Tax Consultant. This was driving me nuts. It is litteraly like paying extra taxes.

    You could contact a technical college or a university. They have to do internships again and again. (Especially in Bavaria). Then you just have a few interns who can do all the bookings for you.
    Your tax program can do the VAT pre-registration itself.
    This will save you a lot of money. I only use my tax consultant for consulting and no longer for bookkeeping or accounting.

    costs:
    interns: Free
     
  11. nakamura

    nakamura Elite Member

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    The german financial authorities are among the strictest in the world. I guess they are #2. Its really really easy for a german to become self-employee. I did it. Took me 2 hours until I got all the documents, then had to wait a few weeks for the letters from the financial authorities. Unfortunately at a specific point a self-employee has to set up a GmbH. And exactly at this point people are getting fucked with lots of burocracy and taxes. As a german who would want to save taxes I would recommend to change the place of living. Less trouble, less taxes, less burocracy.
     
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  12. OffshoreSecrets

    OffshoreSecrets Newbie

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    Absolutely. I went to Panama, but might move my tax residence to Cyprus in the future.
     
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  13. Heiko

    Heiko Jr. VIP Jr. VIP

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    Sadly, i have to confirm this. It's amongst of the highest tax countries and strictest. If you ever get behind your tax payment or do not make the deadline for a pay the "Finanzamt" charges you +5€ fee. I myself had this problem when the mail arrived late and i didn't know exactly what to pay. I paid it on the 9.06 and the deadline was the 10.06. Due to the delays in the bank the transfer was delayed 3 or 4 days, and on the 13.06 i already recieved a paper in the mail saying that i have to pay my taxes + 5€ because i didn't pay on the deadline, lol. On the other hand, when you need something from them, they'll take their good amount of time to process it and work on it.

    With the new taxes that are coming to Germany (CO2 Taxes, Streaming License,etc.) this country gets more and more difficult to live in as a self employed person. There are sure some legal ways to trick them and get a good return on your money, but it will never be as much as if you would move to a different country. Plus you save yourself a lot of hassle dealing with idiots.
     
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  14. SultanSultan

    SultanSultan Junior Member

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    Did you leave Germany? If yes, where are you living now? Moving permanently to another country is always easy to say, but man you miss your country after some time especially if it's a country like Germany. I speak from experience when I say that. :D
     
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  15. Heiko

    Heiko Jr. VIP Jr. VIP

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    Nope, i am still here in Germany. At the moment i can afford to live here, but i'm not sure how the future is gonna look for me. Definitely can agree with you on that, its not that easy if you have friends/family etc. here.
     
  16. Heiko

    Heiko Jr. VIP Jr. VIP

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    Any updates?
    @supermex @SultanSultan @nakamura

    I think the only way to truly get away from all taxes is to become a digital nomad and travel from country to country. Sigh..
     
  17. nakamura

    nakamura Elite Member

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    Yes, but even if you give up to life in Germany (Wohnsitz abmelden) and start to life the digital nomad lifestyle with a foreign company (for example HK) the german financial authorities can come after you if you ever go back to life in Germany. They will say "oh, where have you been? where did you pay taxes? No where? Then you will do it here now for the last few years you have been away" Basically need a proof of residence in another country and also that you paid taxes there. Many guys I know are going to Cyprus for living. Maybe thats a good alternative for European people.

    Before I wanted to incorporate in HK or Singapore, but since there is no double taxation agreement I would have to pay taxes in Germany and treat it like a GmbH. So a double taxation law is really important.
     
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  18. laur.laurix

    laur.laurix Senior Member

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    Ahh the perks of living in Romania..low taxes and cheap premium pussy..no personal tax because the state is incapable to collect it and 6% buisness tax.

    The downside is that we don't have good infrastructure, health system, education system and all our qualified work force is in Germany or other E.U country.

    So OP you decide where you want to live.
     
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  19. Sayros87

    Sayros87 Registered Member

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    I used to live in Iasi/ Romania before i moved back to Berlin and i cant agree more with what you said! But in Romania there are private health services / which are still cheap for someone who is coming from germany that you can use and enjoy a very good health care. Romanian surgeons are one of the best in Europe, so if you have money you are not missing anything in that sector at least, and honestly Romanian Ladies are in different league compared to the german one, they are way more feminine and less complicated, i spent about 3 years in Romania and it was one of the best periods in my life! i wish i could quit everything here in Berlin and move back.
     
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  20. nakamura

    nakamura Elite Member

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    Yes, it has some ups and downs in every country. From this perspective Romania might be much better. German financial authorities are one of the strictest in the world. Its kinda totalitarian...like normal german people are totally afraid of making any mistake when it comes to taxes etc. they piss their pants for a good reason. I also piss my pants. This whole tread is about pissing in the pants. Other countries aren't that strict. And its incredible hard to step out of this hamster pissing pants wheel.