How to found a company in Germany: 14 "easy" steps and lots of pain
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Just last week, I was telling people that the best way to get married in Germany is to get married in Denmark.
I cannot overstate how terrible German bureaucracy is, and how defeating it is to deal with it. A lot of people give up and leave the country over it.
If you've experienced anything like a modern bureaucracy, Germany is infuriatingly backwards. The article is painfully accurate down to the minute detail.
Germany is not at the cutting edge, but it is far from the worse. The interactions I have had with bureaucratic systems in Thüringen have all been entirely fine. Friendly people, clear process, done quickly. Obviously that is only an n=1. It is a rural area that is not overloaded as Berlin is.
Which country would you consider "modern"? My experiences:
In the UK the way you prove who you are is literally a physical copy of your water bill.
Spain, some things work well enough, others are insane.
US, massive variability from state to state and government department.
- The requirements are arbitrary, undocumented, and largely depend on how the case worker feels on a given day. Common wisdom is to bring far more documents than asked for, just in case.
- Everything is paper-based. You are expected to act as a transport layer between offices that won't talk to each other. Everything is mailed, because digital communications are distrusted and digitalisation lagging far behind.
- Everything takes far longer than it should, partly due to the above, and due to chronic understaffing of government offices.
This is a problem in all major cities, and many of the smaller ones. In this case, n is a pretty big number backed by the many relocation consultants I work with. You got lucky, and I envy you.
My complaint is simply people imagining it is perfect elsewhere. Really that is not the case, no where is perfect. All the people chiming in about the US being so easy, yes, wonderful. Now let's talk about healthcare and how your health insurance is tied to your employer. Everyone who is extolling how simple the UK is, that's lovely. What a shame about brexit though.
The point is there are major pains absolutely everywhere.
The thing with bureaucracy is that it's part of normal life, there's no way around it. You can assume there's a 20% chance you'd get laid off in the US and that it would be bad, but there's a 100% chance you'll have to get a work or residence permit or something else in Germany, and it seems that the default is a painful process (reading the comments here).
> The point is there are major pains absolutely everywhere.
There are still places such as Switzerland where things are better though.
> I don’t have health care
Are you based in the US? How is this possible? I thought it is a requirement to have healthcare now.You can try to argue that the fine is a mandate, but many people found that it was much cheaper to just pay the fine than to buy insurance coverage. Of course, this means they have no health insurance coverage which obviously has big risks, but for many people, the only insurance plans they had access to were literally unaffordable (i.e., higher than their rent, so it was a choice between having a place to live, or having health insurance with a high deductible and copays).
I've never founded a company in Switzerland but it didn't seem that hard, talking with people who did. As an individual most of the things I've had to do (residence permit, taxes...) are also quite straightforward.
Individual interactions with the government are also frustratingly bureaucratic. The prevalence of fetch quests is a lowlight. Different departments don't talk to each other, maybe they think email is insecure or something, or maybe because every interaction with the government comes with a 30-90CHF+ fee. So I often find myself manually schlepping rubber-stamped documents from one part of the canton to another and paying for the privilege, something that is much better done by computers. A whole set of processes work like this and must be wide open to fraud.
Sometimes departments even expect you to send memos around to themselves. An example of one recent interaction that typifies the whole experience (loosely translated to English):
Clerk: You're late, you will have to pay a 50 CHF fine.
Me: <checks watch> I'm right on time and have been waiting to be called forward for 15 minutes.
Clerk: You were supposed to come within two weeks of the invitation, which was sent 3.5 weeks ago.
Me: I booked this appointment on the same day I received the invitation, which was also the same day it was sent. And today was the first available appointment slot.
Clerk: It says here on your invitation <gestures to fine print> that if you can't come within two weeks, you have to write us a letter to tell us why not.
Me: Ahhmmm.... to double check I'm not misunderstanding this, you expected me to write you a letter informing you your own calendar is full, a fact you already knew? And now you're fining me for not doing that?
Clerk: Yes. Will that be card or cash?
My wife went through something very similar in the last couple of years where her permit expired during COVID because she couldn't get the bureaucracy to pay any attention. She filled out the forms on time, was told to wait. She phoned them, was told her case was in progress, COVID delays etc and she should wait. Eventually she told me about this, we went to the office in person and was informed there was no record of any such interactions and she wasn't even in the system at all. Clerk acted like this was clearly our fault. I told the clerk to please make a record of the fact we'd been there and tried to resolve the situation in person, "I don't have permission to make notes on her file". OK, maybe that's why there are no records of previous interactions then? "Can't say". After that I decided that from now on every interaction is via registered mail. Make them think we're collecting evidence for a legal dispute. Things were suddenly resolved.
I'd love to say the above were unusual but it's really not. Every interaction with the Swiss government I've had tends to be like this if it isn't already digitized: it will be slow, it will be expensive, and it will contain at least one infuriatingly unreasonable gotcha that makes it even slower and more expensive. If a process is digitized on the other hand then it's going to be much better, Switzerland seems to have pretty competent government IT overall (when it exists).
Worse still, if a german says fuck it and wants to run his business in Estonia, the org still has to pay taxes in germany
The only silver lining to all this are Spaniards, Greeks, etc say the system here is better than in their country, but I think you should strive to benchmark up and not down
Why? Doesn't Germany have treaties with Estonia to avoid double taxation?
Outside Europe: Canada, Hong Kong, Singapore is better than Germany.
What wasn't fair before and what makes it more fair now for non-EU people?
Perfect is the enemy of good.
In Finland I can't remember the last time I filled a paper form for anything. And I've gotten new debit and credit cards, opened bank and stock holding accounts for me and my family, renewed _very_ expired passports, applied for multiple loans (200k€+), started a company and worked with medical services (recipes, doctor appointments)
The only things that required physical presence were getting my kid's first debit card and fetching the passports, everything else was fully digital and remote.
Everything is digital/easy here and has been it for a long time. Old people can still get a waiver to get government snailmail instead of secure digital mail though.
A part of the argument for Brexit was to enable simplifications of bureaucracy (obviously not for the specific case of someone in the EU migrating there, but for everything else). So that's not necessarily a great argument.
It hasn't been capitalized on to any great extent yet because the current government is weak and spent most of the time distracted by COVID. But the potential for simplification is actually there now, whereas previously it was often blocked by EU law.
This opportunity was sadly squandered due to populism (and Steve Bannon's Cambridge Analytica financed by Rob Mercer), with the result that now tons of migration from India and other Asian places is arranged to fill the gaps that the European workers that left created.
So let's see how life will be at the front doorstop of the EU of which it isn't a member anymore, say, in 10 year's time, compared to how it was 2016. From what my journalist friends are telling me, for once food theft has skyrocketed, because many cannot pay their grocery bills.
Informal/reasonable interpretations of EU law don't work. To even bring that up as an idea shows the culture gap that drove the UK out. The culture in Britain is incompatible with that. What happens is activists go to the ECJ and get a ruling that's unreasonable but formal, which the UK civil service (which likes clear rules) then goes ahead and implements strictly whilst other countries with different cultures would just ignore the rules. This process was called "gold plating". The result was the UK would end up with the worst possible outcome: a reputation for fighting against bad rules and being generally disagreeable/uncooperative, but then actually enforcing those rules when they pass anyway. The approach used by many other EU countries was to all agree on how wonderful the new rules were and then widely flout them, hence why obscure topics like fishing took on surprising prominence in the Brexit debates, the flouting of those rules was a long term and neuralgic issue that typified the problem.
Ten years from 2016 is only two years from now. There won't be any big changes in two years. The UK economy has closely tracked the rest of Europe and isn't doing any worse post-Brexit than other countries, or even sometimes slightly better (nothing to write home about compared to the USA of course, though how much that's due to US deficit spending is open to question).
> From what my journalist friends are telling me
Journalists?! They are widely distrusted for good reasons! You certainly shouldn't be learning anything about Brexit from them, they will happily say all kinds of nonsense that isn't true to try and defend the EU.
Years of derision of Greece and its processes and bureaucracy, vindicated... by having the same problems!
My favorite Berlin anecdote is when my wife (then girlfriend) and I first arrived in Germany, she was unemployed for the better part of a year as no-one would give her a chance. She actually got quite depressed about it, and reached out about state sponsored integration courses as the language lessons she was taking were expensive and she wanted to do something more holistic. The authorities told her in no uncertain terms that they didn't care and that there were no places available.
My biggest bugbear with Germany is that the state intrudes extensively in your affairs, most of the time they are being benevolent but that intrusion brings in a tremendous amount a bureaucratic baggage. And that baggage is slow, paper based, and becomes a significant barrier for doing anything. In many countries the kind of paperwork you have to slave over here just doesn't exist in the first place.
FWIW my wife and I got married in Denmark. It was impossible for my wife to provide an up-to-date (less than six months old) translated copy of her Chinese birth certificate. Theoretically she could have traveled back to china (in the middle of the pandemic) and begged her backwaters local police authority to print a new copy but they weren't obliged to issue her one. Denmark was happy with her passport and some declarations from the local authorities in Germany.
Some days I really wonder why I continue to put up with the hassle, probably just sunk cost at this point and stubbornness. Wouldn't recommend Germany for anyone with a low frustration tolerance.
I'm sure the local governments know it's a good source of tourist money though, hotels, restaurants and so on.
Honestly, as a native German this anecdote rather sounds like your girlfriend saw the good side of the German bureacracy (and life) (you likely haven't seen the bad side ... ;-) ): the girlfriend asked for something and got a direct honest answer. This is German directness, which I would rather consider a German virtue, but often confuses people from other countries where answers tend to be more sugar-coated.
In rest of the world, the behavior of being "direct" only when there's no negative consequence is just called being a jerk.
No the point is my wife was struggling, and she asked for help integrating, and the state refused to help her integrate. Even as a hardcore capitalist you should be in favor of getting immigrants into the labor market ASAP.
The irony is that fifteen years ago when she was a new immigrant to Australia, the state sponsored TAFE system was amazing for her, taught her English, and totally turned her life around.
I find this hilarious. It's the same in France, you need an up to date "original" of your birth certificate. But why? It's just saying you (full names) were born in XXX on a specific date. There's nothing about it that could change, really. In the country I'm from, your parents get one original on birth, and you can ask for copies from the town hall. But in France multiple administrations were extremely bothered that they weren't "original" (because they say DUPLICATA on them, and in French you get a shitty A4 with a stamped signature one can print at home, but they insist on an original) and weren't in French.
As a new world Australian, the fact this remains in force is completely insane. In Australia the authorities can trivially query the birth and deaths register to verify the validity of certificates.
In Germanys defense, centralized registries were used by the Nazi regime to facilitate the Holocaust.
Anyway Biometric passports/ids pretty much completely supersede this use-case and can be as equally decentralized.
Those are already in place in France, but some administrations still ask for a paper original (or scan of original) of your birth certificate. However some others have implemented some government-backed scheme where it automatically fetches your birth records from a government source (idk how it works behind the scenes) and it just works.
It was the same with a proof of where you live, it had to a be a bill in your name for electricity or something similar, but now it can just query popular sources such as the main electricity provider and just work.
If I told you the only way to deal with the Canadian government is bribes, would you believe me? Then why do you believe it when talking about equally advanced countries?
> Eastern Europe is harder
Estonia, Latvia, and Lithuania? I doubt it.Japanese bureaucracy has a bad rap, but it isn't that bad. There's still paperwork (not much has moved online) but the public servant staff are super helpful and guide you through things and are helpful when there is some blocker. Especially in the past 3-5 years there have big improvements with a lot of paperwork and stuff that required your personal seal has been removed, and the MyNumber card makes doing anything online very easy. I've never ever had to fax anything as people joke about (and a friend in Germany actually had to do)
In my experience, ZA bureaucracy is simpler than e.g. Germany or Greece, but general operational incompetence and corruption makes it just as slow. It's a tradeoff of more easily understanding what you have to do, but you'll have to sit in a queue for 6 hours and hope they don't tell you "the system is offline".
The closest thing to legal bribery is to go through specialist firms that deal with the bureaucracy for you, for a fee. This is also much faster as they know who's who within each department to get things done faster.
I've had friends request old documents only to learn 8 months later that the archival facility burnt down a few years ago so they don't know what documents they do or don't have. Ask a firm to do it, pay a couple thousand Rand, and they'll get it done within 3 weeks.
Since then Germany is trending down and Eastern Europe is trending up - and bureaucracy along with it. Digitization, customer friendliness, you name.
Even some random office in Serbia seems more pleasant than dealing with Germany.
Germany is trending towards becoming a has-been, like the UK (with the difference that in the current geopolitical context it's even proving to be an obstacle).
Every single one of those things is better in my new European home.
- CDU, which is politically the closest to the Republicans, is by far the strongest party now
- AFD, actual Neo-Nazis, are the second strongest party in recent polls
- East Germany is basically a giant No-Go area for PoC, with a couple of exceptions.
- The US Republican Party is far right and going farther. The Democratic party is also on the right. There are basically zero federal politicians on the left, the best you can get is basically center.
- We had an attack on our federal capitol building three years ago by white supremacists. Nazis carrying flags with the hakenkreuz marched on the Tennessee state capitol about six weeks ago. The number of groups like this is rising swiftly, even the police are in on it.
- We have done very little to stop this, we even had our previous president praising them. It's an embarrassment to our country, honestly. We were so proud to have beaten the Axis powers in WWII - and now we're going down the same path.
Having British roots attracts pressure from the locals. Ironically enough, given the countries' origin.
I live in the EU and I used to live in USA for a while so I am always looking for similar experiences and comparisons.
Thanks again!
For me (and I didn't fully appreciate this until I moved here) there is an incredible amount of mental overhead in the US.
Questions you don't have to ask yourself in Germany:
- What happens if I get very sick? Do I have enough savings for cancer?
- What happens if I lose my job? Do I have enough savings to get by if my job fires me?
- What happens if something happens to ny car? How will I get to work? How will I get my groceries?
- What happens if someone has a gun in this crowd? How will I get out? How can I protect people? Is that sound just a car backfiring or is that a gunshot?
- Am I saving enough for retirement? How will I get healthcare when I'm old? How do stocks in my retirement account work? Is this person trying to help me retire or trying to make money off of me?
Naturally most of these problems can be resolved with enough money.And you can have a comfortable life in the USA with enough money. And if we're being honest there are European counties that struggle with similar but maybe not all at once.
There are many things I miss about the US, and maybe someday I'll return. But there is much less financial/life planning related stress for me here
- If I call the police, will they help? Will they help me? Many people I know are SCARED by the police when they're just minding their business, which I'd say indicates something wrong. We nearly had a civil war in 2020 over police killings. - Very little walking or biking infrastructure. Very long distances between commercial and residential areas too. Even trying to be environmentally friendly feels pointless sometimes when you have to drive 10 or 20 minutes just to go to a recycling center. - Workers' rights are a joke in the US. OSHA regulations are only followed after someone gets a bad enough injury. Good luck getting any compensation for that too, the phrase "worker's comp" is a joke all by itself. - The cost of secondary education is ridiculous. I have loans from college, as do most of my friends, and we've been paying those of and will be paying for years to come.
You're very much correct that some or all of these can be resolved with enough money. But even for someone with the cash and connections to make such a drastic and expensive move, it's a lot. I'm sure as time goes on I will find more examples.
As I said, I was hoping for more personal experiences like "this happened to me so I decided to leave" than just perceptions and perceived fears which can be too easily influenced or biased. I can understand how they add up and create stress but so does flying for a lot of people - while being one of the safest modes of transportation.
For example, going to the US, my main fear was violence, and more specific gun violence and terrorism. Luckily I never encountered either, even if there were quite a few shootings and even 9/11! during my very stay. Today I'd just say these are statistically insignificant events (as horrifying as they are).
Secondly I was terrified of losing my job - with everything it entailed, especially my work visa. And I did get fired, eventually. Luckily the whole thing went swimmingly, with COBRA & severance pay picking up the slack during a short search and my next company continuing my visa sponsorship.
I was also afraid of cops (thanks, Hollywood!) but all encounters I actually had (noise complaints during parties and traffic stops) were quite amusing & polite.
In the end I had an amazing, positive experience living in the USA and it also helped me appreciate and understand Europe better. After all the years living in the EU now I could write a whole lot more about the horrors here (corruption, bureaucracy and the Russian threat easily come to mind) but that's not the topic and I am too old to believe there is a perfect place for everybody. Each choice is personal and it's composed from countless subjective, even subconscious factors - so good luck with yours!
Then again, anything like this is a stereotype.
Germans are (rather) efficient. The German bureacracy isn't. :-)
EDIT: But to give more evidence for my claim: violent attacks against government clerks are more and more increasing. I will just post two articles (in German), but it is easy to find many such articles:
> https://www.faz.net/aktuell/rhein-main/attacken-auf-amtstrae...
> https://www.swr.de/swraktuell/baden-wuerttemberg/heilbronn/a...
I know this sound stupid, but here's the reality: for the most part, those regulations aren't in place because people love bureacracy. They are there to enforce laws and implement measures that the people demand. They don't directly demand them, but whenever the government announces anything, people complain. They either complain that somebody is getting something they feel like they don't deserve, or they complain that they aren't getting something.
And because Germans love Bürgerbegehren and suing almost as much as they love complaining, everything has to be checked three times before anybody gets anything.
They're eficient at creating more bureaucracy as a universal solution to all problems.
Having dealt with Germany I have come to realize that excessive bureaucracy is basically a jobs program and a way for people to cover their ass whenever the shit hits the fan.
Something goes wrong and you're the big boss? Add more bureaucracy as your attempt to "fix" the problem and your justification to why your job is valuable to the company.
Something goes wrong on your watch? It's not your fault if you followed all the bureaucracy conjure by your bosses.
Never ever confuse Germans with the German government (except if you are looking for trouble :-) ). It is well-known that what are "lawyer jokes" in the USA are "politicians jokes" in Germany.
1. German companies are equally as bureaucratic because the people and society in general are culturally so into it.
2. German government is formed by German people voted by other German people, they aren't ruled by some aliens that came from of the sky, therefore are representative for them.
Fear of the boss to be caught with a error on his (hence he adds more bureaucracy), fear of the general public to look racist (hence low policing in high crime area with many foreigners), fear of the case worker to get sued (hence applying the rules literally, to the detriment of the applicant),.etc
This literally applies to big orgs as well with red tape, etc
France also seemed further along digitizing things.
Total duration is probably still a tie: it's all over the map but things can take ages in either country.
The Netherlands is great, except when it isn't. If you ever get stuck there, you have no chance convincing anyone. Their believe they have the best (civil) service doesn't help, but it turns out its all highly optimized for 'normal' Dutch citizens. As soon as your deviations from that norm start to add up, you're going to run into unhandled edge cases, which people won't handle (no protocol, and they are not used to using their own brain). "Computer says no" is Dutch (civil) service in a nutshell.
I remember not being able to create an account because the website password validation regex was buggy, I wrote an email about it and it's probably still not fixed. I've had to read the "compiled" js of the website to understand what was wrong to begin with.
I've had administrative processes slightly deviate from the happy path and getting stuck. When you talk to a human now. it's sorry can't do anything it's all online even when you explain that yes you tried other possible contact channels phone,email,in person, etc (email seems to go to /dev/null or get a canned response that clearly didn't read your message).
"Computer says no" is more and more of a thing now here in france. it's faster when you on the common happy path but if you aren't you better pray. Also the different services still seem unable to talk to each other even when they are in the same building / same administration but different department. Hopefully they'll improve that in 20 years.
Highly optimized for the happy path, which of course does cover 99% of cases, but you better not be in the 1% :) That's what I liked about France: nobody expects you to be normal, so everybody is used to working around systems. For the Dutch (and Germans), systems are sacred, and if they don't work, it must be you!
Edit:spelling and clarification on intake
Also if I remember at Tergooi MC you needed to register in their system anyways before an appointment. In the past they issued a little plastic card at the very same booth.
Inside the hospital itself you should be fine with an EU ID card or a passport, I don't think they specifically need a Dutch ID.
The Administration is particularly bad. Most of the time, they're understaffed and digital infrastructure is completely lacking most of the places. Then, in many cases, there is also a ping-pong in terms of responsibilities. Sometimes your stuff is bouncing between different levels of administration (thank you federalism) and sometimes its between different departments. Its not unheard of that you have to provide the same data in different forms for the different departments working for the same agency.
The amount of time I have spend waiting in line to do something as simple as renewing my Perso (national ID) or requesting a passport. When I moved two years ago, I spent 4 hours waiting in line to sign a form stating that I moved here. Waiting for the passport was a similar waiting game (and that is as a German-born citizen, I can't begin to imagine how bad it is when you're also concerned with residency and visa stuff).
German companies love to complain about the bureaucracy of the government, but are effectively replicating that same bureaucracy without any need.
So no, most interactions aren't efficient unfortunately
But all of this is just child play compared to how easy things are in China in terms of settle down (based on the experience of someone who has a job with a local company). I am tired of the pretentious western europe politics/administration point of view that immediately ranks everything (including good ideas) coming from Asia/global South as "not transposable to Europe" or just "not as good as our ways".
_I am tired of the pretentious western europe politics/administration point of view that immediately ranks everything (including good ideas) coming from Asia/global South as "not transposable to Europe" or just "not as good as our ways"._
Did you live in China as an immigrant, did you settle down there for several years, did you have to go through their immigration process ?
But you go ahead, state that the way other countries are doing things are irrelevant because of almighty statistics etc. (in absolute numbers, 0.07% of immigrants in China represents more people than the population of either France or Germany). You are not the first one stating this and it just feeds my narrative of people located in EU countries that are convinced that they have nothing to learn from anything that comes over the Atlantic, the Ural or the Mediterranean Sea, so nothing will ever improve nor be challenged.
Now even if I was completely wrong about this assessment (which I'm sure you think I am), it wouldn't make sense to presume that anyone would just take your word for it and allow themselves to be called pretentious when they disagree with you. That rude behavior is not increasing your credibility.
I sincerely hope that you'll get the opportunity to experiment with the immigration process in China which is straightforward and hope that people may overcome the initial reluctance to draw some of the lessons from a country that is far away and has a questionable political system. I am not saying that it is perfect, I am just stating that we have things to learn from it and that I believe it is sad to just overturn anything that comes from countries that are different.
I believe we can end this thread here as it seems that we will definitely not agree, but that's OK. Have a good day and sorry if my behavior appeared as rude to you.
My application went into a blackhole for more than 4 months, while my existing permit expired, essentially making me a prisoner here (I can stay and work in Germany but if I travel internationally, I won't be allowed entry back).
Meanwhile, my applications for a temporary travel permit were unanswered for months. There is no way to contact the foreign office (no email, no telephone, no fax). You just send your application and pray.
I strongly advise anyone to stay away from Germany if you have better options. This country is a bureaucratic nightmare in general.
Mind you, I applied in December. I will not be able to travel out of the country for most of the summer as I wouldn't be allowed to reenter.
They refused multiple times to issue the temporary permit that I'm legally entitled to. I'm having a lawyer ask again, this time with the threat of a lawsuit.
It's such a common problem that I had to write a detailed article about it. People miss weddings and funerals because the immigration office is months late. The number of lawsuits due to inaction is growing exponentially since 2019.
In my case, I was told I was not eligible for the visa I needed but when I spoke to a migration consultant who knew the process, they managed to get it done. I was pretty shocked as this wink, wink, nod, nod style system is not something I expected from this country.
I was told more than once by very knowledgeable people that if you anger a case worker, they can and will make your life hard by nitpicking every little detail and asking for as many documents as they can.
This happens for example if you get angry at their incompetence, or if you sue them for inaction (although in Berlin they see it as normal business by now).
corruption is spreading like a plague with no consequence in sight for anyone involved.
Wikipedia documents that well enough.
It varies form city to city, I live in one that I'd say is an exception on the positive side: Most clerks in the various offices are actually helpful and even giving you hints. I had to renew my passport in January and got an appointment the next day. I got the appointment online(!) in Germany(!!). Passport could be collected 4 weeks later. Meanwhile an ex-colleague who lives in Berlin had to wrestle with his nearest office to even get an appointment for a passport renewal, then gave up and made an appointment with the office in the neighboring district, where it was still a 4 weeks wait. He told me there are districts where it takes up to 6 months.
I guess if you want pain and suffering, move to Berlin. :o)
It's been an absolute mess trying to secure my wife's settlement permit ("Niederlassungserlaubnis"). She has a german Master's degree, works in a government-funded research facility, and has been in the system since December 2022. We've now been ghosted for 14 months, only to be told to make an appointment to provide additional documents (which were not on the 'required documents' list they initially handed to us). After checking the appointment booking website to no avail, I came up with a python script that sends a notification to our phones when a new appointment pops up. It took 40 days of scraping until a new free appointment was available, only to be allowed to provide paper documents in person.
Adding to that, every six months, her employer threatens to fire her if she can't prove her legal status in Germany. So she's constantly jumping through hoops to get this temporary paper permit called "Fiktionsbescheinigung" just to keep her job. It's a hassle, costs €13 each time, and involves cycling through multiple unhelpful bureaucrats at the Ausländerbehörde's hotline (they do not answer emails) until finding one that very reluctantly produces this document.
All of this is beyond frustrating.
[1] https://www.merkur.de/deutschland/muenchen-kvr-auslaenderbeh... [2] https://www.swr.de/swraktuell/baden-wuerttemberg/stuttgart/a...
In comparison I also had to renew my Japanese foreign card and later my ID card, and both procedures were a royal PITA, and in both cases I had to wait a month to get the new card.
Lawyers making mistakes, civil cervants making mistakes, making mistakes themselves. Big mess. They are actually breaking EU law while doing these things.
"Those are random spot checks"
So there are random spot checks where people will check passports. So "nobody will check passports" is false.
But otherwise: keep in mind that the freedom of movement is reserved to EU citizens (and their families): if you had to get a residence permit (and thus you're a non-EU national), you don't have the same rights.
Even without temporary (Covid, terrorism, etc.) internal checks, you can be stopped by police (national laws will differ) and be asked to show proof of id, and proof of your right to stay.
The fact that you have a pending residence application in progress will usually give the right to stay in the country that you applied in, but that proof might be as flimsy as as a stamped slip of paper (not even a A4 paper with a letterhead) and/or an email in the local language. Don't expect German police to be able to read and accept your Italian piece of paper, or viceversa Italian police to read and accept your piece of paper in German.
In fact, the same applies for non-EU family of EU citizens: the residence permits will be denied only in extreme cases (e.g. terrorism)... if you're just a non-EU citizen, there are even more situations in which that would apply. Imagine that the country that you applied in might refuse your residence permit: you'd then have to leave the country and Schengen (or file some kind of appeal), and that would make it even clearer that you wouldn't have right to stay in another Schengen country.
So, you might not have right to stay (in another Schengen country), and even if you might have it, proving your right might not be easy.
About the
> Please add a link
The original request could've made sense (you could have for example linked to directive 2004/38/EC , but that doesn't apply to people who aren't EU citizens or family of EU citizens)... but note that in this case we're trying to prove a negative (the laws will usually describe which rights you have, but not in which case you don't have such a right... you might find a guidance or case law document, but those are scarcer)
Again: the whole situation is really unfortunate, because the laws are also written with the expectation that you won't have to wait long after applying for the necessary documents. And even when the laws are clear about the timelines, the bureaucracy will try to weasel themselves out of it, for example Article 10 of the aforementioned directive states:
> The right of residence of family members of a Union citizen who are not nationals of a Member State shall be evidenced by the issuing of a document called "Residence card of a family member of a Union citizen" no later than six months from the date on which they submit the application. A certificate of application for the residence card shall be issued immediately
Of course, when we had to deal with it, the bureaucracy just asserted that until you show up for the appointment (which you had to wait more than 3 months for, since you originally applied), you haven't actually "submitted your application", yet.
As an EU citizen, realizing first-hand how slow, uncertain, and oppressive our immigration system is, really left a bad taste in my mouth... If you're not a citizen of the EU or an “Annex II” country, I wish you good luck when applying for a Schengen visa, but in case that you might get rejected: don't sweat it, and just consider other destinations, if you're planning a vacation... there are a bunch more places with friendlier visa policies (e.g. Turkiye, Cape Verde, Morocco, UAE, etc.)
Practically, not anymore: there are block posts on main roads into Germany and they check passports.
Also did you forget flying?
I look like a typical WASP programmer in his forties, so no selection bias or something.
See also this marvel of brain damaged legalese: https://www.strazgraniczna.pl/pl/cudzoziemcy/najczesciej-zad...
The incompetence is not confined to immigration, it's pretty much everywhere. Same goes for France actually.
It's scary because the party that complains the most about it is gaining traction, and it convinces centrist parties to change their stance on immigration. It's not a pearl-clutching minority anymore, but a politically advantageous position.
As an immigrant, I feel like we're about to live a variation of the Niemöller poem. "First they came for the asylum seekers..."
If you are not doing any of that is that really that surprising that people are getting fed up with it?
I'd like to see white, christians or atheists, germans move to some of the countries those asylum seekers are coming from and see how they'd be treated.
Then we can discuss if it's the same in every country.
But as a white guy from middle American (in that I lived there for 40 years) who has voted Republican and Democrat and has enough conservative ideas that people are often confused about my political leanings, I can tell you there is some truth to this.
I’ve been in the room more than several hundred times when people who were working in the American bureaucracy openly "decried the horrors of the Mexican invasion ". I will admit the majority of that was my ex’s father but it wasn’t only him. I’m certain he did not make things easier on his Mexican applicants (dmv in his case).
I’ve also heard racial slurs used hundreds of thousands of times, very few people engaging in this voted democrat.
I’m sure there are endless stupid conspiracy theories in progressive echo chambers, I hear them from time to time they are just as silly as republican ones and I would love nothing more the above comment to be correct.
In the end, their experience definitely does not match up with mine and we should all be sad.
For instance, if Republicans are really so hateful of certain minorities, why do they not properly go after things like H1B mills (which benefits minorities more than the rich white people that they supposedly want to limit immigration to)? or take effective action to seal off the borders and make immigration policy stricter? As an immigrant myself, I'd take even that over the current hellish system where you spend a decent chunk of your life in limbo, unable to fully settle down because of the uncertainty, since at least then there would be the finality of immediately knowing the doors are closed. The only way the current system is bearable is if you approach it with total apathy, where you avoid getting too attached and just convince yourself that you can also make it in any other country.
Rather than negotiate measures to fix the immigration system (in either direction), both sides would prefer to keep expanding the class of people who are one technicality away from being kicked out, for Republicans it gives them the ability to promise stronger borders every election year, and for Democrats it gives the ability to promise aid to specifically illegal immigrants and of course once elected they can just say that the last guy left a mess and they had their hands full fixing just that or any version of "the other side isn't cooperating/compromising".
A particularly glaring example of this being their inability to agree on a stronger path to permanent residency for PhD holders. Considering that PhDs are generally funded by grants, not offering very easy immigration for PhD holders amounts to training foreigners at your own expense and sending them back to compete with you. PhD holders typically fit the "we only want the best of the best" position of the Republicans (even if we accept the conspiracy that they actually hate all minorities, it'd be a convenient way to 'wash' that image, without having to accept all that many minorities), and for Democrats it would be a very easy "look, we're slowly working to fix immigration" action.
Add to that the fact that the Republicans now have a second reason not to fix immigration: they can’t run on it if it’s not broken.
If Trump gets in again he will do a lot of anti immigration theater for his base but nothing will really change. Democrats won’t fix it either. Someone has to pick berries and trim hedges.
People come up with this from time to time but the logical conclusion is small governments. It has been a few centuries now and there hasn't been any progress in improving the quality of the politicians; it isn't going to change. Every single government, literally, has people in it who would be morally comfortable in a Nazi-style dictatorship. Any plan that involves empowering these people is stupid.
If your first reaction to this is “well you don’t need anything!” you must be one of the people that was astonished at how the 2016 election went.
No I didn’t vote for the guy and I hope he loses this time.
I dont even mind school taxes, actually. I just believe that the monies should follow the student and not the school district.
Because sometimes you don't have a say, or you don't expect to use it. No politician ever campaigned on making the lines at the DMV move faster. But we (mostly) all agree you should be required to get a license before you drive. Most Americans drive, and few have chose to route this "major part of their life" away from the DMV.
Immigration process (as this thread illustrates) sucks. It's also not a process used by voters.
The process to apply for welfare in most parts of the US sucks, but the actual welfare is valuable. People think by making it harder, it will instead result in people who are less reliant upon it. Welfare recipients are a huge political target constantly. They're the individuals who are "actively hated" in this example, and they're entirely dependent on the system in that moment, because thats how misfortune works.
Many cities making construction permits hard to get, because local residents don't want their neighborhood changing, so they petition local politicians to make the process slower/harder/more-expensive. In this example they "hate" the new construction.
If you're not a high schooler and you're applying to a state-funded university, the process to prove you're a local resident can be surprisingly complicated. This is because it's designed for high school students and all the edge cases are optimized to avoid accidentally providing tax-subsidized "in-state" tuition to an out-of-state resident. For example, I wanted to take a for-fun class at a local university and because I didn't have a local high school to vouch for my residency, I needed to provide (among other things) 50+ pages of tax documents. It took 2 semesters (1y) to prove I lived in the state, and the minimum amount of time you need to live in-state is 1 year.
People who live their life in the "happy-path" case often don't deal with the government, and don't understand the struggle of these edge cases. Plenty of activities require the government. No way around it. Sometimes, people who think "small government" is the solution end up making those processes terrible by making it understaffed or convoluted to "avoid waste".
During my naturalization I was caught by surprise by how quickly my application had been handled. The agent giving me the exam winked and said: "it's election season".
Whatever that means.
My father has only a certificate and no degree or anything like that.
It took him 20 years to get citizenship. We came 3 years after he come here and we all became citizens together.
My friends whose parents were doctors or had masters degree would get their GC and citizenships in like 5 years.
For those 6 to 8 years I had a student visa then an H1B. Despite having a PhD in the top US program in my field from a top five school.
My wife got her GC through the lottery before she finished university (ie w/ a HS diploma) with 0 years living in the US
To properly read this in your intended meaning, do we need to find the political and ethnic makeup of the immigration department? Or society at large?
Eg. Republicans hate taxes, so they defund the IRS (tax collectors), to make it harder for the government to audit tax evasion.
Perhaps too many software developers in the city government of Berlin broke the process to a point it now actually works.
The USCIS website also shows your status and gives a rough timeline.
Once your 'regular' visa expires you go onto a bridging visa which same, you can't really leave the country.
It's expensive as hell too: I think in the end I had a total cost of $7,000, just in application fees. Sounds like immigration is horrible everywhere.
Providing updates to everyone waiting simply wastes time and resources; again, you know roughly how long it's going to take as the estimated times are provided. Hassling the agent on your case is unnecessary.
Regarding leaving and returning Australia - Bridging Visa class Bs are made available if you have good reasons to be leaving and coming back.
I can see this from two sides - my (now ex) wife went through getting temporary then permanent residency in Australia; yes, it was a pain and expensive, but Australia has high standards of living etc, which is why lots of people want to come here. The other side is this - immigration is one of the reasons why there are not enough houses to buy or places to rent, making life difficult for citizens or people who have PR or TR. So if the process of having more immigrants who also require housing is expensive or difficult, I think you'll find a lot of people are not particular sympathetic.
People complain but its generally predictable save for applications for a 3 year visa can lead to a 1 year visa or a 3 year visa or a 5 year visa
There are 2 kinds of countries in Europe:
- Those where movies and TV shows are dubbed: Germany, France etc. Especially the older generations and working class don't speak English too well
- Those where movies are English with subtitles: Many of the smaller countries with their own native language. So everybody is exposed to English all the time and many speak English pretty well.
(Have not watched movies in the Netherlands, but I could guess many are not dubbed?)
In the case of Japan, you also have the insanely difficult writing system, probably the most difficult writing system in current usage. The German language might be difficult, but at least it uses an alphabet with a somewhat consistent spelling.
I loved living in Japan, but even where I lived in Shinagawa, it was very rare finding someone with any English skills at all unless they were young and college educated in the states.
I mean, what do you expect? European languages are all related to each other, so of course it's easier to figure things out by roots. Japanese isn't even remotely related to English, except through borrow-words. That said, I'm usually able to figure a lot of things out by simply reading the katakana, since 95% of the time it's just a borrowed English word. Of course, this depends a lot on what you're looking at: western foods almost always use katakana borrow-words, Asian foods almost never.
I guess you have never visited Finland, Estonia or Hungary...
This is a bit of an understatement. Japanese is a category-V language, taking an estimated 88 weeks of full-time study to learn, while German is a category-II language taking just 30 weeks.
Even better, it's 8000 yen, which with the current exchange rate is about USD $60.
However, I did not have any issues with the bridging visa. It gave me full rights to employment, medicare, and fair taxation (unlike the Work and Holiday Visa I started with, which drastically limited my ability to work, had me paying all medical expenses out-of-pocket, and taxed all my income at the highest tax bracket), and I traveled overseas a few times on it without any issues.
The application fees were expensive, but the bridging visa more than made up for it. I made much more money on the bridging visa than it cost me to apply, so even if my application had been rejected, I would have come out far ahead financially and had a lovely 2-year working holiday in Australia — far better than what the Work and Holiday Visa offers.
From a incentive strucutre POV, they lose nothing from false positives (denying entry to someone who would have been fine) as candidates will probably try again anyway, and no one will come after them for their shitty procedures as by definition applicants aren't full voting citizens and stay in a weaker position possibly all their life (imagine filing a complaint and having your name on a black list the rest of your immigration life, even if that list probably doesn't exist. That fear alone is enough to let a lot of things slide)
On your experience, it really feels like a PITA. It won't help, but Japan and France are basically the same. You'll see procedures listed as typically taking 2~3 months, check back every now and then, and low and behold a year and half later you have absolutely no idea of what's going on, if your submission has been forgotten or is contentious. There's no recourse as long as you haven't been refused, so it's limbo until something happens.
People are right to bitch about these lengthy and utterly frustrating procedures, I just don't see a way out of it short of being rich, famous or finding a loophole that lets you force a government agency do something in a timely manner without getting a target on your back.
To note, France had much progress in the last decades, in that bullshit requirements were made illegal a few years ago. At least you can check everything needed on an official site and not be subjected to petty additional requirements when dealing with the local entity (yes, that was a thing, probably to make it extra hard for specific portions of the population to properly file procedures)
When did you have this experience in Japan? In my experience, immigrating to Japan is a breeze. Even during Covid, it took about 2 months to process my work visa, and from there everything was fast and easy.
PR is pretty slow, though: my coworkers who have applied are reporting wait times of about 9 months.
The standard spouse visa was around 4 months (during covid as well) when it should have been pretty quick according to the clerk receiving it. Tried PR at two different times, first time I moved abroad after half a year, before it finished, second time was a year and half from now and it's still pending with no update.
On any of the visa I applied for I'm meeting the criteria on multiple standards (e.g. I'm both a spouse and father of a national, and employed locally) and never got a rejection, so it's just plainly taking a huge amount of time. I got used to it though.
PS: also it's hilarious to write about your romance with your partner, detailing your dates, attach Disneyland photos etc. and imagine officers in their suits reading all of that with straight faces.
Do you have any examples for this? Genuinely curious.
From where I stand most EU countries right now are talking steps backwards on this as they've become overloaded with migration waves, housing shortages, stagnating wages, which increased the far right support, so the hot topic now is how to discourage ALL immigration, not how to make life better and easier for SOME immigrants to attract them.
Sure, you obviously want to encourage the useful skilled immigration, but like I said, from where I stand it seems countries don't distinguish and are trying to make life hell for all immigrants just to plase the right wing voters since those would be frothing at the mouth if they heard their government is rolling out the red carped to attract SOME immigrants, so then for simplicity the political issue is binary, IMMIGRANTS or NO IMMIGRANTS.
The official website says the wait time for permanent residency is "up to 10 months", and searching Reddit suggests 3-6 months is more normal.
Denmark is not particularly welcoming to immigrants, but they do with rules rather than inefficient paperwork.
Also this "web ui" is so bad and difficult to work with. I lost all the data I input at least twice, also the forms do no seem up to date with the requirements (requirements on newindenmark are different from what is presented on the form).
Citizenship is not the same thing as permanent residence.
I strongly disagree. If you try to attract skilled labour, such hurdles can keep many of them at bay. Germany can become known as a country that's not worth the fight. I have seen a _lot_ of stories about people giving up and leaving, usually because of immigration office delays, but sometimes because they were worn down by other demands.
It also affects the bottom line as Germany becomes a country businesses avoid, either because it's too much effort to set up the business, or too much effort to attract international talent.
You are right that immigrants are invisible as a voter base, but the cumulative effects of their neglect are significant to the German economy, and to the pensions of people who can vote.
I think most immigration offices in the world are pretty much black boxes, mainly because that’s their coping mechanism to deal with the influx of bargaining from rejections they would otherwise have. But it would be nice to have… some proof of progress.
In many countries this is viewed as "it's not your fault, it's the state's fault that the state hasn't processed your application yet, so we will not punish you for the state's tardiness"
I think most countries are like this. Essentially, you are in a "on-hold" status until immigration decides your fate. It's supposed to be temporary but it can take years depending on the country and the circumstance.
The people working on immigration are not lazy or unmotivated, they are exhausted.
Some of the people involved can also be extremely unpleasant to deal with, even if you speak German.
My observation was that by simply changing the view on what is happening and extrapolating how to act based on that one can achieve quite a lot.
I told people the following:
1. The person dealing with you is not there to help you, they are simply executing an act of governance. Rather than wanting them to help you, try to help them close their tickt.
2. You are the type of immigrant people actually want. These popele see lots of drama, lies, heartbreak and hopelessness. If you are pleasant and well prepared they will probably like working on your case since it will not make them feel bad.
3. Things take time. Be as early as possible with everything and realize that there early is a way to speed things up.
Keeping those three things to heart worked very well. That does not make things faster, but it takes a lot of frustration out of the process.
The reality is that bureaucracies are full of humans – and we all know how humans are.
Meanwhile I can't choose between other government services while in Germany but those terrible forced upon me by the state.
There is no perfect competition, supply doesn't perfectly meet demand, and incentives aren't always perfectly aligned ¯\_(ツ)_/¯
In any case, government services change through policy and, thus, indirectly, through the electorate. But a) it lags, b) is not the only issue the electorate care about, c) the supply of money is not infinite, d) the supply of labour is not fungible and e) in this specific case, policy on immigration is generally driven by people not immigrating, so the incentives are not aligned.
Still took months with no success, because the German bureaucracy is in complete disrepair and is brain damaged.
Waiting times are annoying, but that is because of an overloaded system, everything else was pretty painless.
Isn't this just German culture, though? I had that experience just buying groceries and going through the checkout line!
That’s nonsense. The Ukrainians go through an expedited process. Before the war we put in an application for my spouse - 3rd party national spouse of an EU citizen process - we applied pretty much the day after we arrived and a few days before we left the country to live elsewhere (2 1/2 years later) we got a letter that they are considering giving her an appointment.
The German bureaucracy sucks hard.
It does not really help to have separate queues if those are served by the same worker.
Sounds like that one was largely on you…
After being here for 10+ years straight, fully working. Existence of my whole family here and our whole life depended on it, yet I clealy hit a very incompetent (and completely unreachable) bureaucrat. My boss went through same process during mine, 3 weeks and done.
The difference? He is from western part of EU, I am from eastern. Shouldn't make a difference just like colour of skin shouldn't, but it does, in 1000 ways, subtle or not, but this was by far the worst and coming from state/canton.
Utterly miserable and prolonged experience, being in legal vacuum with small kids, while doing everything precisely and timely just like Swiss do and like to see in immigrants. Lost quite a few ideals about Switzerland during those desperate times.
He is living here for like 20 years and still has to fight every year or so for the permit extension.
But the lawyer also said that it would be worth trying a consulate overseas, as they were often a lot more efficient. So (as his wife had business in Berlin) he made an appointment with the consulate in Frankfurt. From interview to getting his passport back with visa - five days.
yep, you are German alright!
In practice, German schools are pretty decent, but they obsess about PISA scores and so neglect to ever notice what the schools are doing well. The train networks are fairly extensive, can be quite cheap depending on how you travel, and consistent across the country, but a lot of Germans would much rather complain about how late they are than recognise anything positive about the system. The general public transport networks (i.e. transport inside towns and cities) are amazing, and one of the things that I would most miss if I went anywhere else.
I think part of it is just that if you're German, you rarely see these systems from an outside perspective, so you only see the points that chafe regularly. But another part of it really is just that German tendency to criticise first rather than to view things holistically.
Somehow there should be a ranking of the foreign language abilities of countries. There Germany would do incredibly well.
It's strange that people obsess over math school rankings, but how many people do calculus beyond their schooling where as many, many people use a foreign language often in their work.
It's a non-BS thing people can learn at school and something that Northern Europeans do spectacularly well at.
Same with schools and educators. And don't get me started on healthcare.
Your sentiment is part of the problem to be honest: Germans are always complaining, it's fine as it is bla bla. It is if you compare yourself to third world countries. But we compete with Japan, Switzerland, the nordics and so on. Also note that this is not a sentiment that is only found in Germans but also a lot of (high value) immigrants who move on after touching base. Germany has a lot of potential but utilizes that very little.
Why would I recognize anything positive about the transport system that has a high likelihood of making my trip a nightmare? It's literally the most important thing, to get me from a to b. That doesn't work with massive delays, cancellations, reschedulings and I miss my connections.
There are serious structural deficiencies at Deutsche Bahn, absolutely. But the gras is also always greener elsewhere. The nordics don’t have a better train network.
It’s bad enough in Sweden that a Chinese company has started offering the MTRX, basically the ICE equivalent between the two largest cities (although much slower, more like an IC) and that’s the best connection you can get. Imagine the outcry if that was the case in Germany for Munich-Berlin…
The polar express from Stockholm to Narvik was awesome. On the trip down we had problems with construction and ice, so we were stranded in Abisko. We were taken with buses to a hotel, got food and even got a refund + 700skr deduction for our next trip. No questions asked. The experience was the opposite of the one you get in Germany. No bureaucracy. We got the SMS after Riksgränsen!
The next day I couldn't make my original train from Stockholm to Kopenhagen, so the train conductor just got me a new ticket for free. No questions asked. No bureaucracy.
Clear communication, situation well handled, all good. So at least this part blew my mind! Also the ticket control by just checking seats. Awesome.
But to present that as a full picture of the German transport system is to be completely myopic, and that's the issue. Yes, improvement is possible and necessary, but it's also nice to celebrate the successes of your country, and having a single system that covers pretty much all of the country, that integrates regional and intercity travel, that has a transparent and reasonably cost-effective pricing structure, that includes deals like the Länder-Tickets and the 49€ ticket, that is clean, and many other things besides feels like a success to me.
Do there need to be changes and improvements? Yes, of course! But this sort of self-flagellation ("oh woe is us, our transport system isn't perfect") is really tiring.
I'm not so sure at this point. Comparing ourselves to the UK would be sad tbh.
Yes the 49€ ticket is a nice achievement. But again, it's not about having a perfect transport system. It's having one that is representative to our position in the world, our wealth etc. Buses are something of a gamble. Trains are notoriously unreliable. The same goes for a lot of regional/local providers. That's basic. Things like nice seatings, luxuries, food etc. would make it perfect. But you need to cover the basics first.
So I think we need some of that outrage you're channeling in order to make our politicians (and society) accountable when they become too complacent. But I also think it's not effective when you overshoot and start painting in a much worse light than it actually is - because all those other countries have problems too. There's a lot that went wrong with Deutsche Bahn (and it's of course nowhere near the level of SBB in Switzerland), but most of the time the system is reliable, decent and high-frequency and -density enough, which is something that is just not true in many areas of the world, even in Europe (there are enough places even in Europe where you wouldn't want to live without a car).
And don't forget Germany has one of the lowest annual working hours in the world
[1] https://taxfoundation.org/data/all/global/tax-burden-on-labo... [2] https://taxfoundation.org/data/all/eu/tax-burden-labor-europ...
https://en.wikipedia.org/wiki/Tax_Foundation
>Payroll taxes are typically flat-rate taxes levied on wages and are in addition to the taxes on income. In most OECD countries, both the employer and the employee pay payroll taxes. These taxes usually fund specific social programs, such as unemployment insurance, health insurance, and old age insurance.
Social security and pesnions aren't financed by taxes, in Germany taxes are not earmarked for a specific purpose.
If you would replace social security and pension contributions by private insurances with the same costs people wouldn't have more money available but the Germany's index position would be better.
You could even double the costs and the index would claim an advantage for workers even though they would have less money.
> Social security and pesnions aren't financed by taxes, in Germany taxes are not earmarked for a specific purpose.
Not sure I can follow. Of course the pensions and social security are quite substantially tax funded [2].
[1] https://de.statista.com/infografik/13660/oecd-vergleich-steu... [2] https://www.ihre-vorsorge.de/rente/nachrichten/haushalt-fuer...
Like I said, if all social security was through private insurance the tax burden would be lower but the people wouldn't have more money.
Health insurance proved otherwise. As long as you are healthy you pay less but as soon you get sick more often it gets way more expensive.
But the later wouldn't be recognized as tax burden.
Tax burden itself is a useless measure, the total cost of living is better.
It won't be that lower. The German pension has existing liabilities that they must pay. Since it is backed by the state, it will inevitably be paid by the taxes.
Even if the pension payments were abolished, just to pay existing entitlements, the taxes would be increased proportionally. The public pension can be considered a plus in a young country with a healthy demographics. In a geriatric state such as Germany, it is a big burden.
>Social security and pesnions aren't financed by taxes, in Germany taxes are not earmarked for a specific purpose.
This is wrong. Because the pension contributions are not enough to cover the payments, every year billions from the tax revenue is used to pay the pensions. The German pension system is effectively bankrolled every year with the tax money.
>If you would replace social security and pension contributions by private insurances with the same costs people wouldn't have more money available but the Germany's index position would be better.
This is also wrong. The other countries have social security (For example: Australia). Unlike Germany, they don't charge for public pension separately. The contributions are included in the income tax. So it makes perfect sense to include it in the total tax burden for Germany.
[1]-https://www.oecd.org/tax/tax-policy/taxing-wages-germany.pdf
Because the pension contributions are used for non-insurance benefits that should actually be paid for by all taxpayers, such as the mothers' pension or the equalization of pensions for retirees in East and West Germany.
BTW "every year billions from the tax revenue is used to pay the pensions" proves social security and pension contributions aren't taxes. Tax money is a subsidy not the main source.
>This is also wrong.
That part is totally missing my point. It's about the ranking. Without public social security the ranking would be better but worse for the workers and just because it's a tax in Autralia you can't simply count it as a tax in Germany.
If you want to compare you need the total costs of living not the tax burden. Tax burden is just leverage to help companies and harm workers.
Replace taxes by fees and the tax foundation is happy, the people not so much.
Why would you compare total cost of living to find which country has the higher taxes? It doesn't make sense. Besides, you claimed Denmark had higher taxes. It has been proven that it was wrong.
>Tax burden is just leverage to help companies and harm workers.
I would like to hear how you reached this conclusion.
>just because it's a tax in Autralia you can't simply count it as a tax in Germany.
Yes you can, if your goal is to make a fair comparison between countries. The OECD uses it for measuring the tax burden on income. Especially because, the countries like Germany use 'creative labelling' to hide how much money they collect each year.
>Because the pension contributions are used for non-insurance benefits that should actually be paid for by all taxpayers, such as the mothers' pension or the equalization of pensions for retirees in East and West Germany. BTW "every year billions from the tax revenue is used to pay the pensions" proves social security and pension contributions aren't taxes. Tax money is a subsidy not the main source.
You've just proven my point. Because the money can be easily shuffled around, in practice, it is no different than income tax.
Of course if you are a civil servant or part of some mega union, but for the rest of the private plebs it is often 9h daily(because lunch break is not part of contract) and most do a long commute(because of eternal housing crisis) which may raise it to 12-14h easily.
"The data are published with the following health warning: The data are intended for comparisons of trends over time; they are unsuitable for comparisons of the level of average annual hours of work for a given year, because of differences in their sources and method of calculation."
Yes, in Germany are many part-time workers but overall mostly they are not working 6 hours the day . Normal is - afaik - 8 hours per day on approx. 220 days in a year.
It's not nationalism. Rather, there is some amount of willingness to give up personal comfort for some sort of general/societal greater good.
This is really something I've noticed compared to say the UK, Australia, certain asian countries, etc.
Not sure why it hasn't translated to improving bureaucracy.
[1] Source: https://de.wikipedia.org/wiki/Freiwillige_Feuerwehr#Deutschl... (in German)
I wouldn't say that this comes anywhere close to many other countries in Germany. Societal coherence in e.g. Russia or Norway is much higher than in Germany.
I think it's rather the other way around: The countries you're comparing to might be exceptionally bad at it, and Germany is average.
Russia (with the exception of its ethnic minorities) is one of the most atomized societies in Europe, actually. The Russian dream is a house in the exurbs with a three-meter-tall impenetrable fence around the lot where you can do anything you want inside and no one will bother you.
I can't wait for the new Nigerian immigrant to swing his beer at Octoberfest arm in arm with the second generation Turk from Munich, all while the waitress, a temporary worker from the Czech Republic, rushes on.
It's not going to happen. Social cohesion is very low, and Germany failed to foster a sense of shared values among immigrants.
Wait, isn't that what's happening already? I'm pretty sure the temporary worker from the Czech Republic is there, as is the second generation Turk voting for Erdogan. Not fully sure about the Nigerian immigrant though.
And that is not good for fostering a collective spirit. The order-abiding nature of Germans collides with the people from country that are more used to bend the rules, so everyone is stressed and unhappy.
I guess it's what you call immigration made in Germany.
> The order-abiding nature of Germans collides with the people from country that are more used to bend the rules, so everyone is stressed and unhappy.
Ah, there is a bit of a cultural misunderstanding right there indeed. In Germany, what is not allowed is forbidden. You need a certain rigidity of mind to be able to think that way. In many other cultures, what is not forbidden is allowed. Meaning that a badly defined rule leaves lots of leeway for a bit of creative thinking. Those are two different worlds careening towards an inevitable collision course..
But yeah, there are a lot of negatives counterbalancing that.
(I lived in Germany for about a year as an American college exchange student)
Living here, i disagree. Just on my way to the train station i saw at least 10 cigarette butts on the ground. And its like that across the whole city.
They liked Spain a lot, but the first comment they made when we went for a walk was how clean the streets and the surroundings where.
Your cleanliness mileage may vary per Land, I guess.
Hardly. A lot of people buy into FUD without questioning it. A lot of people never question their government or rules no matter how stupid they are.
They'll just tell you to follow the rules even if you explain to them in a 100 page essay why those rules make no sense and are even detrimental.
They never acknowledge the possibility that their government/bureaucratic systems in palce can be faulty. If it doesn't work for you, then it must be your fault, not the system's fault.
It's the kind of blind trust in the system that lead to the Wirecard scandal happening under the watch of the entire world.
Rational people constantly question things, not trust and follow them blindly.
There's junkies fighting for crack in their underwear in minus degree weather right in the center of Frankfurt, shit and needles everywhere all around hauptbahnhof, come on.
Even though I'm currently in a "it's complicated" relationship with Germany, I moved here by choice because I loved the place. These things are still there, but since I'm working so close to Germany's problems, I let it get to me sometimes.
In terms of mentality, Bavarians are very different from Rhinelanders who are very different from East Germans. Berlin is a bubble in and of itself and can't really be compared to the rest. In general, Germans tend to take comfort in clear rules and structure, and are used to a certain kind of cutting through bullshit, both of which may be a good or a bad thing. I'll also add that, to my knowledge, no other country has reflected its own role in history as deeply and critically as Germany has, which to me comes as a bonus even when there is a tendency to overcorrect.
Food is IMHO not great (except Käsespatzle), but beer is some of the best in the world.
You hear people complaining a lot since they like to and we live with crazy priorities like "time to launch a company in days" but in the real world if we had a choice of where you are born Germany will be high on the list.
The biggest issue was that we needed one of my documents (the birth certificate) to have a seal of authenticity from my home country, which then all needed to be translated officially. That took longer than it needed to because we didn't realise it needed to be authenticated and so we got it returned at one point and needed to resubmit it. But apart from that, it was mostly a case of waiting for the formalities to go through - that took a couple of months in total, but it required relatively little work overall. I suspect in total, getting married in another country would have taken more work to organise and arrange, although it would probably have been quicker with the right combination of country and pre-existing documents.
Hundreds of non-resident trees marry in Denmark every week.
https://medium.com/@msosacordero/how-to-get-married-in-denma...
We've had a number of friends do the same due to similar issues, plus the German process can be very cost prohibitive once you start including official translators and such.
The Danish authorities accept a passport as a proof of ID, and the supporting documents can be in Danish, English or German.
I think most immigrants who get married in Germany are doing it for legal reasons primarily.
And in actual emergencies, these processes can be accelerated, like every other buerocratic process in Germany
This rubs me the wrong way a bit, and it’s because it’s clearly quite obvious there are many reasons you’d want to get married fast (emergency health issues, unplanned pregnancies, visa issues, etc etc. can come up with a million reasons easily).
You are really asking in a very ungracious way why doesn’t everyone just simply live like an ideal German.
Most pregnancies take a while, two weeks is plenty of time. Don't even get me started on how long immigration bureaucracy takes -- two weeks is a drop in the bucket.
There is quite a business around this.
Big brain move, how many innocent couples get caught in the net, versus how many fraudsters can you realistically catch (organized crime has figured out how to game the bureaucracy, no doubt).
If one doesn't respect German laws, best to go to a country which works differently and stay there.
Anyway none of this is about respecting German law.
sure, why not? People leave for various reasons. People are free to go.
> Anyway none of this is about respecting German law.
Law and traditions. Marriage is a serious decision with lots of implications. It's not the bureaucracy (alone), which slows the process down.
I think it is outrageous for a government to allege, or even just to investigate, particular causes for marriage unless one of the parties was coerced into it rather than wanting it out of their own free will.
allaboutberlin.com seems to be comparatively devoid of frustration and objectively lays out the situation + steps to be taken in each situation.
I often think about starting a community that functions like /r/berlin, but with a professional moderator like dang to maintain decorum, deduplicate threads, and generally keep the place tidy.
With Toytown Germany simply vanishing, there's both a need and a market for it. I just never want to be a moderator again.
If /r/berlin is anything like /r/japanlife, the problem IS the moderator.
I do place some blame on embassies not issuing documents in local languages. I’m not asking for proof I’m not married for fun! Extremely unhelpful, tho a good job generator for translators.
In the end tho, lots of these convos are based off of people coming from the Wild West of common law, which leads to the US government saying stuff like “well we don’t know if you’re married but you can sign an affidavit in front of us”. The American Empire, barely capable of a proper census!
Things can and should be improved, but I do think it’s good to be cognizant of the fact that many countries off of differing axioms (especially when it comes to things like the need/interdiction of knowing where your residents live)
How would a census help? That's just you declaring your marital status in front of them, without having to sign anything; it has even less probative value than what you're presenting as a stopgap measure that wouldn't be necessary if the census worked better.
But those records aren't really fit for the purpose of certifying that someone is not currently married, because (a) they do not include people who don't need to file taxes; and (b) they are only updated once a year.
For pretty much every other administrative purpose, it doesn't matter whether you're married or not, so I don't really see why you'd want the tax records updated more often.
Elsewhere in Germany, bureaucracy tends to be tedious but functional.
The neglicence of the state of Berlin is actually illegal in many cases. I once even asked a lawyer if I could sue them for their delays, but he wrote back to me to the effect that he was too much on good terms with them to sue, but that I could pay him some money (out of my pocket, of course) so he would go "talk" to them.
Data to back up your assertion that it’s only Berlin? I can speak for Düsseldorf, which is a total nightmare. Literally everything folks talk about regarding issues in Berlin also happens as a matter of course in Düsseldorf.
A friend of mine is high up in the NRW civil servants apparatus and he confirms it’s fucked across the board in NRW.
However, this is understandable given German history.
> However, this is understandable given German history.
So tired of this apologetics, modern German bureaucracy has been built exactly by former Nazis and Stasi agents.
I would argue that they are the best then to design something private :)
Seriously though if you're allowed to corner part of the population and brutally vent on them, next you'll need "privacy" to avoid consequences and revenge.
Sorry, I didn't mean it as an apology, it's more that I understand the historical context (at least that's what several Germans have told me).
I strongly prefer the system where I live, where I can pretty much arrange everything government-related from behind a keyboard and a universal authenticator (DigiD).
The modern US was founded by slave owners, Spain was a dictatorship for longer than most of Germany, Poland was sliding into illiberal democracy until very recently, most of Latin America seems one recession away from a coup or revolution, ... there is a lot of continuity between liberal democracies and authoritarian governments. The roots of German bureaucracy also go much further back than the Nazi era (at least to Prussia).
I'm not really sure what using loaded language like this accomplished, though.
How frustrating for London and Washington to fight and win a war against the Nazis, then occupy (the Western half of) Germany for 7 years, imposing a new government on the country -- all to no effect.
There are issues everywhere but Berlin is particularly bad. We weren't even able to hold a regular election without messing it up.
I'd need someone who is well-versed in "talking". (Feel free to dm via my email.)
Read this as a primer: https://allaboutberlin.com/guides/berlin-auslanderbehorde-ap...
German bureaucracy is (in)famous for paperwork and using faxes. Citizens/residents have no unique identifier (more and more weakened recently) and need to present documentation for everything. If you have no paper birth certificate you are not born...
Finland has had much higher digitalization for decades. You have a person number and authorities store everything centrally. A big brother nightmare for Germans.
20 years ago many processes in Finland went quickly, much more smoothly than in Germany. However, recently more and more authorities went into meltdown. It takes 3 or 6 months to renew a passport (or you queue in the street for many hours to get it done without an internet reservation). Certificates needed for inheritance processes delayed for many months each, so in the end heirs don't get access to their property until years later. If an elder person needs a legal guardian because they are unable to handle banking or similar anymore, you are more or less openly told: Does not make sense queuing, they will die first.
Where the degradation came from I have no idea. At least digitalization is not a guarantee that things work smoothly. In some areas (but probably none of those examples I mentioned) failed IT projects are the direct cause that processes break down.
- A limited company is not always a giant manufacturing concern
- An ever increasing amount of the population will not have been born in and will not be living their whole lives in Finland.
IT is a nice frontend for it and can serve you in many languages and with the latest and greatest UX - but the actual processes and decisions are not keeping pace. Changing these is a high-friction, low-reward endeavour for politicians.
[1] https://www.vero.fi/en/About-us/contact-us/processing-times-...
In my opinion, the tax card system effectively just moves the deadline for the tax return to Nov/December so you can ensure it's completely up to date then and not pay anything extra.
They often try to recreate the paper process with IT, instead of making a complete new setup.
Example:
Previously, you had to go to the City Hall or whatever in your pace of birth to get a birth certificate.
Now you can email them, pay, and they mail you the certificate via snail mail.
How it should be: Use an online token, log into your account, request a birth certificate and just print it. It should have a URL that can be used to verify that it is valid. This would be faster and the risk of forgery would be much lower. A seal - and Germans love seals, they wank of to seals - can be forged much easier.
Lots of decision's, made no sense in software development.
But we must have process and governance in place. Let us set a meeting to discuss.
> Now you can email them, pay, and they mail you the certificate via snail mail.
> How it should be: Use an online token, log into your account, request a birth certificate and just print it. It should have a URL that can be used to verify that it is valid. This would be faster and the risk of forgery would be much lower. A seal - and Germans love seals, they wank of to seals - can be forged much easier.
That's an unreasonably high (or weird) standard. What country has a process like that? Switzerland certainly doesn't.
Even Brazil. Things like Background Check works like this. You can create a PDF that can be online validated.
Western consultancies win contracts to build IT systems. The project is outsourced to India for low cost. Indian outsourcing team hires the cheapest talent possible. Cheap talent provides cheap quality. Website is bloated and slow. Some person on the internet uses these systems, hates it and develops a strong negative bias for all Indian (replace with any 3rd world country) talent.
On the other hand, Indian Govt hires the competent Indians at fair prices. (These aren't even our best or that well paid). It treats them with (moderate) respect and allows them to own their projects. Indian Govt. websites turn out to be seamless, performant and handle 10x the scale of western IT systems. This is a recent phenomenon, but India's digitization of railways, covid management, aadhar, social welfare and UPI has been best in class.
Reminds me of when westerners visit India, eat at the most suspicious looking street food place, and inevitably get sick. You never want your street food (programmers) to be cheaper than the bar set by local middle class (or their taxes). Yeah, outsourcing will save money. But, have some standards.
You get what you pay for.
There is some weird notion in populace that if we cut the funding, the public services will "get handle of themselves" and become more cost efficient. That's what a reasonable individual would do in tougher times. What happens in reality is that the nepotist core in public services will entrench and be fine or even better off, while the society will be told to suck it up.
Honestly, the whole funding debate for public services is often so facile and ideologically entrenched. Both sides are right: Public services _are_ invariably inefficient, and cutting funding _does_ invariably do little to increase efficiency. But neither side will accept the validity of the other's argument and so we end up with this cycle of alternating governments imposing austerity and generosity.
The NHS used to be very efficient, when it was managed largely by clinical staff. Now it has as many professional managers as clinical staff, and they all have to be paid...
Also an awful lot of the NHS fuctionality is now farmed-out to private healthcare companies, who need their rake-off.
As far as "professional managers" is concerned, these guys are mostly NHS managers, not the kind of managers that could easily transfer into a private company. Their expertise is in some obscure corner of the NHS.
I don't want my taxes to pay for a desk that I have to go to to show my passport to someone so they can make me an ID card with the same information as the card that the man-with-the-gun-at-the-airport thought was OK enough to let me in to the country with, but the bank won't accept as strong enough proof of ID. Bureaucracy is not a service.
Then there is the war in Ukraine. Normally, Russia is one of the most important trading partners of Finland. But when it doesn't know how to behave, a large part of foreign trade is missing, and the economy suffers.
Partially explains why there is no light in the tunnel of the state budget.
But it does not explain why many authorities are struggling with services for residents which worked better a decade ago. It is not so that authorities would have experienced severe cuts in budgets or headcount during the last 2 years.
The was a first overheating boom in the end of the 1980s, until a heavy recession took over in the 1990s. The next boom was Nokia driven in the 2000s until the global banking crisis. Since Nokia has fallen (well, it still exists but with a different business and more modest success) there has been little to no growth and heavy deindustrialization.
So basically Finland is back to the previous state of being a poor country with weak industry (I am exaggerating a bit). But the spending has continued to grow like the Nokia boom years had never ended.
Edit: Finland has one of the least favorite population pyramids in Europe. People getting older and no children. Very little immigration until maybe the last decade. And now a far right government with a strong anti-immigration agenda.
The EMU is a mechanism effectively set up to extract wealth from the european periphery, for the benefit of Germany (and maybe to a lesser extent Framce). Finland is very much on the losing side, along with Greece, Portugal etc.
Perhaps with the difference that the culture is very protestant, with high trust in government. So rather than letting the situatiom deteriorate to what it was in southern Europe durkng the Euro crisis, the populace will flock to the stern faces speaking of deficits in the media, and dutifully vote them in.
Nonsense. „Devaluating the national currency“ is a euphemism for extracting wealth from the citizens without them realizing getting poor. The stability criteria are there to protect you from a government destroying your money.
I don’t get why so many Europeans think the Euro is hurting them economically while in reality it was holding them back (especially in Greece and Italy, their national currency was practically worthless). However, it takes time for member state governments to get used to an independent central bank.
Best regards and hot kisses from Germany.
True. When Finland dropped 2 digits from its currency in the 60s the Finnish Mark and the German Mark where roughly 1:1. When the Euro was introduced 40 years later the exchange rate was 3:1. So 200% inflation over the years more than Germany which was far from stable either. So Finland was a high inflation country all the time.
I don't think high inflation countries are known for good economy. Finland for example had massive emigration. I don't think by having continued the high inflation route after 2000 the situation would be significantly brighter today.
Any large org tends to get more inefficient with time as it accumulates inefficient components it can't get rid of, but unlike companies, government departments aren't going to go bust and close down.
I genuinely don't know a good answer here, but would be curious about other people's.
Perhaps that's fundamentally barking up the wrong tree. West-European governments in the post WW2 era have had higher relative spendings then that, without every financial expert and their dog declaiming that doomsday is near and services need to be cut.
We've been able to finance better healthcare before, we've able to finance better education before, we've been able to finance better infrastructure before, etc. So which costs have risen out of proportion to the point that none of that is possible today.
Basically all of them.
https://slatestarcodex.com/2017/02/09/considerations-on-cost...
Which I think is partially due to institutions becoming less efficient with time as more organizational scar tissue accumulates (certainly seen a lot of this at the companies I've worked for). Plus gov departments tend to accumulate extra low-return responsibilities from politician gimmicks (the mismatch between what sounds good in a headline and whats cost effective).
Which in turn I think comes from scope insensitivity, we just aren't good at understanding scale and underestimate defuse costs.
It's not the costs that have rise sharply, it's the revenue and taxes that have declined since WW2 due to increased competition from globalization and the offshoring of jobs abroad, plus tax heavens aiding big corporation avoid paying taxes locally in western european countries, meaning governments today are missing out on a lot of income they used to get in the past, income which is now in places like China and in tax heavens.
But taking job offshoring, as an example. It could be fairly straightforward to determine how much tax revenue a car produced in, say, Germany, contributes to the economy, vs the same car imported from abroad. But where it gets complicated is that, German unemployment being low, the worker that lost his or her job to offshoring didn't turn out jobless, and by his or her work is still contributing to tax incomes. So what is the loss?
A lot of money is lost to tax havens, but the hourly productivity has also increased drastically, meaning that governments might still get more income per worker, per working hour. Governments are loosing in absolute terms, but have they lost income in relative terms?
The general feeling I have, is that a lot more money is lost to greed. As an example, we could take healthcare. It is undeniable that the average quality of healthcare has increased (for instance, looking at cancer suitability), but the cost of basic healthcare items have also, in some cases, increased disproportionately. (For instance looking at the cost of insulin in the US, or a dose of COVID vaccine, etc). So the general impression is that we are paying a lot more than before for only a slight increase in health and well-being.
And how does that apply to other trades? Construction costs have exploded, but we are not getting much better houses for it.
And therefore the general question was more: which parts of society are profiteering from forms of greed and price-gouging, how can we quantify that, and what can be done about it so that we, as a society can continue to improve on the care and the services we offer to our citizens, as opposed to accepting regression as the inevitable way forward.
Less bargaining Power and less wages therefore less revenue for the state and spending power for the people.
Decades ago a factory worker could support a family. That's not the case anymore.
Offshoring doesn't automatically result in mass unemployment.
I've been looking at the inflation + CPI index in Europe [0] over the 1990-2020 period. The result is that for an equivalent €100 in 1990, you would need to earn about €200 in 2023. According to [1], the wages in Germany have not increased enough (due to the well known wage stagnation of the 2000-2008 era). But the wages in France [2] (with data over the 2000-2023 period) have. Over the 2008-2019 period, the wages in both countries were increasing at the same rate.
The inflation + CPI index is not perfect, but it gives an indication of the costs changes of a "representative" consumer basket. With our sample of 2, this means that those basic costs have not increased disproportionately w.r.t. wages over the 1990-2023 time period. The pill was a bit harder to swallow for the Germans, but they also started at a higher level.
But what the inflation + CPI index totally fail to take into account is the explosion of other costs that now put single-income families in great difficulties w.r.t. a few decades ago. And the mechanism behind those costs increase is the one that would be interesting to understand and analyze.
[0] https://www.inflationtool.com/euro
[1] https://www.statista.com/statistics/416207/average-annual-wa...
[2] https://www.statista.com/statistics/416204/average-annual-wa...
>We've been able to finance better healthcare before
Modern healthcare is better than anything before. Even in its dysfunctional state it is better. Sure, you might have to wait longer to see a specialist, but the number of cases where the reply you get is "nothing we can do" is lower.
The things you mention are more expensive to provide today. One of the reasons is that our requirements for those services are much higher leading to much higher inherent costs.
https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?location...
This is the Gini coefficient for those countries: https://data.worldbank.org/indicator/SI.POV.GINI?locations=F...
Looking at France and the quality of their industrial output in the 70s to 90s, ranging from high-speed trains, rockets, passenger airplanes, Concorde, helicopters, (racing) cars, submarines, nuclear power plants, medical labs, etc. I would say yes. Their infrastructure has also been of high quality, so has the education system of their elites, and their healthcare.
And from what I could see of Belgium and their infrastructure, it also looked like that period was good for them.
> Modern healthcare is better than anything before. Even in its dysfunctional state it is better.
This is a more relevant point. The question is if we aren't well past a point of diminishing returns. For instance, for France, the data shows that the life expectancy of women was increasing by 2 years every 10 years, until 2010. It has increased by 0.5 years since then. The life expectancy of men followed a similar trend.
In fact, we might not have seen the full effect dysfunctional health care just yet, and we could be riding on the momentum of previous gains. And the ever increasing delays to see a specialist can only have detrimental effects in the long term. In parallel, the disproportionate increase of healthcare costs per patients means that, at some point, life expectancy is going to go down.
> One of the reasons is that our requirements for those services are much higher leading to much higher inherent costs.
No, I don't think I agree. The house you are getting has not improved 3 fold in quality compared to 20 years ago. The roads you are driving on are not 2 times better. Train travel is not a lot safer, nor faster, nor with more frequent service. On the contrary. The food quality in your supermarket has not improved. The electricity you use still has the same voltage and the same frequency. The clothes you wear are not of higher quality.
France also has kind-of a colonial empire still going on. Could that have an effect?
>The house you are getting has not improved 3 fold in quality compared to 20 years ago
That's true, but there is likely the 80/20 principle at play. Every additional level of quality costs more and more to achieve. Not to mention that often the increase of quality isn't really noticeable. Eg lead paint vs not, better wiring (fewer house fires), better insulation (lower heating costs), better air circulation (less mold) etc.
You also have the problem of survivorship bias. The old homes that are still used today are the probably the better ones. The worse ones from back in the day just didn't last.
But all-in-all, I can only suggest reasons. I'm from a former Soviet state. Some of the transformations are that good. Eg sidewalk roads actually feel 2x better if not more. These days they are nice and smooth roads you could skateboard on. Back in the day I'm not sure I would even want to ride a bicycle on them because they looked like the surface of the moon. And clothes are much cheaper in relative terms and even in absolute terms. But I think this is an exception and not a general trend.
They were officially post-colonial by that time, and what is left is perhaps more a financial drain than a net income gain, although geostrategically invaluable.
> Every additional level of quality costs more and more to achieve. Not to mention that often the increase of quality isn't really noticeable. Eg lead paint vs not, better wiring (fewer house fires), better insulation (lower heating costs), better air circulation (less mold) etc.
They might increase cost, or they might not, as they are logical continuation of progress (as in, does lead-less paint really cost more to produce than leaded paint?) but in the end, they are "marginal" costs on a house, maybe in the order of 15%? So by themselves, they are not going to increase the price by 300%.
> I'm from a former Soviet state.
That brings a very different perspective, yes. Having spent quite a lot of time in eastern Europe, it is clear that the life experienced in that period was very, very different, and that many improvements where brought in, in quality and quantity.
But taking the road example, if you go to Belgium, you will have the joy of experiencing the inverse phenomenon, with a decrepit infrastructure that has been much, much better in the past. Imagine the moon surface you described, and then on a motorway, with cars driving by at 130 kph.. I've seen motorway signs covered in moss, as if an apocalypse had hit.
For clothes, I have items that were bought at the turn of the century and are still "wearable", but no recent clothing item seem to survive more than a year or two, independently of the cost. Which is an annoyance: I wouldn't mind paying more for something that lasts, but, so far, haven't found a brand that does. Of course, the current state of affair is an upgrade on the quality and quantity of clothing that was available in ex Eastern-block states. (Although, as bad as the fabric and colors were, I can only assume that they were built to last?)
The better metric would be how many employees work (directly or indirectly) for the government and then compare those numbers.
This is really the crux of it. Same incompetence and inefficiency, we see in tech industry. Are there any serious studies on the disease that comes with scale, and possibly its cure?
Over time I developed a more cynical theory. As politicians have extremely short-term understandings and targets, they abuse the latent momentum of public services to surf on the inherent delayed response before service quality goes down and gets noticed. By then, they can blame the cause on something else, and move on to the next cost-cutting measure.
Even if there is an outcry, they can gaslight citizens into believing either that a) it was not better before or b) the changes are an imperious necessity that cannot be reversed.
Either way, the personnel and knowledge has been lost, so the service (and the quality-of-life that came with it) are lost forever.
(opinion) Human society large rewards narcissism. Diligence is usually rewarded with exploitation. There's actually academic supporting the 2nd. Therefore, most politicians are largely selfish and mostly interested in being on TV, being the center of attention, and holding sway over other citizens. (Not all, just the majority). The only metric is "what gets elected." However, like "green" anything, the optimization is usually "do nothing, and color the corporate logo green."
Causes further issues. The optimization becomes, "focus on highly incendiary minutia, while avoiding anything risky, and maximizing viewer attention and anxiety." Issues that will allow them to say they're valiant, while exposing nothing especially damaging for the next election.
The American fiscal funding fiasco this / last year is typical. 6 months, and America finally has a budget. All the while, it's mostly arguments about minutia like "Homeland Security impeachment", who the speaker is, where Military can get abortions, whether a base will get funding, migrants on buses, and weekly CR shutdown "thwarting". It literally became weekly federal budgets around Feb-Mar in America... Meanwhile, a lot of enlisted in those abortion / base (yes/no?) states are wondering whether they're going to get paychecks. People on boats complain about having no ammunition to shoot with...
London's sewers are another excellent example. Dithering and dithering about repairs, about maintenance, about public toilets. Except the Thames is bright yellow, people won't go swimming, and when somebody asks, they're response is "well, btw, we're actually £18,000,000,000 in debt. Make -£2,000,000,000 per year. Have for years. Nobody even noticed. lolz." https://en.wikipedia.org/wiki/Thames_Water Obvious optimization, nationalize while decrying the evils of the private sector. Quietly also nationalize the debt to the public in a line item somewhere that nobody writes about. Squander resources for years. Sell back to industry claiming the salvation of capitalism.
Ah, the privatization switcheroo.
1) Have a state develop and pay for expensive and necessary assets
2) Preach that privatization is necessary because -something-something-government == inefficient.
3) Take prized assets at a bargain price. Under-invest chronically and strip valuable assets
4) Get paid again when company is re-nationalized
5) Goto 2)
To make the different steps smoother, you can add a good government-industry revolving-door policy. Nothing helps capitalism efficiency more than a bit of cronyism.
I've never actually looked at the German budget (quasi B1 deutschkenntnisse and no training in economics, what would I get from reading them?), what I can say is that it's very easy to fall into the trap described by Chesterton's fence and call for the removal of things because you don't understand them, not because they're actually bad.
For example, someone I used to know in the UK said much the same about his taxes paying for schools, just because he personally didn't have kids.
>For example, someone I used to know in the UK said much the same about his taxes paying for schools, just because he personally didn't have kids.
This isn't what I said. If I pay half of my wages to the state I would expect them to manage to staff government offices. Maybe besides defense, basic administration has to be the most important function of the government, as nearly every other activity relies on it. There is zero doubt in my mind that there is something less important in the budget than performing the core functions of any government.
Dankeschön.
If I'm reading this right (I may not be, see previous comment: I am not an economist), half of the revenue is spend on social security: https://www.destatis.de/EN/Themes/Government/Public-Finance/...
This is weirdly out of date, I don't know why the link was to a URL from 2013 whose content is about 2017, but it says for that year, 57% was social security: https://www.destatis.de/EN/Themes/Government/Public-Finance/...
> This isn't what I said.
Indeed, it was an example of the category alone, and not even intended to imply you have that specific detailed opinion.
Thing is, the stuff I linked to are all vague large-scale groupings, and I can't dig into any of them and say "Max Mustermann from the… *rolls dice* cultural affairs department, is spending too much on… *rolls dice* trying to promote Sendung mit der Maus to… *rolls dice* the Swiss" — and even if I could dig in at that level, I wouldn't be able to comprehend the value, only the cost.
(Würde jemand sagen, "von allem den Preis, von nichts den Wert", oder ist das nur die Uberzetsung des Oscar Wild Zitat?)
There's 2.713 million unemployed.
552.89 euros per person per… year? Even per month that does not seem unreasonable.
https://www.wolframalpha.com/input?i=€1.5+billion%2F2.713+mi...
1.5billion per month is the salary of 300.000 office worker. So Germany needs 1 person to manage 10 persons … so why the fuck does it take 3-6 month until they reply ? It’s , here the end of contract and give me money till I have a new job or for max a year.
A common suggestion I've heard, is that the cost of hiring someone is around twice their actual pay (things like insurance, HR, rent or maintenance on the office building, equipment, site security etc.), which means half as many case workers, and each case worker probably has 20 unemployed people.
> so why the fuck does it take 3-6 month until they reply ? It’s , here the end of contract and give me money till I have a new job or for max a year.
You could try working for them to find out? Ich vermute, dass meine deutschkenntnisse ist nicht gut genug für das.
My guess, based on all the customer support workplaces I've heard about is: 85% of the people in the system are basically fine, 10% have difficulty understanding the system, 5% are a colossal PitA who need to be constantly chased or are even outright disruptive — and most of the cost is with that 5%.
There was a right wing government in Finland before 2019 and there is a more far-right wing government since last year.
I don't like either of them for their politics, but I cannot see how they could be blamed for authorities getting increasingly dysfunctional. They have not done anything like fired 50% or even 20% of the employees.
This is nonsense. Your statement is flatly an ideological talking point in no way backed by actual practical evidence or a reasoned argument of the situation. Government budgets in most european states, (Finland included) have continuously gone up for decades and increase in complexity. A strong ideological focus on claiming "right-wing austerity" has been a common narrative despite nothing about these growing budgets matching that at all. The very idea presupposes that any current amount of spending, no matter how large, has no business being criticized at all and that it's "extreme" to argue that the state could afford to be more agile in doing better with slightly less % of GDP.
Aside from the fact that government budgets are at record levels of economic output anyhow, no, the state shouldn't just automatically have a right to these absurd budgets with any pushback being called "austerity". or "right-wing".
Driving license not much different.
For most people, paying taxes is a non-event, and tax returns happens automatically in most cases.
Then the bad: - Firearm licenses: more like months if not years in some cases. - Birth and marriage certificates: 4-6 months - Permission for building/construction/alterations: Don't even waste your time. - Healthcare: get private insurance if you value your life. - Public transport: lol
It's interesting how in sufficiently large and complex bureaucratic systems (Governments, Microsoft, etc), you get little pockets of excellence because somewhere in the mess of it all, there is someone who cares about their job, and they put the effort in to make it better for their users/customers.
In South Africa's case, these pockets of excellence are often and frequently replaced, because they are being measured by different metrics than what we as citizens care about, and deemed lacking: Party first, enable corruption, etc. So then you have these government institutions that every 10-15 years or so get renewed, and then coast on that renewal while it gradually goes to shit, before someone steps in and fixes it all up, before them being fired again for not allowing the right amount of corruption to take place. Vicious cycle.
I'm currently also an expat living in the EU. The common sentiment from a lot of other South Africans here is to go back to SA for a 2 week holiday to get your passport. Apparently dealing with anything home-affairs related via your local embassy is a total shitshow. People have been waiting years for birth certificates for new babies and such.
It seems that the intersection between Home Affairs and International Relations (embassies) is in total shambles.
Also, two Eastern European countries that I have first-hand knowledge of: Poland and Estonia are much more digitised and efficient at those things than Germany (and, from what GP wrote, it seems Finland as well?).
Moreover prior to the fall of the Iron Curtain the term Central Europe wasn’t used much. After that though some people like Milan Kundera started popularising it much more out of sense of inferiority.
Estonia belonged to the East, even though not voluntarily.
They actively left the Eastern block when they had the chance (like most of the others, so the block is no block anymore), but the terminology lives on, especially used by people who did not suffer from it.
A couple of years I went to a technical event. The event T-shirts were red. Someone from an "Eastern" country felt very negative about that: "We had communism, I will never wear a red T-shirt."
Those in the "West" who don't have the history of suffering don't have any strong feelings about those old things. Many of those who suffered (either personally or at least in stories from their parents) can be rather sensitive about such "mistakes".
Should be a big brother nightmare for all humans.
Your number is 666.
There’s always a lot of hand-wringing and FUD around giving people ID numbers, but never a coherent rational argument. What makes it a big brother nightmare for all humans?
There are many still alive who remember the evils done by the Stasi, when I was a child, there were many who remembered the evils done by the Gestapo; when those are your core examples of a citizen database, such thing naturally seems "big brother".
The irony is the mirror image: America seems almost* totally willing to have private databases while disliking government ones, Europe seems almost* totally willing to have government databases while disliking private ones.
* to anyone about to reply "not I": don't be blind to the "almost", I know many here will be exceptions
Really? For what purposes exactly?
And you think that those fine granularities are really needed?
Your argument boils down to “let’s purposely make our government inefficient because it might one day turn on us”
Which, judging from other countries, is actually the opposite of what happens.
The worst offenders of human rights and government overreach are the ones that don’t have their shit together.
But for what do a drivers license database, social security numbers exist? And why should a country/state know your bank account number(s)?
Etatism is cancer.
To keep bad drivers off the road? To suspend privileges when you kill someone with your car?
Social security numbers were originally created for linking people to their social security accounts but has now become our national ID because there is an inherit need for one in the modern world. The problem with SSNs is that they were never designed for their current use-case.
> And why should a country/state know your bank account number(s)?
A state will always have access to and the capability of seizing your account funds. This is a necessity for a multitude of reasons that I can list out, but I'll let you use your imagination.
Take a look around the world. Take a look at history. Autocrats don't need an efficient ID system to take control of their citizens. People willingly give up their freedoms and align themselves with autocrats when they use the same propaganda and fear-mongering tactics that have been used for centuries. It has nothing to do with the government amassing a database of their population. Once the autocrats are in control, they will create whatever system they require.
The only way to avoid tyranny is to fight for liberal values at the ballot box. Anything else is bullshit. Your guns won't do shit when your local militia is aligned with the autocrat in control.
A document is not sufficient for that? Doubt it.
> Social security numbers has now become our national ID because there is an inherit need for one in the modern world.
Why?
> A state will always have access to and the capability of seizing your account funds. This is a necessity for a multitude of reasons that I can list out, but I'll let you use your imagination.
But not one good reason. For law enforcement, there are other possibilities.
> Take a look around the world. Take a look at history. Autocrats don't need an efficient ID system to take control of their citizens.
But pseudo-democracies do.
> The only way to avoid tyranny is to fight for liberal values at the ballot box. Anything else is bullshit. Your guns won't do shit when your local militia is aligned with the autocrat in control.
No. The only way is to send politicians with their political idiocies to hell and establish direct democracies. When the people have to participate in the organisation of a country/state (or better in a cooperation of peoples; is there really a need for geographical limits?), and discuss the distribution of resources, instead of just balloting from time to time for one or another political idiocy, don't you think they could make that way better than the current systems?
actually that's not true: people in Germany have MANY unique IDs: they have not one but TWO tax identifiers ("Steuernummer" and "Steuer ID"), social security number ("Sozialversicherungsnummer"), national ID number ("Personalausweisnummer"), passport number ("Reisepaßnummer") and health insurance ID ("Krankenversicherungsnumer"), among others.
We've been arguing with authorities, send hundreds (not an exaggeration) of papers to different involved parties, but still, one and a half year after purchasing a bit of real estate, we are not even allowed to start building. This includes dozens of funny anecdotes, an example would be changed rules for the width of your fence gate - meaning that you have to scrap the old one and have someone build a completely new one because it was 3cm (!) to narrow. Of course, it would take weeks after applying for the building license before any of their concerns would be communicated to us.
I don't think digitalization would solve this. If you have a shitty process and digitalize it, you have a shitty digital process. I do think arbitrariness of the people involved at the government offices and the time it takes them to react is way more of an issue.
If you just give me a bunch of paper to fill in, with actually understandable instructions, that's fine. Digitalization would save me a day here because I'd get it directly, but that doesn't really help if it takes six weeks for the clerk to actually react.
Neighbouring country here. The clerk has to react within six weeks, but to satisfy the letter of law, the reply is "we received your requeat and it's being processed"
The actual reply takes ~6 month.
True. And not only for Germany
(The Netherlands might be a good second choice as well)
If you immigrate to Germany then you need to instantiate yourself in the German bureaucracy everywhere at once, and that bureaucracy has a hostile indifference to the concept of immigrants.
Have you ever changed cities and needed to change Finanzbehörde? Have you ever registered for driving school? Have you ever tried changing from one driving instructor to another? Have you ever got married in a district where there are no appointments for marriage? Have you ever been unable to take your children out of school to attend a family funeral in a different country? Have you ever purchased a car in a State different from the one that you live in? Have you ever had to experience the nightmare of applying for unemployment money? Have you ever tried picking up your child's sick notice without their insurance card, but just only your own ID?
I could go on and on... Not all of these are on the same level of annoyance/senselessness but there are countless more examples. The bureaucracy and stiff insistence on following processes and rules at the expense of common sense are everyday occurrences.
In my experience what is most amazing is how most citizens of this country just accept this and don't find it unusual.
What's so difficult about that? That was 10 minutes long process for me. I changed cities so I had to change the driving school as well and there were no issues at all.
> Have you ever tried changing from one driving instructor to another?
I haven't but my school encourages people to do that if they find that they don't click with their instructor.
Not arguing with the rest though.
However, I read several more recent stories where parents in the UK got into trouble (had to pay fine, or got in contact with the police) because their kid did not attend a few school days, but with the parent's consent.
Both countries have mandatory school laws.
> In my experience what is most amazing is how most citizens of this country just accept this and don't find it unusual.
Most Germans are obedient to authority, which seems one of the main reasons why the holocaust could happen (read about Milgram's 1961 obedience experiments worldwide, Munich "scored" top on this sad metric).
Also, people that have only lived in one country don't know it any other way. Perhaps everyone should move to Estonia for a year to open eyes...
I really do not get these complaints at all. Even Taxes can be filled out easily with a pretty good online form. None of the bureaucracy ever happened to me, except it is annoying to book appointments. The only things that need addressing are the chronically understaffed government offices and the ridiculously high taxes which are constantly being wasted on utter nonsense.
Any process around immigration seems pretty awful, just based on the overwhelmed and (often) unhelpful offices (based on reports from the former friends again).
On the other hand, buying and registering a car was quite easy and possible online, besides picking up the car at least. (With some caveats though. Wanting an electric license plate at the time needed me to go by in person to show them the certificate of the car.)
This is why I never really covered studying or raising children.
German bureaucracy is hyperlocal. I rely on more and more on a local network of experts to do a good job. In Munich I'd be mostly starting from scratch.
However most of the website covers all of Germany. A smarter person would have started All About Germany, if only for SEO purposes.
Basically it's the German-grade paper bureaucracy described here, but spiced up with a truckload of what i would describe as "negative global southern stereotypes":
- Everything has to be strictly processed by the book, but ... - "the book" closes Friday at noon, no wait, today it was 10:00, come by next month, we only process such requests on the first friday of the month. Oh wait, Mrs Soandso is on vacation next month, would June suit you? - the one managing "the book" doesn't like your face/surname/tone/something? You might wanna try another city ...
In short: it's all strict and utterly beaucratic like you'd expect in Germany, but at the same time ripe with small time corruption, incompetence, and petty xenophobia
(Small anecdote: I actually once had to get a lawyer to register a company, since the person responsible for my file at the business court thought my surname was sounding a bit too "foreign" and demanding I present a valid staying permit -- which I do not need (and therefore couldn't even get) in Austria. Straight up refused to process my filing until my lawyer requested a legal statement in writing)
A solution for this in my opinion would be to centralize these processes and make them online, like making a government portal for the whole country. But for that many rules should be changed, which is highly unlikely.
[0] https://www.tagesspiegel.de/berlin/zwei-jahre-warten-auf-die... (German)
The processes are going to be online, this is mandated by law, it will take years, but it is being worked on (some are already available online). They will still be provided by the respective municipality.
See also: The Checkpoint Charlie scene from the 1985 movie Gotcha!
There are good and important reasons certain public institutions aren't allowed to share data by default but instead of making that data sharing opt-in, it's completely offloaded to you personally.
Kindergeld is a fantastic example of bureaucracy that could be abgeschafft.
Of course because the FDP conveniently forgot that its "Bürgergeld" was supposed to be a form of UBI and decided to simply rebrand social welfare (aka Hartz IV) instead, we're now in a perverse situation where the thing that was supposed to be a universal basic income is instead very much not universal and even takes Kindergeld into account if the child is part of the household.
That said, turning the Kindergeld into a UBI would also mean abolishing the Kinderfreibetrag which acts regressive (i.e. in effect, higher income families receive more benefits per child than lower income families). It would also make it easier to justify closing the loophole of migrant workers collecting child benefits for children in their home country given that a UBI could reasonably be restricted to national residents rather than all EU residents (which is the concern with limiting child benefits the same way).
"ING: You need German permanent residence or citizenship to open an account. Some students could open an account with a residence permit. Their customer support speaks English."
Can you tell me more? When and where did you open an account? What residence title do you have and what is your nationality? Feel free to email me the answer if you prefer privacy.
Opened end of 2022, fully online. I have italian citizenship; my residence title was just... resident? I had the Anmeldung for the apartment I was living in.
But it wasn't all easy. I needed:
- A german telephone number.
- A document (with a MRZ) with my german address in it.
- Not sure but maybe they also asked about my job?
The document was critical for me; I had to go to my embassy and apply for a new id that had my german address.
Also everything was fully in german, no english whatsoever.
A few other people I know who left after a couple of years say the same - endless bureaucracy and extremely dysfunctional local governance (eg: the clusterfuck with rent control where some people had to pay backrent) made the decision to leave easy.
My wife is Italian and wanted to get married in her small home town. In order for her to get married to an American in her home town required paperwork that bordered on the Kafkaesque. We had to show up at the Italian embassy in Washington DC (fortunately we live there!) with proof and witnesses that I was not already married, plus another ten pages of forms. We had multiple stages of notorization. And we had to have forms signed by other witnesses vouching for the truthfulness of our witnesses. In Italy we had to draw up a long declaration of vows in italian -- in Italy, a wedding is a contract -- and then even though I wrote the vows myself in Italian, just because I am American we had to have it translated by someone else back into English, by hand, just so I understood the vows I had myself written. We then had to contract someone to read the vows out loud in English at the ceremony so I understood my own words.
At every step on the way, the bureaucrats apologized for the bureaucracy and asked us the same question, over and over and over again: "Why don't you just get married in the US?"
Don't get me started on the *hilarious* complexity of getting a Permesso di Soggiorno (sort of an Italian Green Card) this year. I applied this past July and there are still more steps to do.
I badly want to learn the historical reason for this insistence that non-Italian-speaking foreigners must understand the contract they're entering into. They wouldn't put up these hoops to jump through unless someone's gotten badly burned in the past, right?
There are probably all kinds of tricks you could pull by being married for a bit, then declaring the marriage false all along, but not going through the official divorce process.
Requiring both parties to prove they understand the contract is probably more cost-effective in terms of, well, cost - and time - than it is to actually go on to litigate things.
Turn the situation around. Rich Italian imports wife from poor country, … easy to imagine how that can lead to all sorts of bad situations. It’s one of the ways human trafficking for prostitution happens.
It's not like places where weddings take place are conspicuous enough that you couldn't tell the difference between them and a normal govt agency, and it's not like people don't know it is a very bad idea to sign documents where they do not even understand a single word.
The paper trail of a vanilla (let alone international) marriage is already big enough that I doubt criminals would want that, unless they have corrupt officials assisting them, which is a problem these measures do not address.
The laws are there for people who may feel like they don’t have much choice in the matter. And yes lying to officials that you did in fact have a choice and are totally doing this of your own free will and yes of course you understand the document you’re signing is a big part of it.
This is similar to how some pregnancy related health clinics have things like “Sign the sample cup with blue pen if all good, use the red pen if you’re being forced to be here”
Oh, neat, I'd ever heard of that before.
Are you a native Italian speaker? If not, this makes perfect sense. It is routine for someone to attempt to say one thing in a foreign language while actually saying something completely different.
I can see how a non-native speaker might get themselves in trouble. I admit I have no idea what the correct solution is but I don't think this is it.
The vows shouldn’t matter.
Had to get my Greek marriage documents translated as well.
Because most countries don't have that sort of document (including the US), you then instead need to apply to your local Oberlandesgericht (Higher Regional Court) for an exemption.
All the way, any foreign government documents need to be notorized by the German embassy in that country.
They don’t? I thought this was a pretty standard sort of document to get…
In any case it say that since 2021 Germany will accept a sworn oath from US residents to declare their eligibility.
Some states can give you a statement saying "This person never has gotten married in our state", but they cannot pull the records of every state. In fact, the state that I was living in could not even do that -- only individual counties could pull records saying "This person did not have a wedding within this county". There are no central records.
When I tried to use that as a record of non-marriage, it was not accepted for the above reasons. My fiancee and I needed to give a signed oath to a notary that we were not married, and take that document to the state's office to be apostilled.
https://oberlandesgericht-stuttgart.justiz-bw.de/pb/,Lde/Sta...
- Countries without a link they have no info
- Countries with a link, but are cursive, generally provide the certificate in most cases (this seems to be broken, I see no cursive ones, but the UK is among this group, which one can see when opening the link; but that seems to be the minority).
- All others they seem to suggest need to go through the exemption process.
Obviously, all the bureaucracies that require such a document also have a mechanism to issue it.
Last time I checked it is a contract just about anywhere, including the United States. Marriage rights are primarily property rights. (or "liabilities", ask any divorce lawyer).
In the US marriage involves submitting a marriage application (a short form) and appearing before a clerk. Marriage is a license from the state. At any rate, the difference in bureaucracy could not be more stark.
Germany is the hell if bureaucracy, and is getting messy.
Personally I found all germanic-country centered companies to be very disorganized in practice...
I had already steeled myself for the experience but it was still mind-numbing, until the appearance of one glorious stroke of luck.
The official in our consulate had incurred some minor peccadillo in the filling out of a form - their stamp was in the wrong part of the document, and because of that, their counterpart in Roma had officiously refused the document.
Suddenly, what had been a grinding war of attrition between us and the establishment, turned into a civil war within the machine. A principal adversary had flipped to our side.
We had serious firepower and the rest of the process was made incredibly easy, as our slighted new friend slashed through the red-tape and bulldozed our application through.
It ended with the final document being stamped at least a dozen times out of spite. I wish I had that copy (it probably rests in an aging manila envelope in the comune somewhere.)
Italy bureaucracy loves stamps.
Pharmacies in Italy work much like notaries, although they obviously provide a much more useful service. My understanding is that in part of the US taxis work the same way, with limited # of "medallions" being treated as an investment.
In California (I think other states, but each state has it's own specific laws) the fees are fixed below a small set amount.
https://www.nationalnotary.org/knowledge-center/about-notari...
From 2000 to 2020 the number of notaries in Germany had almost halved. How is that normal for any country ? Unless they replaced notaries with automation which Germany didn’t .
https://www.juve.de/markt-und-management/notariate-immer-wen...
> During Covid Germany was the
> only country of its neighbors
> that did not do remote attestations.
Same in the Netherlands.https://www.osborneclarke.com/insights/dutch-covid-19-tempor...
New Zealand doesn't have notiaries or special insurance but you do need to use a lawyer to transfer ownership and I think it costs about NZD1500 each for vendor and buyer.
The concept of title insurance doesn't exist in Germany as the Notar eliminates the risk.
There's often lots of post hoc justifications in Germany for "why it is that way" (and has to be that way). But nobody ever seems to stop and think: ok but the rest of the world seems to get by OK without these reams and reams of bullshit?
The problem with Germany is not that it is stuck in the 20th century and completely backwards, but that nobody seems to care that it is. Worse, if anything there seems to be a degree of pride among Germans of the "process". As soon as you criticise some piece of particular bullshit German bureaucracy (as opposed to bureaucracy in general, which generally you're permitted to criticise) then they start circling the wagons (often pointing to other countries where the situation is supposedly the same or worse). So it is never going to change.
I am not sure there are "countless" scams in the UK, but yes, in 10 years of commercial operation did come across a few oddities. Example - a customer (UK Ltd) who declared bankruptcy owing us a money and then then next day founded a new Ltd company and tried to act like he didn't owe us the money because it was a new entity.
See https://en.wikipedia.org/wiki/Pre-packaged_insolvency
I have not come across this kind of thing in Germany.
Oh, it does exist :)
That is... how bankruptcy works? He literally didn't owe you money anymore. Obviously you shouldn't extend his new company credit, but extinguishing old debts is the exact purpose of bankruptcy.
Corporate insolvency requires an “insolvency practitioner” to be appointed by the directors; this is a regulated profession, and this ensures that the company is wound up according to the regulations and statutes.
You cannot just “declare bankruptcy” in the UK either.
You’re insinuating that due to the bureaucracy Germany is somehow better at this; it is not, it’s just more inefficient.
There's an old movie, The Edukators, where one of the protagonist is effectively broke and working a low wage job but has spent years already and has many years more left to pay off a debt she incurred by accidentally crashing into an expensive car without insurance.
This situation is basically impossible in the US where the term "uncollectible" is used to describe such debts.
Of course it would first be covered by mandatory insurance you have to have when driving a car (if you're not legally allowed to drive a car, well, you're on your own)
For a GmbH and other limited liability companiee there are minimum equity requirements instead.
For corporations there's an entire process but in simple terms the company is handed over to an externally appointed handler who tries to generate liquidity by selling off all assets and contacting all debtors and creditors. The company might recover through the process (e.g. by finding an investor) but legally the corporation is frozen and substituted by a separate corporation that only exists to resolve its bankruptcy. If the corporation no longer has any assets, it can also be fast-tracked for being dissolved.
Is the notary able to model creditworthiness (i.e. they’re acting as a rating agency), or do they just sniff out “undesirables” by some ad hoc, unregulated process involving their personal judgement, or is it something else entirely?
Depends. This can be illegal and he is personally liable for the amount. That being said, he might have done things by the book and his previous venture is bankrupted.
https://amp.theguardian.com/business/2022/dec/03/crisis-uk-c...
Next, you would expect that the notary would educate participants and act as a source of trust, an actor in your best interest, but that is not the case. Notaries can change contracts until the last minute, and unless agreed upon, the common 14-day withdrawal period for contracts does not apply to things like buying property. Furthermore, if you are inexperienced, you can easily fall into traps.
As a concrete example, when buying a part of a shared property, it is commonly believed that the "Hausordnung" (house rules) is the owners' agreement for house rules. However, that is not the case, as there can be more, and in our case, it forbade us to keep dogs. Now, you could argue that we should have made ourselves more familiar with the law, and I would agree that is true. However, it begs the question, why do we need a notary?
So what else is that "trading platform" then, if not a "third party"?
The way in which this problem is solved is by introducing a third party that is trusted by both, seller and buyer. There's nothing wrong with this principle. What's wrong specifically with regard to notarys as a third party in property sales in Germany is that the amount of work involved in being this third party does not really scale linearly with the value of the thing to be transferred, but the system by which the price of the notaries' work is determined assumes that a property transfer is twice as laborious (and thus must be twice as expensive) if the property is twice as expensive as some other property. Which is BS.
Oh, and please don't suggest to "simply put it on a blockchain". I don't have the time to explain for the millionth' time why that doesn't work with physical properties. I consider that to be common knowledge among HN users after about 10 years of having those discussions regularly.
Also, property ownership can get ridiculously complex really fast. If just one person owns something, that's simple. But in reality, quite often multiple persons own something together (sometimes some of these persons aren't even humans, but legal entities). In that case there are a gazillion different ways in which such shared ownership can be implemented, with far-reaching implications with regard to what will happen if people disagree, split up, modify or sell the property further down the road. You cannot simply model this complexity with an SQL database because it involves legal contracts that specify the details in which a properties' ownership is shared exactly. And the notary is actually responsible in such a case to write these contracts, ensure that every participant knows about their role and rights within these contracts and isn't shortchanged.
Link to an article about this case (in German language, unfortunately): https://www.t-online.de/region/berlin/news/id_91147122/berli...
The way I learnt it, until now, is the following:
the person you are contracting is there to perform a single specific task.
Applied to the specific context: "Notarvertrag", it means:
the notary is there to perform the notarisation (basically to read and write the contract), making legal whatever YOU are asking to do.
Any additional thing:
- you ask him/her
- you ask someone else beforehand (so yes, you need to pay an additional session for help)
And even then, you not always get what you wished for. And when s** happens, .... "that's life experience"....
(Title insurance is where you must buy insurance when buying a house to guard against the risk that the house may have unknown liabilities or owners)
It doesn't exist in Sweden either, because the ownership of houses is in a central register. You can't make a claim against a house if it is not registered.
Funnily enough, there's no such register for condos in Sweden. So you can end up with a nasty surprise if it turns out you bought a condo that there were unknown bank loans against. But it doesn't happen often enough that there is title insurance against it.
Was this in Sweden? In that case, I have heard of cases where a condo that someone bought had an unknown bank loan taken out against it.
The bank loan is still attached to the condo even if it changes owners. The bank can force you to sell the condo to pay the loan back to the bank.
You can then turn around and sue the previous owner who took out the loan. Good luck with that.
I don't think this happens very often and usually the condo association knows which loans are taken out against which condos.
I'm not sure what a condo is, but if it's a 'bostadsrätt' then you check with the 'bostadsrättsförening', they're responsible for keeping a register of 'pantsättningar'.
1. Most startups now create an UG which has most of the GmbH benefits and protections, but only negligible cost.
2. The handelsregister website is deprecated. It's replacement is quite nice and fast.
Their section 2b also doesn't apply for UG because it's so cheap there is no need for trickery.
Their section about issues finding a bank seem weird to me. I just took the paper slip from the notary office and walked over to Deutsche Bank (the largest mainstream bank) and it took them only a few minutes to set up the account. Then after the card arrived in the mail, I walked back there, paid in the money and gave the paper confirmation from them to the notary guy. I'm not sure how you could make it any easier.
The only thing where I agree is that the spam is a problem.
That's another factor when deciding whether to go for a UG/GmbH or Einzelunternehmer. That said, the costs are based on revenue so you'll ease into it, it's just another cost to be aware of.
Oh, and if you hire anyone for any editorial or creative work and they're not doing it as a UG/GmbH, be aware of Künstlersozialkasse payments (which you have to handle yourself unprompted). You'll usually get a visit by the Deutsche Rentenkasse after about 3 years for an audit and they'll be very unhappy if you didn't pay your dues.
Notaries should not exist, and could be replaced by a simple website.
It's all incredibly tedious and slow, and there are lots of reoccurring work and fees. Closing a company takes 2-3 years too, even if there are no irregularities.
Soon you'll be able to use a credit card in most shops even!
Sorry to hear it's still the same.
We don't appreciate its meaning anymore, but cash is literally the only anonymous payment method you can have in this lifetime, and people in Germany tend NOT to trust any entity/company/government holding your data for no particular purpose.
The downside of this is the split brain problem that you have with distributed systems: a state knows something about you that another state maybe doesn't, which leads to "interesting" things like illegal people having multiple identities in several states, etc. Weird s**.
Being free to dodge the tax man is incredibly valuable for small business and individuals in Germany as a lot of wealth is built on tax fraud. That's the kind of privacy people mean.
The people who are very vocal about (data) privacy in Germany (which are quite some people, though not all) indeed typically try to avoid such services.
And there's a difference between being vocal and actually walking the walk and doing anything about it.
Germany has 80+ million people. Having nobody on Instagram/Tiktok would be unthinkable.
However, historically speaking, this hesitation to have privacy over "convenience" is implemented still everywhere.
You can't just minimize it with "people want to evade tax", although it's also true.
Exactly.
This is the eperience from two dicatorships on German soil in the 20th century of which one ended less than 35 years ago (many of its crimes still have not been prosecuted). There still exist lots of contemporary witnesses who can tell you what being potentially be surveilled means in the day-to-day life.
In comparison to the NSDAP and SED, I think calling the 15 years of CDU government under Helmut Kohl (which actually ended a bit over 25 years ago) a dictatorship is a bit too harsh... /s
I fixed my mistake. :-)
East Germany (ended in 1990), Third Reich (ended in 1945), German Monarchy (ended in 1918)
That's some level of f** up.
No wonder that cash is the only accepted payment method in a world that tries at all costs to sneak into your private stuff.
At the same time, they had an early form of mobile Internet since they year 2000 (when most of the West didn't have internet at all, let alone mobile internet): https://www.wired.com/2000/06/its-a-wireless-world-in-japan/
Japan is ranked 4th/20th vs Germany's 23th/35th for mobile/fixed internet speed, so much better overall (and anecdotal evidence is that internet in Germany's countryside is rock bottom).
So Japan rather seems to me to _want_ to do their own thing (at least when it comes to preference for cash, although I agree that still faxing things is strange), compared to Germany which _cannot_, for various reasons.
[0] https://www.stuttgarter-zeitung.de/inhalt.stuttgart-album-zu...
Not sure where you people live, but this myth has to stop, eventually. I can literally count on one hand the n. of shops NOT accepting cards - it's most of the times shops which, I guess, use cash to have flexibility in their accountings :)
But actually a lot don't, and when you try to pay, even contactless, with a non-Girocard, it won't work.
Visa and Mastercard don't magically let you on their network because you have a card machine.
The bigger mystery is why stores in some other countries are happy to have a payment method chosen by the customer eat into their profit.
In particular, I was staying in Nordhausen for work for a couple weeks. The hotel I stayed at tried to refuse to accept that I paid by card online in advance. Every small restaurant I went to refused to accept either a credit or debit card, and only a couple chain (read:overpriced) restaurants would accept Mastercard. When I tried to buy an Ethernet cable at a general store they refused to accept anything other than cash once they realized I was a foreigner.
Maybe it’s a myth in large population centres, but definitely not overall. I had roughly the same experience throughout most of Thuringia, with even gas stations in certain areas only accepting cash.
This is basically wrong. They moved the budgets to different departments, where it made more sense. And it actually does move on..slowly. It's basically a living example of too many technical debts and the pains of federalism gone wrong.
> Soon you'll be able to use a credit card in most shops even!
Real credit cards are very uncommon in Germany. Debit cards on the other hand are working well everywhere, even in small shops (since the pandemia to be fair).
Not yet. There still exist plenty of cash-only places. In my neighborhood (P-Berg, Berlin) both nearest restaurant and nearest coffee shop are cash-only.
It's our failed state, so what do you expect?
?
In practice, it is not possible because you need to register to a local tax office of the worker. Spanish employee -> need to register your company with the Spanish tax office.
Good luck unless you can afford expensive legal services that do this for you. Does not make a sense unless you are planning to hire in quantity (>20 workers).
The alternative is that every remote worker is a subcontractor and takes care of their own taxes.
In Germany the pension insurance (DRV) will come around after a few years and demand a six digit figure from both your company and the employee, plus interest. You can also end up with criminal charges filed against you.
From my point of view there are also not many fees and none of them are recurring. IIRC, you have to pay the notary, the registry and the tax office for services rendered. Once you are registered, there are other fees, e.g. IHK (trade association) membership or insurances, but that is not part of the registration, that is cost of doing business.
Liquidation on the other hand takes 12 month (a transitory period required by law) and a few weeks before and after the liquidation for notary appointments. That's it. All in all it took maybe 18 month from decision point to deletion from the registry and the main part of the extra 6 month was deliberation what needed to be done before the transition started.
The relevant keywords for research are "Vorratsgesellschaft" or "Mantelgesellschaft". The former are empty companies with no business activity, the latter are older companies with business history but inactive now. Mantelgesellschaften are nice because they bring a credit history along making stuff like leasing easier but cause a little bit more effort at time of purchase.
One more thing I'd recommend doing before going to a notary though is get a "Vorabstellungnahme" from IHK to ensure that they won't reject your company name which would create delays and additional notary cost. It costs some money, but is worth ensuring it doesn't cause chaos afterwards.
1. Get "Vorabstellungnahme" from IHK, takes a few hours.
2. E-mail notary (yes I've worked with them a couple times, that might speed up their response time), get pre-fab founding docs within a few hours, appointment next day. Digital version of the founding docs will be available within a few hours.
3. Create account with Qonto or something equivalent, there's an explicit configuration for your notary email, so they will take care of providing proof of the starting capital.
4. Transfer starting capital.
5. Notary hands in Handelsregisteranmeldung, sends you a copy and upload it to your bank.
In practice, I find the founding process not complicated, but the day-to-day operation, bookkeeping, taxes, etc. way more painful.
Founding a GmbH wholly owned by a Delaware C-Corp, however, is intensely painful, practically no bank wants to work with you, and notaries aren't enough, you need to work with apostilles (international notaries). I highly recommend working with a law firm to set this up correctly but expect easily upwards of $10k between lawyer, apostille, and bank account costs.
When it comes to founding a company the author overcomplicates things, however. This is OK when you want to study the process, or want to become an expert in this and maybe make a business out of it.
If you just want a company get started, just buy a ready made one. There are specialized lawyers that always keep a pool of freshly founded companies to sell - exactly for that purpose. These companies are brand new, usually just a couple of weeks old and have no significant history. They have generic names and you can decide on a proper name later.
If you don't have anyone to advise you and insist finding a suitable lawyer on your own: Go to Germany's central company register (Handelsregister) and research startups in your field. The lawyers and law firms specialized in selling new companies will stick out pretty quickly to you.
You shouldn’t complain about the process of incorporating and buy a ready made one?! This is just encouraging middlemen and lessening pressure on the government to actually work for your money!
I’m guessing you’ve never tried incorporating in a country where it actually makes sense and you can get going for cheap in a matter of days.
L.E.: Having worked with germans and german companies for a long time, I think this permanent mentality of making up excuses for why rules are this way (they must be Perfekt!) and blaming the people trying to follow them for not doing it right is one of the key things that’s holding you all back.
I’ve bickered so many times with germans and their bureaucracy in company processes, after years and years I just decided to give up (I was never going to make any difference, just hurt my own sanity) and I try to avoid german companies now.
The frustrating thing is that there is no way of learning about it until you’ve already endured months of pain trying to follow the impossible steps outlined on the official government website.
If that site had a little notice on top saying “Stop! Nobody does it this way! Google this term instead”, that would save a lot of pain.
The mythical "European state" where everything works the same does not exist.
Basically, the system works in general for the average population but is broken such that it affects most those at the margins (for example, the rich, the poor, those entrepreneurial, etc).
In other countries, when this happens, you see the rich paying their way to access while the poor generally suffer until some populist movement comes and promises to save them.
It's thus really not that surprising, I just had yo change my view on where I placed each country in this developed/developing country mental model
As far as I can tell, this is not an option in Germany, certainly not cheaply. Healy, one of the global companies that does this kind of thing, wants €14000 to create a GmBH for you, and I'm pretty sure that doesn't speed up things, it just makes it somebody else's headache.
Nobody thinks that. Everybody knows how much bureaucracy sucks, and everyone regularly rages about the insanity and traps. There are whole TV-Shows about the bullshit done there. But people can't change it, so they just accept it, and know it could be worse.
I can get an IRS EIN (tax ID), register an LLC, obtain a sales tax license (only required for selling stuff), and open a business checking account in about 2 hours in Colorado. Someone who knows what they’re doing and doesn’t spend time researching banking options could probably get it all done in 30 minutes.
Alternatively, a legal services company will do it all for you for about $500. If you have partners and want multiple shareholders, the price jumps to about $1000, but you can also do that on your own.
I am generally suspicious of rhetoric like "you're a little well off, so we can heap arbitrary amounts of bullshit on you and you shouldn't complain".
They can open an Einzelunternehmen (sole proprietorship) instead. You shouldn't (and cannot) go all the way to the complexities of a GmbH (LLC) if your company is that tiny.
> But also many ordinary inexperienced people can have that amount of money up front, yet still be deterred by the complexity of a 6 week long incorporation process as described in this article.
Back to my point then. If they're not ready to put up with okay-ish bureaucratic friction in the founding phase, they're not ready to open a company. Because if you think opening the company is hard, wait until payroll or tax season is upon you.
> I am generally suspicious of rhetoric like "you're a little well off, so we can heap arbitrary amounts of bullshit on you and you shouldn't complain".
You're completely mischaracterizing what I said. Don't do that.
Sole proprietorship doesn't have liability protection. That's not a small thing.
>You shouldn't (and cannot) go all the way to the complexities of a GmbH (LLC) if your company is that tiny.
"[Thing] is too complex, don't bother with it" is not an argument against making [thing] less complex. It's actually just a restatement of the problem!
Other countries make it easy to set up a limited company. UK, US, Singapore, they're all just a token fee and a handful of forms. I see no reason for Germany to make it so difficult as described in the article.
A lot of successful companies were started by broke college grads out of their dorms; they would never have gotten off the ground if they had to scrounge together the equivalent 25k euros before even getting started. Hell, I don't have a spare 25k lying around and I've been working full time for 4 years.
With this mentality, it's actually a miracle a German startup scene exists at all.
The _last thing_ a founder wants is to wade through useless bureaucracy when there's a product to push and Vacs to talk to.
But Germany never really was a founder's country, and much more ruled by big conglomerates it seems or small family business who did non-innovative things (the bakery at the corner - necessary&nice, but not innovative), than startup culture.
When my wife started her current business as a consultant, she was living off her savings from teaching high school. If you think every entrepreneur has €25k of capital, you need to reevaluate what your country thinks of entrepreneurship.
You can get the simple company type (disregarded entity) and all the advantages of limited liability with an LLC.
What would you need to mess up to be liable for huge sums as a single consultant company?
Imagine if you’re a consultant and for whatever reason, you get sued or worse. That’s what the LLC is for.
Suppose you find out your cvs editor infringes on a patent and you’re liable. Suppose some business suffers data loss and sues. These things do happen in Europe too.
Also, it’s just a matter of professionalism. A sole proprietor isn’t very professional and many medium-size businesses won’t do business with sole proprietorships.
Germany insolvency can take a decade, make getting a flat or even keeping your bank account a challenge and rarely results in debt relief to boot [1].
[1] http://www.privatinsolvenz-hilfe.org/en/german-bankruptcy-la...
If you are selling Hot Dogs, nobody will bat an eye if it’s a UG, but if you apply for a big software contract, people might be wary.
It seems to me that a sole proprietorship would do more to protect against counterparty risk, i.e. more of the person's assets would be available to satisfy the debt.
My guess is that counterparties prefer a limited liability partner to arguably insulate themselves from employment liabilities.
In theory, you can do the notarization online, but when I attempted to do it, the first notary did not even reply, and the second one told me: “The system is currently down. I would need to come to the office.”
In the US, you can just use Stripe Atlas or similar services, and get everything done for $500 in a nice digital interface within 2 or 3 days. But even if it took 2 weeks, it wouldn’t matter much because one doesn’t have to put time and energy into it whereas in Germany you have to contact people, coordinate, etc…
The friction that you seem to like has almost certainly cost Germany a good deal of jobs from people who decides that the hassle just wasn't worth it.
Each little step of friction discourages some entrepreneurs and adds barriers to entry for incumbents to prevent competition.
And just in general, not doing something very often is not a valid reason for making it needlessly expensive and time consuming.
It’s on law enforcement and regulators to counter fraudsters. Ordinary citizens should not bear pain because of them.
Anyone should be able to start a business, reasonably easily and cheaply – I feel it's a matter of basic freedom and liberty: you should be able to do what you bloody well want with your life, including starting a business. Basic protections to prevent the most egregious of abuse is fine, but mostly it's just about registration and paperwork.
Having to pay tens of thousands of euros for limited liability so you don't risk getting completely assraped if your business fails is how you keep the poor plebs in their place. All of this is classic "one set of rules for the poor, another set of rules for the rich" type of stuff.
On the other hand, an ordinary individual considering starting a new business, perhaps only a few times in their lifetime, may indeed be dissuaded from pursuing this venture.
This issue mirrors the inefficacy of anti-money laundering policies, which, while intended to curb criminal activities, have a negligible impact estimated at merely 0.1%; but the global cost of implementing these policies exceeds their benefits of two orders of magnitude (see DOI:10.1080/25741292.2020.1725366 for details).
https://www.tandfonline.com/doi/full/10.1080/25741292.2020.1...
If you’re an entrepreneur AML will cause you nothing but harm while the rich avoid it through the caribbean, Luxembourg, Monaco, Switzerland, etc.
And you probably won't do it that fast anyway. But that figure demonstrates the small amount of red tape.
Starting this process should only require that they know their responsibilities, have identified themselves, and have fulfilled any obligations like payment. With government having our ID’s and login/sig/payment tech, each step should be done in seconds. Then, some fraud prevention spotting obvious issues might add a bit more time. It should still be quick.
Are you a German? :D :D
Here in the US (at least in entrepreneurial circles) it's common advice to wrap an LLC around anything that involves money. Hobby website starting to get some traffic? LLC. Selling earrings at the craft fair? LLC. I own a small building with my brother--you bet there's an LLC there. I started a $0 capital consulting company while a post-doc, just to try.
It's not a daily occurrence, but often enough that I don't want to waste time.
https://ised-isde.canada.ca/site/corporations-canada/en/serv...
For an extra $100, there’s a four hour express service.
Delaware courts are also efficient, which makes litigation less likely to turn into a multi-year and multi-million dollar affair.
- For services that you never signed up for (there are certain institutions in Germany that can bill you for stuff you neither want nor need but they have the full force of the government behind them): IHK, GEZ (Rundfunk), Verwaltungsberufsgenossenschaft (in case white collar workers hurt themselves by typing on the keyboard...). If you refuse to pay, they can literally put you in jail.
- For services whose necessity is entirely generated by the government: 1k EUR for the Notary to read you some boilerplate text. 500 EUR per month for bookkeeping services (govt creates all these arcane rules to make sure you never want to do it yourself). Plus many legal bills because German business and employment law is a minefield and you don't want to blow yourself up.
- For tax on imagined revenue that you didn't even realise yet. Yes, the govt. literally makes things up and says "that's probably going to be your revenue this year and you owe us tax on that".
If you're a big company with large predictable revenue and departments of people to deal with this, I guess it's tolerable, but there is no doubt in my mind whatsoever why the vast majority of successful startups exist outside of Germany.
https://news.ycombinator.com/item?id=39786934#39788110
In the author's case, because he is using a holding company, his exit tax burden will be doubled!
Sadly, you cannot just leave and think it would be automatically deferred. You must apply for the deferral before you leave and the local tax authorities can ask for a security in cash for the entire amount owed. It is absolutely kafkaesque.
As with many German corporate tax matters, if you think you are affected by this, you should really speak with a tax advisor who has strong experience working with people in your particular situation. You cannot just read the rules and figure it out.
The US has an exit tax if you renounce citizenship, and it's assessed on your entire net worth. If the article you linked is accurate, this german tax seems much more reasonable.
EDIT: actually, I reviewed, and I think it's broadly similar --- treat all assets as if sold at market value on the date of exit. Thus, any deferred taxes from unrealized capital gains need to be paid when you exit the taxing jurisdiction. Although, again, if the linked article is correct, it only happens to assets where you own >= 1% of the company when exiting Germany, and all capital assets if you qualify in the US.
[1] https://www.winheller.com/en/tax-law-tax-advisory/internatio...
A tax on simply exiting the country is a very foreign concept to Americans I would assume.
Looks like the limit last year was $120k. Only 17% of Americans make more than $100k/year. Only ~5million Americans living abroad, or 1.5% of the population.
I'm sure those numbers are correlated, but I'll bet its under a few hundred thousand of people who are burdened with the tax. Even then, the benefits also are pretty nice.
Try owning a stake in a foreign company (CFC) though, that's a nightmare with often unavoidable significant taxes.
Also more and more non-US banks won't take US citizens as customers because they don't want to deal with the US's FATCA requirements.
No other developed country has these sorts of requirements for non-resident citizens.
But not allowed!
"If the Department of Homeland Security determines that the renunciation is motivated by tax avoidance purposes, the individual will be found inadmissible to the United States under Section 212(a)(10)(E) of the Immigration and Nationality Act"
https://winheller.com/blog/en/no-more-immediate-german-exit-...
(What I find concerning is the attitude of the German tax authorities in their continual attempts to strengthen and increase the scope of this law. They are always trying to broaden it leaving it to individuals and the courts to push back on them.)
Source: https://de.wikipedia.org/wiki/Wegzugsbesteuerung#Derzeitige_...
https://blog.therealitaly.com/2015/04/16/fixing-italy-a-litt...
How many days of wages is 12,500 for the average worker? In the US, even for someone making minimum wage, you could pretty quickly cover the costs of forming an LLC, let alone someone making more.
That's the entire point. The concept that any idiot can start an LLC with no collateral (which the 25k are) is completely, absolutely, mind bogglingly bonkers to us Germans. Sounds like a scam imo.
no wonder you guys fell for Wirecard
good thing the EU/Eurozone/EFTA/EEA lets anyone do business with a business entity registered in any member state and accept SEPA in any regional currency
so some microstate with competitive laws and more egalitarian access can circumvent Germany’s exclusionary hurdles
But I'm glad Luxembourgh, Estonia and others do things that mirror new world novelties, while remaining easier to bank in the EU with than non-EU entities, and look familiar to EU residents.
It effectively puts the entire country into a position where unless a citizen is born relatively wealthy, they have to perform labour for someone else for several years while they save up enough to start their own business. Who does the system benefit? What is it preventing? Why has the sky not fallen in on the UK with a near identical economy, but near-zero cost ltd company startup fees?
With an LLC, the company is only liable with the capital that it has, and if it has none, then it can scam people with impunity (there can be criminal charges if there's outright fraud, but you won't win any money in a civil case against a company that scammed you, if the company has no money).
Yup that's pretty much the idea. If you think that's unfair, oh boy, wait until you hear about our infamous trade schools and apprenticeships.
Though you're right, incorporation doesn't shield from scammers. We as a nation fell for Wirecard after all.
Got any stories to tell? ;)
Sure the thread is about limited-liability, but parent argues as if non-wealthy people can't form businesses, which is not true.
It means that as soon as you screw something up or just get unlucky you might not only lose your business, but your personal savings, house etc.
Uhh, what? Have you never heard of UGs? That is, 1 Euro GmbHs.
Here is the law that regulates GmbHs, with the paragraph specific to UGs:
https://www.gesetze-im-internet.de/gmbhg/__5a.html
Where in the GmbH-law do you find anything to support your claim?
Though I have to admit this was 10 years ago when I looked into it. I remember there being a lot of fearmongering around starting an UG back then.
If a UG with 1 euro in share capital has a large equity, low expenses, and is run prudently, then I don't think the CEO/shareholders are personally liable if the UG is sued for a million euros and must pay that?
Both a GmbH and a UG have a "share capital" (Stammkapital). It is at least 25 000 euros for a GmbH, and 1 euro for a UG. On day 1, this is also the equity (Eigenkapital).
If the company makes profits, that will increase the equity. The equity makes it possible to keep spending money for a while even if the cash flow is negative. A 1 euro UG can in theory have 1 million euros in equity.
In both cases, the CEO is legally obligated to start insolvency proceedings immediately if it looks like the company can't pay its bills or loans any more. This is also required if the equity goes below half the share capital (same as in Sweden, "kontrollbalansräkning").
> if the initial Stammkapital for an UG is too low, it then is seen under constant thread of insolvency under the law
I don't think it's that simple? To begin with, it's the equity and the cash flow that matters, not just the Stammkapital (share capital) by itself. A UG can start out with a very low share capital, but if it has no expenses and a positive cash flow, then insolvency is not a risk, right?
If the cash flow suddenly becomes negative, for instance by losing a big client, or the main product suddenly can't be sold any more, then even a GmbH can be under immediate threat of insolvency. The 25 000 euro in share capital is nothing compared to salaries for a bunch of people, plus an office lease agreement that runs for another couple of years, etc.
So if you're operating a GmbH with employees and an office, then I'd say that it can be "seen under constant threat of insolvency" if it only has the share capital available as equity (or worse, just half of it), and the future income is very uncertain. So both a GmbH and a UG can put the CEO in jail if he plays it fast and loose.
I can definitely see how it is easier for a UG to get into insolvency territory, and above all, people running UGs aren't as familiar with the rules and pitfalls.
I could be wrong on some things? I'm interested to learn more in that case.
Funfact: you should always use the full title, Companyname UG (haftungsbeschränkt) on all communications and contracts. Emitting the 'haftungsbeschränkt' or shortening it 'haftungsb.' may make you as a CEO personally liable for damages occured.
Not to mention that the minimum capital requirement is unlikely to deter any determined scammer. All you're really doing is making life slightly difficult for scammers who can't scrape together €12.5k in capital, while simultaneously also making life hard for all the legitimate contractors and (would-be) entrepreneurs who can't scrape together that amount.
Regardless, most laws around incorporation in Germany are a deterrent to any founder, I agree, but I honestly think we don't want this as a society. German culture is about work, and working for _someone_, not starting your own business.
I agree it could, and should be easier, at the same time you won't change a system that evolved from medieval trade guilds.
I wonder how Germany will survive the 21st century, where a key part is to make/capture a market first by some innovation that comes out of some startup scene (Silicon Valley most prominently) and push out all the other players.
German's in tech spheres keep complaining that they are being "ripped of" by the Anglo-Saxon space, but it seems to me it's actually their own mentality that is holding them back.
And of course everyone knows the story about the mp3 format, apparently invented in Germany and monetized in the US
https://www.firma.de/en/company-formation/what-is-a-ug-haftu...
In my case, I burned through about 2500 euro in the first year just on stuff like that for a holding company that holds shares in my actual company. It takes about 4-5 months to get most of that behind you. Yearly running cost are about 1000 euro (accounting, recurring fees, etc.).
It seems to be aimed either at well established business magnates who want to open yet another business (and 25k€ is nothing in that case) or small bakery-on-the-corner businesses who will go for GmbH anyways (and hence no reason to cough up 25k€).
There's no path that explicitly caters to the tech founder.
Someone correct me if I'm wrong.
On the other hand, if you are sure that you're building the next Facebook, getting the money for a GmbH together on day -1 should be no problem at all. It turns out that most companies don't make it that far, though...
This "slow grow" mindset is so typical German. No one know who the next Facebook/Meta will be - but I would guess for some VCs (not all though) it helps to show you're not some random sole trader
There is also no limit on how large a sole proprietorship can grow. While mostly held up as example for why one might not want to keep the company form a sole proprietorship forever, Schlecker scaled from a single shop to over 14000 stores near the end and a couple billion euro revenue per year.
And don't get me started on being a business owner and wanting to become a mother. A lot of women business owners abandon their companies to get hired as regular employees when they want to have children.
It is nearly impossible to find a tax lawyer that is willing to take on the case, and my accountant keeps telling me that there is nothing to do except pay up and then wait for the refund. I don’t now have, or ever had in the past, the kind of money they are demanding. The anxiety that this situation has been causing for the past year and a half (they did a similar stunt for 2023) has become unbearable - I am threatened with personal bankruptcy and jail time for taxes I don’t even owe - and I often consider the easy way out.
I recently had to appear, in person, at the tax office (I reside on the other side if Europe now, but was forced to make the trip). There are no options to send a representative. You must make declarations in person, like its 1734.
Living in Germany and running a business there is turning out to be the biggest mistake of my life.
If everything fails, I would suggest to at least make as much noise about this as possible. On social media, local news, etc. Just like a viral post is the only way to get Google support, in these bureaucratic hells an interview from a journalist might open some novel avenues for help.
I am so glad circumstances brought me to the UK, where in comparison company law is child's play, and managing my business and its taxes takes a couple hours a year at most.
Hang in there. The only way out is through.
I'm very happy to be living and building business in Estonia instead. Establishing the company is easy and everything else except KYC meeting in bank can be done online. Also in Estonia companies don't pay any taxes on yearly profits. Almost all of the government officials speak fluent English except in the case where I wanted to have company owned car. Would highly recommend this option for others too if you can relocate easily. They even changed the rules in 2023 and now even 1€ initial capital is enough.
The problem is that you need to pay taxes in the country where the work was physically done. So if you have Estonian company while living in Germany typically the same taxes need to be filed and paid compared to having a GmbH in Germany. Plus you need to also do the taxes in Estonia as well so you would end up having double bureaucracy instead.
You can read about tax agreements between your country of residence and estonia to find out more. I'm not a lawyer and this is simplification and Can even be wrong but it's the best understanding I have so far.
Most of the described steps are also necessary for a Delaware incorporation, and I found the process of incorporating a nothingburger.
1) The choice between a limited liability construct or a pass-through construct exists everywhere. My advice was always: Separate the biz from you personally, always use the non-pass-through option unless you really know what you're doing. Complexity and pain of a GmbH is identical to Delaware corp.
2) picking a new name that isn't in any dictionary is generally good advice, no matter what your jurisdiction is. We originally incorporated as SABRE Security, then years late got into a trademark dispute and had to change names. The fact that the Handelsregister can reject particularly poor names shouldn't be an obstacle.
3) I find getting riled up about the share capital a bit weird. I have never seen anyone struggle with that.
4) we can debate the utility of the notary public system in Germany, but this is hardly an obstacle.
5) Setting up a bank account with a GmbH iG in Germany is easy and quick with any of your local savings banks. These are non-profit banks with the explicit charter to help local businesses. Not sure what the author did wrong.
6/7/8) yes you need to pay in the share capital and prove you've done so, and get the reply from the Handelsregister.
9ff) yes you need tax and VAT IDs. Yes you need someone to do your books and taxes. True in Delaware, true in Germany, true in Switzerland.
All in all, the article reads super-whiny. I mean the author even complains that the notary uses your passport to authenticate you (?!).
I have been through a German GmbH, a Swiss AG, and a Delaware C-Corp with VCs, and I can tell you: The bureaucracy is pretty similar. And you will need help with taxes, accounting, legal compliance etc. And yes, it'd be nicer if all of this was simpler, fewer middlemen and lawyers involved, etc. - but this article paints things that are the absolute basics in any of the big jurisdictions as nefarious obstacles.
Yes the process in Germany can be improved a lot. But a lot of it is similar or equivalent to process in other places
> I mean the author even complains that the notary uses your passport to authenticate you (?!).
Yeah I had skipped this when reading the article, sorry it really sounds like the author doesn't know much about the basics of gov processes
"Don’t forget your ID or passport because that’s their foolproof way of identifying you"
Yes, that's exactly what it is. Your passport is official ID
The concept of declaring bankruptcy is well known in most western jurisdiction, as is the criminal practice of delaying bankruptcy. Believe it or not, in most of the developed world you can't just have a company go tits up and expect to go out of there scot-free.
> Durchgriffshaftung
I've never heard of this concept before, but from what I can gather it's a rarely applied legal practice that's defined by case law (case law is is pretty rare to encounter in Germany) and it essentially just sounds like what happens in the case of gross neglience / large scale fraud.
I'd assume so but probably most legal matters are settled outside of courts. Also looking at it the other way around, it would be pretty silly if creating a GmbH would create immunity. Indeed I doubt it's applied very often but when trying new territory regarding copyright, it's probably worth a consideration that one may still be personally liable.
That said, my point is just that UG/GmbH is overkill in many cases especially if the company isn't making any serious money. You can invent a name, go to the town hall, fill a form so you can do business with it and it's possible to legally receive payments. Founding a GbR is a quite informal thing
The English / common law term for this is "piercing the corporate veil".
Signed, a citizen of an EU state where you can create a company by digitally signing one form and paying the equivalent of $300.
The issue on the French side is more that they put the exact same excruciating procedures they had in paper online and didn't simplify too much in the process.
You'd be surprised to hear that you can do that in Germany, too. Costs about 25€ (depends on the municipality) and takes about 30min.
The blog post was referring to a very specific form of incorporation. There's not just the ones mentioned in there.
I thought that's what the article is about. What's so specific about the form of incorporation they are talking about? A limited liability company is the most basic form of a corporation...
Sole proprietorship / self-employment can be started here for around 20 EUR too, but that's not a company. Or does Germany have some other forms of companies that I don't know?
There are 9 forms of companies in Germany, only two of which (GmbH and AG [stock corporation/PLC/...]) require fixed capital and a notary.
That was part of a push to introduce standardized EU-wide legal forms for other types of businesses as well, but the process stalled and never really went anywhere after that.
Some particular aspects of company law are partially harmonised at EU level, for example insolvency law. But that's mostly about ensuring that cross-border insolvencies don't become hopelessly complicated and bogged down through parallel proceedings.
A normal simple Einzelunternehmen is trivial. I needed about 2h just to avoid the trap of the Gewerbesteuerpflicht (tip: system software counts as freies gewerbe, application software development not!), went to the "Steuerbehoerde" (local tax office) and that was it. No "buchhalter", just Online Elster 4x a year for the USt, and 1x a year for the ESt. Same as in the US or every other state. I did that in 3 countries so far. The US was easiest.
An engineering office is more complicated because of additional mandatory expensive IHK insurances and membership fees. TKK (Techniker Krankenkasse) is always better
The most depressing thing is that EU citizens don't even see any problem with that.
Apparently if you want to contact the pension insurance (Rentenversicherung) and you don't want to call them (Maybe because you don't speak german), or send a paper letter you'll have to sign up for this "secure email, but not really email" (https://en.wikipedia.org/wiki/De-Mail) service. It costs a small fee to set up (10 Euros), or a bit cheaper if you are listed in the "public de-mail phone book" (6 Euros) and you have to verify yourself through a government ID.
If you are not a german citizen you of course don't have this ID card and can't do the verification online, that means that you now have to go to one of the few places in the city where you can verify yourself for the service. Some of them are just small corner stores that usually also do postal services.
Very bizarre experience, just to get some simple answers related to your pension.
In Sweden, you can get this done in a matter of days, where you sell the shares of your corporation for the net value minus a fee of about $1000.
The numbers I have seen for external costs range in the low thousands, but maybe that is wrong?
Time is money, and government isn’t supposed to get any discount coupon on it.
Yes, time spent is a problem, but then communicate it in form of TIME SPENT, not just inflate the costs into some arbitrary number so you can make it sound worse while whining. It's dishonest.
In Sweden, you can of course also choose to dissolve it yourself, but nobody does that since it takes years, and it's pretty cheap to let someone else take care of it for you.
It sounds like the same service is not available on the market in Germany?
It seems much more popular to sell it to be dissolved since there are some risks involved with someone else using it in the future.
So I can understand if it is not very popular in Germany either to sell a company to be re-used.
What surprises me is that it seems to be a good sized market in Germany for someone to provide a service where they buy your company and later dissolve it, but the service doesn't exist (?)
The formal process in Germany seems simple enough. Just sign a sales contract at a public notary, the buyer replaces the CEO, and you're done.
Since this doesn't really seem to exist (?), I assume the potential liabilities for the buyer are so great that the service price would be much too high?
If you pay them to dissolve the company for you, they buy the shares from you and replace the board and the CEO. At that point, you're completely free from the company.
They then must take the 7-9 months needed to go through the whole dissolution process. There is a mandatory 6 month wait after announcing the dissolution to give lenders/sellers time to make claims against the company. This wait is 12 months in Germany.
There is also paperwork for the accounting, tax filings, etc.
The service takes care of all this as the new owners. Since they have done this literally thousands of times, they don't need to spend many man-hours on it. Therefore, the fee is fairly low, about 1000 dollars, of which 300 dollars are mandatory government fees.
Example (Swedish): https://www.bolagspartner.se/avveckla-aktiebolag/
So if you own a company with 11 000 dollars in the bank and no debt, they will pay you 10 000 dollars for it.
You can do everything online, including signing the contract. No need to visit a public notary or similar.
It involves setting your balance sheets to 0 (careful here, if it goes under 0 you are bankrupt and have to file for insolvency), proof through your bookkeeping that the company has no assets and no debt, submitting to the court and wait a couple days until the court signed off on it. Then the corp is gone.
It seems it would be very hard to set the balance sheets to exactly 0? What about prepaid taxes etc?
If we put Germany on one end of the scale and put Estonia on the other end, most of Europe is going to be placed near Germany. Germany isn't the outlier, Estonia is.
Also one would be mistaken to believe that these bureaucratic processes produce a better result - there's already numerous examples where weaknesses in these systems have been exploited. One recent example exploits the requirement for applicants to supply their own photos. In this case people who looked somewhat alike used computer graphics to merge facial features to produce a mid-point headshot, resulting in one identity that worked for two individuals.
I moved to Germany about 10 years ago, and my wife and I bought a house here last year. I think the money went to the seller some time in October, but to this day, we're not just yet the official owner of the property because we're still stuck somewhere in the red tape. We're almost there though though (we hope), it's just that change of ownership of a house is a super complicated multi-step procedure here that must involve a notary! Good stuff. And mind you, I'm not talking about anything special about this purchase, just a young family buying a home from an ordinary person who moved away.
(We're hoping it's only a matter of weeks now, though, wish us luck!)
This isn't an optimisation and doesn't matter unless I'm misunderstanding what is being suggested. Multiplication is commutative so it doesn't matter if you pay the taxes before or after accruing returns, as long as your goal is to get that money to you.
$100 * 0.5 (for 50% income tax) * 2 (for 100% investment return) = $100 whichever order you do the multiplication.
1. these kind of stores are technically owned and legally run by somebody who just made the paperwork and gave the finances. The people working there dont do any paperwork, and of course they cannot as they often (like in the vietnamese produce stores) dont speak german on a level that would allow to fill out paperwork.
2. Lots of smaller business actually didnt fill out anything, and surpprisingly it somehow works for them, sometimes for years, even in busy areas, i mean they serve hundreds of customers per day but never filed any invoices, only accept cash, nobody speaks german and they dont have any documents. It's fascinating. There are a lot of rules in Germany (of course) when you serve food or alcohol or operate at night or have tables and chairs, and i can tell you it's not even legal to NOT have toilet or to not have prices on the menu, but well, they still run the business, probably without even knowing all the rules.
We can learn from them I think, just SHIP IT!
Then I moved to Spain and started a company there.
Germans, your country has NOTHING on Spain when it comes to pointless, confusing bureaucracy.
Your country, your laws and rules and the application of them are BLISS compared to Spain.
>. International “startup” banks like Wise generally don’t support this, so don’t even try! You’ll lose multiple days going back and forth with their support, like I did. You can open a Wise bank account later when you’re properly incorporated.
The real optimization is not using Germany companies to begin with.
I'm a US citizen and US resident, I had some German limited partners in a small hedge fund several years back. The offshore feeder was in the Cayman Islands, alongside the Master Fund. Both had bank accounts only in US banks. (All forms with IRS and other regulators filed no problems there, good to have a business bank familiar with these things.)
Now to those particular investors, wiring money to a foreign bank with foreign transaction needs was too much for them. The US being a foreign bank from their perspective. They just wanted to use SEPA transactions and transaction instructions that they are familiar with, which are (potentially) instant.
This US citizen was able to sign up the Cayman Islands feeder into Wise for an EU bank account no problem, had SEPA details no problem. Makes it super easy to swap over to USD with few fees and wire it to the primary bank account.
Its also important to note that Wise has high transaction limits. Like $1,000,000 per transaction is the limit, its not a daily limit. so even if you get a large LP its not really a limit just multiple transactions. Not perfect, but way better than many other fintech app solutions for casual use.
Before Wise it was nearly impossible for an American to get real Eurozone banking easily after FATCA treaty was ratified. But with Wise it was pretty quick maybe 1 business day with support in their business sign up.
One point against Wise is that their Terms of Service are very restrictive. There are lots of legal activities you're not supposed to do with them.
Yes I know we can register a UG, but in the end you don't. And it is not just the share capital that is annoying it is everything else.
It literally costs 10x more to do the bookkeeping for a German company vs a UK one. Plus getting investors is much more difficult because of the notary requirements.
We used a SPV for our first round, but even that is annoying. I had some angel investors pull out purely because we are a German GmbH.
Another much closer and cheaper to run option is Hungary where company profit tax is 9% and personal income tax is 15%, still providing up to 2x higher net personal income on same revenue vs Germany.
As for your own tax residence, some countries offer shortened terms of annual stay to qualify, Cyprus offers 60-days scheme for example (that again comes with a certain set of rules to obey).
Simply put, there's a massive demand for the "i want to pay as little tax as legally possible on my IT business" thing, and many countries lined up to do it as conveniently as possible for people from all kind of places. Only country for which it doesn't work is good ol' USA, because of world-unique system of citizenship-based taxation.
Starting their bank accounts was another matter though as they wanted the pdf from above and Articles of Incorporation and/or an Operating Agreement, neither of which was required by the state. But the document itself wasn't important as my banker googled to find a one-page version, emailed me the link, I filled in my details, and printed it. :|
Now once a year, I have to go online and report my annual revenue. And because I fall under the minimum, the rate is 0% unless I file it late, then it's a $50 late fee.
Any recommendations what would be the best place to found a company for someone who's living in Germany?
You will still have to pay your personal taxes in Germany, if you reside there.
> Estimate your revenue at 0€ for now unless you have real reason to believe otherwise (do you have paying customers lined up already? probably not). That way, you only have to pay corporate tax at the end of the year based on your actual profit (vs. having to prepay tax every quarter).
This is funny. I tried to set my revenue to 0 in the beginning and the tax authority simply set it to 60k (they couldn't even tell me where this number came from). After a couple of harsh phone calls (from their end, they were yelling) they simply kept it and told me I could file a "Verwaltungsklage". Of course, they (and IHK) derive the quarterly pre-taxes from that and didn't give a rats ass if I actually made any revenue. I got my money back a year later (which got worse and worse over time). Simply kills you, If you have to pay the bills and try to route your little boat through the stormy seas. Several times I spontaneously had to credit 2-3k EUR to get my customers to shorten the term of payment.
> IHK: Domains are not allowed.
This is funny as well because my company name was a domain name. IHK noticed that and I told them (on phone w/o any proof) that it's mine and they were okay.
The rest, I'd say is batshit crazy bureaucratic but somehow manageable. Germany is just not a good spot for "some SaaS idea" or maybe not even for bigger ideas as well anymore. At least not until they radically streamline their bureaucracy (which depends on radically professionalized politics which is not realistic at this time).
PS: Founding a company made me stop believing in "Social Market Economy" (German self-label) since the taxation system and social systems allow for amazing things once you're out of the employee system.
Edit: Typos and grammatical mistakes.
I am not too familiar with the matter, only aware that self-employed people often generously use deductions and a company car to ease tax burden.
I think embedded could actually be a good discipline to work as a freelancer, most IoT products usually have a more rigid and defined development cycle than web platforms.
I currently have to change our address. Need to go to the notary. ~500€ for that. WTF...
The holding company doesn't have to be a German one
(and neither does the operating company, but you could follow this tutorial and have a holding company elsewhere)
Okay, alright, there are a lot of EU countries that are quite a bit better in this regard. More generally: Do your research, shop around, and move to opportunity!
Of course, the immigration question wouldn't matter for other immigration situations like holding German or EU citizenship, German permanent residence or EU long-term permanent residence, family reunification permits, or anyone who actually gets explicit approval to be self-employed. And the health insurance question wouldn't matter for people switching from employment (with public health insurance) to self-employment.
Practically though, the immigration office's bureaucrats are by definition as far removed from entrepreneurship as they can be, and might struggle to reconcile the documents you have with the list of documents they are told to ask for.
My impression is that working for a company one substantially owns or controls, regardless of where it is registered, can lead to them deciding that it's self-employment and disqualifying a third-country national from using that work as the basis for an EU Blue Card or GKV.
Also, the rules for obtaining an EU Blue Card (or a skilled worker permit) require the employer to have a place of business in Germany, and that might be hard to demonstrate when the only tie to Germany is the location of the applicant. No idea if just renting a German office address for the business would suffice. At least Americans, Canadians, and other §41 AufenthV Abs 1 nationalities can bypass this obstacle with the §26 BeschV permit instead, with some extra approval and priority check paperwork. But this doesn't help with the issues in the previous paragraph of potentially being viewed as self-employment for immigration and insurance purposes.
They're all committing tax fraud and thinking they're in the clear, only getting away with it due to lack of international cooperation. It will bite them in the ass sooner or later, the taxman always gets his cut. The only way to avoid it is to physically move out.
Sorry to be the one to break it to you but essentially they're all committing tax fraud.
Always get a lawyer to represent you when the Tax folks start an audit. Never tell them anything over the phone or email. Always ask for a letter and provide explanations via letter. Do record all communications with them. Never say anything they did not ask for.
Don't get me started on founding a company and then getting necessary loans (all while the loan market changes and suitable houses might vanish from the market). Some proper investor is probably now renting out a multi unit house we would have bought, making nice profits while we would have aimed at boosting our pension in a few decades.
But well: That's the way it's meant to be, else the rules would be different, or would they?
(We got an old SFH instead, and slashed energy consumption by ~80-90%. That's not even accounting for PV. It's nice to profit from that now and later in life, but I still believe that we, as a society, would have benefited more from improving a MFH and sharing the lower energy consumption with some tennants)
I see this over and over and over again.
If you hit a bureaucratic wall in Germany you often can get over it, not by paying money like in some countries, but by paying with time from your own short life, and with your nerves trying to bend the system to your will. Is it worth it? No. Not in my opinion.
The whole system is designed for slavery. Never question anything here, just obey the rules, give up your individuality and live without a soul.
The new European way of freedom is not building your own life; you must let government take care of you, and in return you do what they ask. The best part is they think they are free and afraid of their privacy.
If freedom is not thinking for yourself and building your life, then what it is? The answer is; partying, drugs, alcohol, orgies. And complaining about other countries issues. Textbook cult patterns.
German news are full of other countries’ problems, they will discuss racism in US for weeks and months meanwhile Nazis are burning Turkish families once a year alive, murdering ordinary people. You’ll see how they write the softest article about burning immigrants alive in 2024 their own country but they will happily go out to the streets and protest for US or Ukraine.
How are you going to convince any immigrants to live here and work with you? None of the immigrants who live here say good things about Germany or Germans.
Investment scene is also pretty much depends on your race. Unless you’re already profitable or white european, they won’t fund your startup. They rather fund some grow-carrot-in-balcony startups instead of investing in your company.
I’m hoping to get out of this shit show soon and almost everybody around me consider the same.
Also I don’t think it’s fair to claim immigrants are being set on fire (with no citations) like it’s just regular business. Horrible things happen everywhere and I doubt Germany is the worst place in the world.
Overall you had me in the first half, then went off the reservation. Still I hold that your first points are valid.
Just last week a Turkish family was set on fire. They will claim the victims are not Turkish and then won’t reveal the identities or photos of them. So you won’t know it’s still happening.
Just talk to any Turkish person. Speaking of startups; Nazis here still attack Turkish small business owners. Ordinary people also face racist attacks if they get out of their neighborhood. Also at work if you work with Germans you’ll deal with mobbing.
There was even a serial killer just murdering Turkish small business owners. So you thought it’s just bureaucracy?
Bad things happen everywhere. DE is not unique in this regard but they do their best to prevent it, especially considering their history which weighs heavily on their culture.
(I’m not german btw)
Where’re you from?
2021 Report by Turkish Foreigners Community: https://nfrt.blob.core.windows.net/nefretsuclari/PageModule/...
Only in 2021 there were 300+ attacks recorded towards Turkish people.
You have no clue how many unrecorded attacks have been carried out Turkish people in day to day life in Germany.
The truth is so obvious and EVERYONE ignores it. If you ask white Germans why they organize large protests for George Floyd and virtue-signal how liberal they were and yet they never raised their voice for all these murders and violence, you'll reach the racism in their heart.
The difference is that Turks do not accept the victim status and take measures in their own to protect themselves.
They even formed a gang just to protect themselves from skinheads:
https://en.wikipedia.org/wiki/36_Boys
Any more citation you need? Do you need help digesting the truth?
I always say: if you want to know the bad parts about America - Ask a European! They're the only ones who seem to know.
1. *Choose Your Business Structure*: Decide whether you want to establish a sole proprietorship (Einzelunternehmen), a partnership (Gesellschaft bürgerlichen Rechts - GbR), a limited liability company (Gesellschaft mit beschränkter Haftung - GmbH), or another legal form.
2. *Business Name*: Choose a unique business name and check its availability. You can do this through the German commercial register (Handelsregister).
3. *Articles of Association (Gesellschaftsvertrag)*: Draft and notarize the articles of association if you're forming a company with others.
4. *Capital Contributions*: Determine the initial capital required for your business structure. For example, a GmbH requires a minimum share capital of €25,000.
5. *Register Business*: Register your business with the local trade office (Gewerbeamt) if it's a sole proprietorship or partnership. If you're forming a GmbH, you'll need to notarize the articles of association and register the company with the local commercial register (Handelsregister).
6. *Taxation Registration*: Register your business for tax purposes at the local tax office (Finanzamt).
7. *Obtain Necessary Permits and Licenses*: Depending on your business activities, you might need specific permits or licenses. Check with the relevant authorities.
8. *Social Security*: If you plan to employ people, you'll need to register with social security agencies.
9. *Employment Contracts*: Draft employment contracts if you're hiring employees.
10. *Open Business Bank Account*: Open a business bank account to manage your finances.
11. *Insurance*: Consider necessary insurances such as liability insurance, health insurance, etc.
12. *Data Protection Compliance*: Ensure compliance with data protection regulations, especially if you're handling personal data.
13. *Employer Obligations*: Understand and fulfill your obligations as an employer regarding taxes, social security contributions, etc.
14. *Ongoing Compliance*: Stay compliant with ongoing obligations such as filing annual reports, tax returns, etc.
Remember, these steps may vary depending on the type of business you're starting and your specific circumstances. It's advisable to consult with legal and financial professionals to ensure compliance with all legal requirements.