Financial Planning for Expats Moving to Germany

May 31, 2023 | Blog, Home & Relocation

Financial planning for expats is key when moving to Germany, it can be a rewarding experience, but it requires careful finance planning and an understanding of the local systems. Chris Everitt from Horbach Wirtschaftsberatung GmbH, one of Germany’s largest independent financial advisories outlines essential financial advice in this blog post, to help you navigate the economic landscape with confidence and make the most of your time in Germany. Chris is a seasoned expat himself, having lived and worked in several countries over the course of his 20 years in financial services.

Moving to Germany: Navigating Financial Requirements


Moving to a new country can be an exciting adventure, but it also comes with its fair share of challenges. Germany, with its robust economy and high standard of living, is a popular destination for expatriates seeking new opportunities. However, navigating the financial landscape in a foreign land can be daunting. In this blog post, we will provide essential financial advice to help expats settle in Germany and make informed decisions about their finances. 


1. Understand the tax system

Germany has a progressive tax system, and it is crucial for expats to familiarize themselves with its intricacies. All residents must register with the local tax office (Finanzamt). Determine your tax status, as it affects how much tax you pay. Consulting with a tax advisor or specialist can help you optimize your tax situation and ensure compliance with German tax laws. 

2. Open a bank account

Having a German bank account is essential for managing your finances efficiently. Research different banks to find the one that suits your needs.  Look for banks that offer English-speaking services and provide online banking options. In addition, having a German bank account will facilitate payment of bills,  rent, and other transactions within the country. 


Financial Planning Expats Moving to Germany

3. Health insurance

Germany has a comprehensive healthcare system, and health insurance is mandatory for all residents. Expats should enrol in public health insurance (gesetzliche Krankenversicherung) or opt for private health insurance,  depending on their circumstances. Public health insurance is generally more cost-effective, while private insurance offers additional benefits and flexibility. Research the options and choose the one that suits your needs best.

4. Retirement planning

It is never too early to start planning for retirement. Germany offers a state pension system, but it may not be sufficient to maintain your desired standard of living. Consider exploring private pension schemes or retirement savings plans to supplement your income during retirement. Seek advice from financial advisors who specialize in expat finances to understand the options available to you.

5. Understand the cost of living

The cost of living in Germany varies depending on the city or region. Research and understand the average costs of housing, transportation, groceries, healthcare, and other essential expenses in your chosen location. This knowledge will help you budget effectively and make informed decisions about your lifestyle and expenditure. 

Financial Cost of living Germany

6. Consider currency exchange

If you are receiving income from abroad or need to transfer funds back home, it is essential to consider currency exchange rates and fees. Research various currency exchange providers to find competitive rates and low transaction fees. Online platforms and dedicated foreign exchange companies often offer better rates than traditional banks. 

7. Cultural Differences and Financial Etiquette

Familiarize yourself with the financial etiquette and cultural norms in Germany. For instance, cash is widely used for smaller transactions, but debit cards are generally accepted. Germans tend to prioritize savings and financial stability, so budgeting and saving should be an integral part of your financial plan. Understanding these cultural nuances will help you integrate better and manage your finances effectively. 

For personalised financial advice tailored to your exact needs, or help with any of the above points, please get in touch with Chris Everitt. You can book a no-charge appointment directly with Chris here  or contact him by email: 

Read more on our blog about Relocating to France, Spain, Italy and Germany

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