# 40% Tax on Wages



## Delapsus-Angelus (May 15, 2013)

So my new company hired a tax consultant for me, but Germany has a rule that anyone working in Germany pays all the tax, which equates to 40% on your whole wage, which is extremely high.

So my question to any foreign expats in Germany, why is it so high, and are there any benefits for me?

I see we pay pension etc, but if I dont plan on being in Germany for the rest of my life then this seems a waste of money, can i recoup this, or withdraw after my time in Germany ends?

Any tips would be great, as I am not prepared to get married in order to lower it


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## Bevdeforges (Nov 16, 2007)

Even if you don't work for the rest of your life in Germany, you may find that you're entitled to a small partial pension at retirement age. And/or if you retire in another EU country, that the years you worked and contributed to the German system will be taken into account when calculating your final pension entitlement.

I have a friend who lived and worked in Switzerland for 3 years before returning to the US. On her retirement, she found she was entitled to a "pension" of CHF 50 per year based on her work in Switzerland. It's not much, but every little bit helps. Or some countries will pay you out a single sum on retirement for just a few years worked in their system.

However, if you're paying all the German withholdings, you should be enrolled in the national health care system at the very least.
Cheers,
Bev


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## beppi (Jun 10, 2013)

If you are non-EU citizen and worked in Germany for less than 5 years in your life, you can get a refund of your premiums for retirement insurance, since you'll not be entitled for any pension.


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## Delapsus-Angelus (May 15, 2013)

I am from England so this won't help me it seems.


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