Employment, Taxes, and Finance in Germany: what actually matters to know

From the German perspective, if the 'center of vital interests' remains in Germany, issues might be avoided. However, this arrangement can lead to significant tax residency complications in Russia, potentially resulting in loss of Russian tax residency benefits. Transferring salary from a German bank account to Russia can also be challenging. This setup is particularly complex for Russian citizens and may lead to legal and financial repercussions in both countries, especially concerning taxation and social security contributions.

Gross salaries of €3000-€3500 for experienced engineers might be considered moderate, with net income (after taxes and contributions) being considerably lower. Entry-level positions after Ausbildung often start with net salaries around €2000-€2500. Salaries tend to be higher in major cities like Munich, Frankfurt, and Hamburg, but so is the cost of living. Factors influencing salary include industry, company size, region, and individual qualifications, with language proficiency playing a notable role.

While savings are not taxed, their depletion can severely impact financial stability. German bureaucracy is known for long waiting times for appointments (e.g., 3 weeks for an appointment in a city of 200k), potential last-minute cancellations, and slow email responses from public offices (Ausländerbehörde). It's advised to have a clear financial plan beyond just savings.

Any income generated from Russian self-employment (e.g., rental income managed via self-employment status) must be declared in the German tax declaration. Based on user experience, this typically does not lead to complications or further inquiries from German tax authorities.

An individual becomes a tax resident of Germany upon employment and tax ID registration. If an individual spends less than 183 days in Russia within a calendar year, they lose their tax residency status in Russia. These statuses are not simultaneous for the entire year but are calculated based on the duration of stay in each jurisdiction.

Some municipalities (like Chemnitz mentioned here) levy a secondary residence tax (Zweitwohnsitzsteuer). If a person claims their main residence is in one city but their work is in another, authorities might investigate to ensure the declared 'center of vital interests' (Mittelpunkt der Lebensinteressen) is accurate to prevent tax evasion.