# Move to Germany from UK in 2022



## Kent980

Hello,

I'll probably move to Germany soon (new job), I have a long list of questions but I'll try to be very short  .
You don't need to reply to all the points, any contribution is highly appreciated.

Here we go:

1. I'll move without having completed my pre-settled status, I understood that I won't lose my permission to come back in UK if I return before 2y of staying outside the country, is it correct? (I'm from EU and my pre-settled was requested before Brexit)

2. What about bank accounts? I'd like to have a proper bank account, possibly not like Revolut that it's an half bank without warranties in UK (80k pounds). I saw DeutcheBank, N26 (which is probably a real bank), any other than has support in English? The last thing I really need is to deal with German, I'll study the language once onsite and it will take a lot of time to reach the fluency required to handle such matters.

2.1 So, the first requirement is the English support
2.2 Better if it has multi currency account
2.3 Better if it has an investment platform, but to be honest, I'll try to find a proper broker like IBKR or any other approved in Germany.

I'd keep Revolut as a temporary bank account, but due to the registration with the UK address, I have only a GB IBAN, it's not possible to have a DE IBAN as far as I know. I should eventually create a new account, which is probably not possible or it will trigger the removal of the account I currently own...

3. Unfortunately, I have quite a few investment platforms in UK, will I need to pull out the money from my ISA and NOT accounts if I remain in Germany for more than 6 months?
Certainly, I'll try to keep my bank accounts and investments platforms opened as much as I'm allowed, just in case I need to go back to UK... It will cost me a lot to move all the stocks and I need to avoid it if possible... Certainly, every administrative procedure will be complicated if I'm outside the country, especially if they ask me to verify my address, which I should change it everywhere I guess (also bank accounts), at that point it would trigger the account removal I'm afraid...

4. What will happen to my credit score in the meanwhile? Suppose that I leave for 2y and I can't anymore specify an address in UK once I'm back, what will happen? Will it drop to a very low amount or just a bit (at the moment it's excellent)? I want to keep my options to come back in UK opened, so it's important to preserve such thing.

5. I also own different credit cards, shall I close them too? For how long I can keep them active?

6. Shall I sell my car? The idea is to transfer a bit of critical stuff in Germany with my car (plus other stuff with a relocation service), then I'd transfer it online if there is any service that does it from Germany, but sold always from UK if possible.
Otherwise, I need to come back in Germany, drop the car to a dealership and then come back to Germany on foot  .

7. How does it work with credit cards in Germany? Is it like in UK that I need to take one to start to build my credit score, and slowly taking one that really gives you some cash to spend? After years in UK I'm positioned very well, starting from scratch in Germany is again a climb...

8. The sale of company shares are subjected by a flat tax of 25%, is it correct? (after a small tax shelter of less than 1000 EUR).

9. Does opening multiple bank accounts lower my credit score? I think that initially I'd open more of them, just to test them and see how I find myself between the website, app etc, surely I don't want to end up with translating the page with Google Translate...


You don't need to reply to all the points, any contribution is highly appreciated.


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## Bevdeforges

I think you'll find that in Germany (as in much of the EU) you don't have a "credit score" like you do in the UK (or US). Any credit cards you have in Germany are generally tied to your bank account (i.e. your current account/checking account) for direct payment. In general, you can't roll over a credit card balance to the next month like you can in (again) the UK or US. Most cards in Germany work as "debit cards" with your expenditures by card debited from your bank account either right away (as soon as it hits the bank) or at the end of each month. Even credit cards like American Express or Diners Club have to be linked to a specific bank account so that the charges can be taken each month.

From all the questions about credit cards, I think knowing how they work may cause you to rethink some of your plans and/or questions.


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## Kent980

Bevdeforges said:


> I think you'll find that in Germany (as in much of the EU) you don't have a "credit score" like you do in the UK (or US). Any credit cards you have in Germany are generally tied to your bank account (i.e. your current account/checking account) for direct payment. In general, you can't roll over a credit card balance to the next month like you can in (again) the UK or US. Most cards in Germany work as "debit cards" with your expenditures by card debited from your bank account either right away (as soon as it hits the bank) or at the end of each month. Even credit cards like American Express or Diners Club have to be linked to a specific bank account so that the charges can be taken each month.
> 
> From all the questions about credit cards, I think knowing how they work may cause you to rethink some of your plans and/or questions.


Thank you, I think I understood how it is, it's quite restrictive and it doesn't encourage to use the credit card at all, but as far as I've seen online, for the Schufa is important to use the credit card rather than having it and not using it, is it right?

I'm ok with re-paying every month, I just wonder if there is any benefit like re-paying in 2 months, or similar arrangements, so I can give it a sense.

I always lived in a way do not use my credit cards, I used them only for the credit score in UK, so it should be fine either way.

Deutsche Bank offers the bank account with credit card included, but it costs 14 EUR a month, quite expensive, it doesn't even have a multi currency account...
I noticed that banks always charge a lot for credit cards, so, do you suggest taking alternative routes for the credit card, like American Express etc? Basically financial companies that are not banks, it seems to be the cheapest way.

Does the hard credit check harm my schufa score? Assuming that there is a difference between hard and soft credit check...


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## *Sunshine*

As a newly arrived foreigner it will be difficult to obtain a low cost credit card. There are different types of credit checks and too many of a certain kind could have a negative impact. 

The financial sector in Germany is very different from what you are used to in the UK. 

Deutsche Bank's website is also available in English and I haven't noticed any glaring errors (on the other hand some official government websites are entertaining). Someone also recently suggested PostBank. I've heard that N26 doesn't accept all applicants and has also closed many accounts.


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## Kent980

*Sunshine* said:


> As a newly arrived foreigner it will be difficult to obtain a low cost credit card. There are different types of credit checks and too many of a certain kind could have a negative impact.
> 
> The financial sector in Germany is very different from what you are used to in the UK.
> 
> Deutsche Bank's website is also available in English and I haven't noticed any glaring errors (on the other hand some official government websites are entertaining). Someone also recently suggested PostBank. I've heard that N26 doesn't accept all applicants and has also closed many accounts.


Thank you.
Yes, I want to stay away from N26, too many controversies in the past, but also recently...
At that point, I'd evaluate Revolut (for the virtual cards mainly), but it wouldn't be my main bank account, so it seems wise to choose a proper German bank like Deutche Bank, or any other that offers English service.

Postbank is only in German, even though most of it is clear, I can't rely on it really, not in the beginning.

Ok for the credit card, I don't need it, and I won't get it, not at any time soon at least.
But I wonder how do they assess my credit worthiness then, just not having debts and claims?
Is there any official indications from banks on how they assess you? (just indications, I know they won't reveal the secrets  )


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## Kent980

Thanks to everyone so far, very helpful, it remains the following points (probably I'll open single threads to get more attention  ):

1. I'll move without having completed my pre-settled status, I understood that I won't lose my permission to come back in UK if I return before 2y of staying outside the country, is it correct? (I'm from EU and my pre-settled was requested before Brexit)

3. Unfortunately, I have quite a few investment platforms in UK, will I need to pull out the money from my ISA and NOT accounts if I remain in Germany for more than 6 months?
Certainly, I'll try to keep my bank accounts and investments platforms opened as much as I'm allowed, just in case I need to go back to UK... It will cost me a lot to move all the stocks and I need to avoid it if possible... Certainly, every administrative procedure will be complicated if I'm outside the country, especially if they ask me to verify my address, which I should change it everywhere I guess (also bank accounts), at that point it would trigger the account removal I'm afraid...

4. What will happen to my credit score in the meanwhile? Suppose that I leave for 2y and I can't anymore specify an address in UK once I'm back, what will happen? Will it drop to a very low amount or just a bit (at the moment it's excellent)? I want to keep my options to come back in UK opened, so it's important to preserve such thing.

5. I also own different credit cards, shall I close them too? For how long I can keep them active?

6. Shall I sell my car? The idea is to transfer a bit of critical stuff in Germany with my car (plus other stuff with a relocation service), then I'd transfer it online if there is any service that does it from Germany, but sold always from UK if possible.
Otherwise, I need to come back in Germany, drop the car to a dealership and then come back to Germany on foot  .

8. The sale of company shares are subjected by a flat tax of 25%, is it correct? (after a small tax shelter of less than 1000 EUR).


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## *Sunshine*

Kent980 said:


> Thanks to everyone so far, very helpful, it remains the following points (probably I'll open single threads to get more attention  ):


Please don't open additional threads in the Germany forum, it is really not necessary and puts the info you provide in too many threads.

On the other had you should probably post a few of your questions in the UK forum.

Importing your car to Germany is probably not worth the cost as well as the hassle. Especially since your car is designed to be driven on the wrong side of the road.


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## Kent980

*Sunshine* said:


> Please don't open additional threads in the Germany forum, it is really not necessary and puts the info you provide in too many threads.
> 
> On the other had you should probably post a few of your questions in the UK forum.
> 
> Importing your car to Germany is probably not worth the cost as well as the hassle. Especially since your car is designed to be driven on the wrong side of the road.


Thanks for that.

Yes, I won't import the car in Germany, I have the intention to drive there initially, then buy a German car (if needed initially) and ONLY then sell out the UK car, but I still didn't find any service that could take the car back to UK...


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## Harry Moles

You're not going to have much luck selling a right-hand drive car in Germany.

"Wat is'n dit? Steuer auf falsche Seite oder wat? Ich gloob ich spinne..." would be the response if you tried to sell it in Berlin or Brandenburg.


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## Kent980

Harry Moles said:


> You're not going to have much luck selling a right-hand drive car in Germany.
> 
> "Wat is'n dit? Steuer auf falsche Seite oder wat? Ich gloob ich spinne..." would be the response if you tried to sell it in Berlin or Brandenburg.


I don't wan to sell it in Germany, I want to sell it back in UK with a service that would take the car to UK and sell it there, otherwise I need to travel there by myself...

Anyway, I was wondering about the credit card again, is it necessary to build the schufa record?
I mean, in UK you need to have a credit card or any sort of financial debt to build up your credit history, which affects your credit score.
If I don't take a credit card in Germany at all, is it fine?
Considering that Germans check the Schufa once a year, I don't want to lose one year of my lifetime with a wrong mistake  , in UK for example, I check it every month or eventually once every 2 weeks with a specific service, this is only to speed up the credit score raise, as of today I don't do it anymore though, once every 6 months is enough.


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## *Sunshine*

Many Germans don't have credit cards. Many banks won't even consider you until you've been working here for more than 6 months. The financial sector is completely different here. Forget everything you learned in the UK; there is no comparison. BaFin is also very weak so you shouldn't assume anything.

Schufa (as well other companies) will start collecting data on you as soon as you contract with one of their partners (it is explained in the fine print and you give permission by signing the contract).


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## Kent980

*Sunshine* said:


> Many Germans don't have credit cards. Many banks won't even consider you until you've been working here for more than 6 months. The financial sector is completely different here. Forget everything you learned in the UK; there is no comparison. BaFin is also very weak so you shouldn't assume anything.
> 
> Schufa (as well other companies) will start collecting data on you as soon as you contract with one of their partners (it is explained in the fine print and you give permission by signing the contract).


What if my services/utilities are not partners with Schufa? Are there other agencies or it's only Schufa? Or simply everything can be tracked down by Schufa?

Thanks for all the help so far.


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## *Sunshine*

It's complicated. Schufa is by far the largest _Auskunftei, _but there are others. I don't know of any comprehensive and accurate articles in English. 



https://www.bonify.de/auskunftei



I real don't understand your obsession with Schufa. What do you really want to know? You keep asking questions, but haven't provided any information other than you are an EU citizen planning on moving to Germany for a job.


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## Bevdeforges

I don't know how it is nowadays in Germany (I left Germany almost 30 years ago now) but I wonder if perhaps the OP is "overthinking" the notion of a credit score in Germany. The Germans (as well as some other EU nationalities) are rather disinclined to rely on debt - in any form. If you search online for "Schufa" you'll find any number of sites for expats in Germany who have information in English on the subject. Though a couple of the sites say something about how foreigners living in Germany may not have a Schufa score for quite some time, while the company collects data on your spending and banking habits. But then, too, I sure wouldn't even think about applying for a loan of any sort until you've been in Germany for at least a year or two - unless maybe a mortgage on a house. (Though even there - Germans tend to rent their homes rather than buy them.) And for many credit needs, they tend to rely on their banks - the one they have had a long standing account in.


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## Kent980

*Sunshine* said:


> It's complicated. Schufa is by far the largest _Auskunftei, _but there are others. I don't know of any comprehensive and accurate articles in English.
> 
> 
> 
> https://www.bonify.de/auskunftei
> 
> 
> 
> I real don't understand your obsession with Schufa. What do you really want to know? You keep asking questions, but haven't provided any information other than you are an EU citizen planning on moving to Germany for a job.


I simply want to know exactly how it works, as much as I can  .



Bevdeforges said:


> I don't know how it is nowadays in Germany (I left Germany almost 30 years ago now) but I wonder if perhaps the OP is "overthinking" the notion of a credit score in Germany. The Germans (as well as some other EU nationalities) are rather disinclined to rely on debt - in any form. If you search online for "Schufa" you'll find any number of sites for expats in Germany who have information in English on the subject. Though a couple of the sites say something about how foreigners living in Germany may not have a Schufa score for quite some time, while the company collects data on your spending and banking habits. But then, too, I sure wouldn't even think about applying for a loan of any sort until you've been in Germany for at least a year or two - unless maybe a mortgage on a house. (Though even there - Germans tend to rent their homes rather than buy them.) And for many credit needs, they tend to rely on their banks - the one they have had a long standing account in.


Can Schufa collect data on my spendings? Really? I thought it was a privacy matter, or they can just monitor IN and OUT from the bank account? But honestly, even that, together with the balance, it should be private...

I wonder how the bank or Schufa would see the fact that I invest almost all I take...

Rent instead of mortgage? I'm fine with it


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## Harry Moles

*Sunshine* said:


> I real don't understand your obsession with Schufa. What do you really want to know?


Apparently there are people who fixate on their credit score. Americans are more prone to this than Canadians (I've literally never checked mine). Could be similar in the UK, or just an individual quirk.


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## lzr

German credit cards are not very good compared to say US credit cards. Payment has to be made at the end of a billing cycle rather than 4 weeks later. There are no reward programs. They usually come with a monthly fee.
If you already have a credit card that sounds better than this, keep it. The main reasons for Germans to get credit cards are:

Retail payments outside Europe. Your regular bank card will mostly work within Europe, but outside a credit card is necessary.
Online payments outside Germany. Credit cards are just the most widely accepted form of payment when shopping online. That being said, Paypal connected to your bank account or SEPA direct debit are still available in many cases.
Schufa is irrelevant as long as you pay your bills.


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## Kent980

lzr said:


> German credit cards are not very good compared to say US credit cards. Payment has to be made at the end of a billing cycle rather than 4 weeks later. There are no reward programs. They usually come with a monthly fee.
> If you already have a credit card that sounds better than this, keep it. The main reasons for Germans to get credit cards are:
> 
> Retail payments outside Europe. Your regular bank card will mostly work within Europe, but outside a credit card is necessary.
> Online payments outside Germany. Credit cards are just the most widely accepted form of payment when shopping online. That being said, Paypal connected to your bank account or SEPA direct debit are still available in many cases.
> Schufa is irrelevant as long as you pay your bills.


Oh thanks for that, I just remembered that banks may revert payments made with debit cards, reason why a credit card is necessary. Though it will be interesting to check the cost of my GBP credit card service in EU (EUR)  .

Paypal is a good online option, I'll keep it.

I'm just curious to know how people manage it in the beginning of their journey in life...
Do they take a loan? Parents money?
It's a bit off topic, but I'm really interested to know how Germans deal with it, in UK/US it would be impossible without the 2 options I mentioned...


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## Harry Moles

Depends entirely on the nature of the journey.


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## Bevdeforges

In Germany, the card the bank issues to you (for a fee) is a debit card. It works like a credit card for overseas purchases - but you still have to pay off the balance each month (or sometimes as the charges hit the bank). Not sure if it has changed in recent years, but when I lived there, even American Express worked like that - no rollovers, no extended payments. It actually works out rather well that way - no temptation to get yourself over extended.


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## Harry Moles

In my case, our German cards have the Visa logo and can be used like a credit card for online purchases, but they behave like debit cards, money is withdrawn from the account in a matter of days. There is no actual credit. I suppose that one could run an overdraft on those cards if enabled for the account, but I've never tried it. I assume it also works internationally - on at least one trip to the UK I would have used my German (euro) Visa card instead of my Canadian (dollar) credit card.


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## Kent980

I've seen very huge overdraft options, so I guess it's all about that, difficult to get a credit card (which have to be paid on the pre-defined day every month), but overdraft are quite high compared to UK.
Thanks everyone on this point.


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## Harry Moles

If you're not running up bills you can't pay, you don't need a credit card.


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## Voidist

Kent980 said:


> Hello,
> 
> I'll probably move to Germany soon (new job), I have a long list of questions but I'll try to be very short  .
> You don't need to reply to all the points, any contribution is highly appreciated.
> 
> Here we go:
> 
> 1. I'll move without having completed my pre-settled status, I understood that I won't lose my permission to come back in UK if I return before 2y of staying outside the country, is it correct? (I'm from EU and my pre-settled was requested before Brexit)
> 
> 2. What about bank accounts? I'd like to have a proper bank account, possibly not like Revolut that it's an half bank without warranties in UK (80k pounds). I saw DeutcheBank, N26 (which is probably a real bank), any other than has support in English? The last thing I really need is to deal with German, I'll study the language once onsite and it will take a lot of time to reach the fluency required to handle such matters.
> 
> 2.1 So, the first requirement is the English support
> 2.2 Better if it has multi currency account
> 2.3 Better if it has an investment platform, but to be honest, I'll try to find a proper broker like IBKR or any other approved in Germany.
> 
> I'd keep Revolut as a temporary bank account, but due to the registration with the UK address, I have only a GB IBAN, it's not possible to have a DE IBAN as far as I know. I should eventually create a new account, which is probably not possible or it will trigger the removal of the account I currently own...
> 
> 3. Unfortunately, I have quite a few investment platforms in UK, will I need to pull out the money from my ISA and NOT accounts if I remain in Germany for more than 6 months?
> Certainly, I'll try to keep my bank accounts and investments platforms opened as much as I'm allowed, just in case I need to go back to UK... It will cost me a lot to move all the stocks and I need to avoid it if possible... Certainly, every administrative procedure will be complicated if I'm outside the country, especially if they ask me to verify my address, which I should change it everywhere I guess (also bank accounts), at that point it would trigger the account removal I'm afraid...
> 
> 4. What will happen to my credit score in the meanwhile? Suppose that I leave for 2y and I can't anymore specify an address in UK once I'm back, what will happen? Will it drop to a very low amount or just a bit (at the moment it's excellent)? I want to keep my options to come back in UK opened, so it's important to preserve such thing.
> 
> 5. I also own different credit cards, shall I close them too? For how long I can keep them active?
> 
> 6. Shall I sell my car? The idea is to transfer a bit of critical stuff in Germany with my car (plus other stuff with a relocation service), then I'd transfer it online if there is any service that does it from Germany, but sold always from UK if possible.
> Otherwise, I need to come back in Germany, drop the car to a dealership and then come back to Germany on foot  .
> 
> 7. How does it work with credit cards in Germany? Is it like in UK that I need to take one to start to build my credit score, and slowly taking one that really gives you some cash to spend? After years in UK I'm positioned very well, starting from scratch in Germany is again a climb...
> 
> 8. The sale of company shares are subjected by a flat tax of 25%, is it correct? (after a small tax shelter of less than 1000 EUR).
> 
> 9. Does opening multiple bank accounts lower my credit score? I think that initially I'd open more of them, just to test them and see how I find myself between the website, app etc, surely I don't want to end up with translating the page with Google Translate...
> 
> 
> You don't need to reply to all the points, any contribution is highly appreciated.


depending on how much you earn ..i strongly advise you to study the tax situation there...you could be in for a nasty surprise. Crime especially in places like Berlin is on the rise..something that the press there does not like to talk about


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## Kent980

Voidist said:


> depending on how much you earn ..i strongly advise you to study the tax situation there...you could be in for a nasty surprise. Crime especially in places like Berlin is on the rise..something that the press there does not like to talk about


Hello, what part of my post are you referring to?
I don't think I mentioned the crime rate, and in case you wonder, UK is much worst.

What it should depend from how much I earn?


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