My sister is moving to Germany; any advice?

[ksbsnowowl]

So my sister just had an interview today with a German early childhood care center, and they immediately offered her a job.  The center is hiring native English speakers for an immersion environment wherein the children learn English in a similar fashion to someone growing up in a bi-lingual household.

So, in a month my sister will be moving from the good ol' USA to Munich.  Any helpful advice anyone from Germany, or with experience working in a second country, can offer?

Current items of interest include:

• Does she still need to file US taxes? (Not counting this year - she'll obviously need to do that)
• Can she contribute to a Roth IRA if she doesn't work in the US?
• How is healthcare dealt with in Germany (my understanding is that it is not offered through one's employer)?

Any other helpful bits of info for an American working in Germany would be greatfully appreciated.

[Omen of Peace]

1) She will probably need to file. But the details depend on the tax treaties* between the USA and Germany... I recommend consulting a tax accountant when the time comes.
*typically they let you avoid paying taxes twice

3) I think so too, but it is best to ask... her employer.

[Tshern]

Give me a few days and I can probably get an extensive explanation about the healthcare part. I know some Germans and I bet they are more than happy to help in this.

[altpersona]

1 : dont take advice from strangers on the interweb.
2 : when taking advice from strangers on the interweb, use the following set of questions to asses the quality of the advice.
   a. am i nuts?

3 ; when talking to news reporters, law officials, or clergy omit the details about taking advice from strangers on the interweb.   

[ksbsnowowl]

1 : dont take advice from strangers on the interweb.
2 : when taking advice from strangers on the interweb, use the following set of questions to asses the quality of the advice.
   a. am i nuts?

3 ; when talking to news reporters, law officials, or clergy omit the details about taking advice from strangers on the interweb.   

I realize that I'm not getting ironclad legal advice.  I'm just looking for advice from others' experiences.  I want her to have an idea what she's facing when she does get actual professional advice.

Thanks Omen and Tshern.

[altpersona]

1. you still file your taxs, but they can get complex.
2. you can contribute to a roth, the source of the money is not overly important, but you may have to do it manually.
3. no idea

[Runestar]

If I am not wrong, US should have a tax treaty with Germany which exempts you from US tax on any income you earn in Germany. But you better confirm with a professional.

Not sure about the rest.

[altpersona]

your not going to double pay, but im pretty sure you still have to file.

[Ieniemienie]

You might want to check the German Tax Treaty Documents

[Josh]

your not going to double pay, but im pretty sure you still have to file.

You may actually have to double pay.  My boss at one point had to leave England on an emergency basis to avoid having to file taxes in England.  The good news is that the company will have to file boatloads of paperwork to hire her and they will know what she needs.

[Omen of Peace]

You might want to check the German Tax Treaty Documents

Trying to navigate those by yourself leads you straight to insanity. I tried it 2 years ago (France-USA treaties) *shudder* and I gave up in frustration after a few hours.

[Rev]

The one big thing I'll mention about working in Germany is their taxes may be much much higher than she's used to.

One of my mates is moving back to a job their next year and has had to scale up the salary he requested by about 15% to compensate for the large tax cost.

[SixthDeclension]

You might want to check the German Tax Treaty Documents

Trying to navigate those by yourself leads you straight to insanity. I tried it 2 years ago (France-USA treaties) *shudder* and I gave up in frustration after a few hours.

What I'm getting from them is that double-taxing is not likely except for some circumstances and that you can go to Germany to escape child-support payments. But I could be wrong. I am a lot. 

[katans]

Hi there, maybe I can help a bit. First thing to do is contact the US embassy in Munich, they can answer all your questions. But for a quick help, here it goes...

1) If your sister is employed by a german company (not by a US company sending her abroad) then she will pay her taxes in Germany, not in the US. No double taxing AFAIK.

2) Uh... what?

3) Having a job (or for the less lucky, being registered as unemployed) grants access to the public healthcare system. Simply pick up one of Germany's main public healthcare companies (such as the AOK or TK... your employer can certainly recommend one) and register. You will need proof of your adress in Germany and your employment. Healthcare fees are removed from your loan automatically every month. You also have to pay the 10 € "Praxisgebühr" (office fee) every three months if you actually visit the doc.
German public healthcare is among the world's best ones and provides access to a wide variety of services. You will have a "reference" doctor for the everyday stuff; for specialized physicists you have to pick first an "authorization" from your reference practitioner (exception to this rule are gynaecologists and ophtalmologists, you can visit those freely). It's a mere formality and dispends you from paying the "Praxisgebühr" twice in the same quarter.

[Smiles55]

Ask if that company has an HR department that will go over these details so she can focus on her travel, ask if they provide a lawyer or legal secretary (1/4 cost typically ) that we ensure that all is good, ask the US tax people what forms will be required as well as how long she can work abroad before she needs to return to American soil (sorry assumption that your USA ) Tax wise will it be better for her to start a company that works for the German company which she is the consultant??  May provide tax breaks or benefits.

[yellowdingo]

Get a spot on Inspector Rex...

[Tshern]

Sorry KSB, I still haven't tracked down the Germans yet. From what I heard one of them moved to Canada two weeks ago and one is enjoying her well-deserved holidays in the eastern parts of Asia...

[ksbsnowowl]

No worries.  This is just one avenue of helping the sis with info.  She's doing a lot on her own too.

[Tshern]

I bet she is. Relying on an internet forum would be perhaps the stupidest thing to do apart from asking help from a bunch Italians (no offense). I'll still try to reach them if humanly possible, but travelling to Canada or sending letters to China is not within those limits.

[BowenSilverclaw]

Get a spot on Inspector Rex...

Sorry to burst your bubble, but Komissar Rex is an austrian show
And from what I heard the new season will be austrian/italian since Rex will move to Rome

[/off topic]

~Bowen