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German taxes are killing me

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

  1. supermex

    supermex Jr. VIP Jr. VIP

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    I have accepted the fact that I have to pay taxes. Every time I pay my taxes it reminds me that I'm running a successful and profitable business. And I see it from the positive side, I can declare a lot of things I buy as company expenses + most of my short travel trips can count as business travel for which the company pays. So in the end I have way more "privileges " than a normal employee when it comes to taxes :D

    Seriously guys, focus on scaling your business and enjoy your life rather than worrying about taxes. IMHO it's not worth it.
     
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  2. nakamura

    nakamura Elite Member

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    Yes, thats a good way to accept the situation. But imagine this: You have the choice to stay wherever you want and pay even less to none taxes. What bothers me is how Germany is spending the taxes. Instead of using it for education for example, they are almost doubling the military budget to 80 billion. They sell it the normal people as "2% of the GDP", while they are about to introduce the "Co2 taxes" and increase the taxes for flights to earn even more tax money. Which is absolutely contradictive, because more military budget -> more production of weapons etc -> more use of weapons = bad for the environment. It simply doesn't make sense to me and its not something I want to participate with.

    I just don't see how things are going to change to the better. It only gets worse so far.

    Also when it comes to "business trips" the german financial authorities are extremely picky. Like you have to proof everything and they constantly question you. While with a HK or Cyprus company for xample you can just pay any flight, any rental car, Airbnbs, hotels, restaurant bills, etc. and no one is going to ask questions.

    95% of the people in Germany who are running a business have no other choice. They have to stay in Germany, because their business is located there, because of the business partners etc. are there, but for IM it doesn't matter. It doesn't matter if you sit in a office in Berlin or Munich or if you lay on the beach on Bali or Australia. This is the biggest privilege you can have, because this is pure freedom and everyone who got this privilege should make use of it....and by the way it can save you tons of money. Just think about it: If you earn a lot in Germany you'll have to pay more than 40% income taxes. In other words: You are working 5 months of the year only to pay taxes. Think about this for a second. I don't even want to count all the other taxes for oil, gas, electricity, VAT, flights etc. it will be easily 70% per month.
     
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  3. ExperimentalSEO

    ExperimentalSEO Junior Member

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    The money lost from paying high taxes adds up over time and the more you earn the more you lose. At just 100K Euros a year income the difference between Germany and Bulgaria over a period of 30 years will be 1.5 million Euros with conservative investments.
     
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  4. feIix

    feIix Regular Member

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    If you are unhappy with the taxes, leave the country.

    People just see what they pay, but never what they receive.

    Infrastructure, social security system, working police and hospitals, constitutional state...
     
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  5. Sayros87

    Sayros87 Newbie

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    Do us a favor Felix and leave your patriotism somewhere else, having a VIP membership and being german does not give you the right to advise others to leave your country, OP and others are free to complain , make discussions and live wherever they want without getting such harsh advises , and by the way, Infrastructure and services you mentioned are even better in Switzerland , and still you would not pay the amount of taxes you are paying in germany , so yes some people see what they receive , appreciate what they receive and still can criticize some aspects and compare it to other possibilities
     
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  6. SultanSultan

    SultanSultan Registered Member

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    Can somebody tell me how exactly the 183 day rule for tax residency works? I'm lucky to have a citizenship of a somewhat tax-friendlier country next to my German citizenship, so I could live and register a company there but do I still have to pay taxes in Germany if I don't stay here for more than 183 days a year?
     
  7. Sayros87

    Sayros87 Newbie

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    Sultan, I guess the best thing you can do is to ask your Tax Adviser, the system is complex and there are many rules involved, ask professionals to avoid mistakes
     
  8. feIix

    feIix Regular Member

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    It's not about patriotism or having a VIP membership (lol?). Probably you should leave this thread when you are that unobjective and argue on a non-factual level.
     
  9. nakamura

    nakamura Elite Member

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    If you live in a country longer than 183 days you will have to pay taxes there. This can be bad, but also good (if the country is a low tax country).

    you will need to deregister from your country. So when I live in Germany normally I have to go to the governmental building and tell them “i will leave germany” and get some official papers.

    in Cyprus its 60 or 70 days if I remember right. You have to stay there two months per year to pay the taxes. The taxes there are low.
     
  10. Sayros87

    Sayros87 Newbie

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    Well i did mention facts , but again you have the same approach advising me to leave the thread ,lol. but ok im not here to argue with you, you are right.
     
  11. OffshoreSecrets

    OffshoreSecrets Newbie

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    You can become a tax resident in Cyprus with just 60 days spent in the country, given certain conditions.

    For example you need to rent a place long-term (several people can share an apartment for the residency).
    You need to either be employed by or own a Cyprus company.

    Also often it requires restructuring to make the most of the specific tax laws.

    But definitely an option that makes sense for many people, especially if you already have a successful business in the EU, and need to avoid exit tax.
     
  12. Evolzation

    Evolzation Junior Member

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    At least you have a country that is working and a lot of your money keep things going and not 70% going to corruption. I live in
    South Africa and nothing works here.
     
  13. Kevinpro

    Kevinpro Regular Member

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    I dont care about texas. Because Pakistan is very richest country in this world. Google it about Pakistan texas :anyway:
     
  14. feIix

    feIix Regular Member

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    Oh dear, you were the one telling me to leave the thread. Saying I'm a patriot and having VIP is not mentioning facts.

    Looks like you are unhappy with your life and with that attitude you don't need to worry about paying taxes, because you won't have success running your business.

    Back 2 topic:

    If the taxes are too high, just setup some european holding construct and you can push your tax rate close to 0.
     
  15. Welkroo

    Welkroo Regular Member

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    What about moving your business in Luxembourg. It‘s situated next to Germany and the taxes are much lower. I am living in Germany too and working in Luxembourg...
     
  16. SirLouen

    SirLouen Jr. VIP Jr. VIP

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    In Spain, we pay 300€/mo just for the sake of being a Freelancer. You earn 0€? You pay 300€. You lose 10K€ one year? Don't worry: Pay 300x12 = 3600€ for being Freelancer over those 10K€

    Amazing.
     
  17. Akuchi

    Akuchi Jr. VIP Jr. VIP

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    Taxes in the US are so much cheaper than Canada - that's for sure. So glad to be going back to the states soon. :)

    I'm jealous of the low taxes in some countries but I have a higher standard of living and can't do no A/C, bad roads, and poor healthcare. Vietnam was one example of that.
     
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  18. TeslaFan

    TeslaFan Regular Member

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    From what I understand millions who are connected need you to pay for them. Maybe I'm wrong that was my understanding you have to pay so you have to work and give.
     
  19. ActaNonVerba

    ActaNonVerba Registered Member

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    I do not want to get too political here but you shouldn't worry about the military spending budget. It's on the low side, equipment is rusty and faulty. You would be shocked to see how bad the state of the German (and Dutch) army is. What you should worry about though is the money going to foreign nations and the large influx of refugees who are prioritized over domestic citizens.

    Now, to be on-topic, I suggest you register yourself in Hungary. Something I've done recently. I pay 9% corporate tax. I also have to rent a small studio which costs me several hundred euros and where I practically never stay, but in the end it's worth it.
     
  20. Loxo

    Loxo Regular Member

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    This is happening in almost every country in Europe, even non EU countries. It would be nice to go deeper in what is that doing to country economy but unfortunately it would be probably be considered politics....