Money & Taxes

Money in Germany has its own rulebook: your landlord wants a Schufa report before you have a credit history, your employer wants an IBAN before your first payday, and the Finanzamt wants to hear from you whether you like it or not. The good news — each of these is a solved problem once you know the steps.

Start by opening a German bank account (several are free and work before your Anmeldung), then understand how German taxes work — most employees are owed a refund of around €1,100 and never claim it. And if you earn above €84,150 (2027 threshold, €77,400 in 2026), your biggest saving is usually not a tax trick at all, but switching to private health insurance. The 2027 figure was approved by the federal cabinet and still needs Bundesrat approval, expected in November 2026.

What this section covers

These guides cover the four money topics every newcomer meets in the first months. The bank account guide compares free accounts and shows what you can open before your Anmeldung. The Schufa guide explains what the German credit record is, how to request your own report, and what to do when a landlord asks for one and you have no history. The tax guide walks through tax classes (Steuerklassen), deductions and filing a return. The cost of living guide gives realistic monthly budgets by city, so you can check whether a job offer or a flat actually works for you.

If you have just arrived, read them in that order. Open the account first, because rent, salary and insurance all need an IBAN. Then deal with Schufa and taxes once you are settled. If you want to know whether an offer is fair, compare it with our salary benchmarks for Germany. Every guide names its official sources and is updated when the rules change; you can read how we work on the about page.