# What Germany City As A 'Base'?



## dominikm

Hi all!

Happy to be posting here after just joining and I've got a question.

I travel permanently and run an online business so I'm location free. And before you start saying oh you're so lucky blah blah just know that I spent a good 4 years working till like 2am after my day job office hours to figure it all out. Worked harder then most people ever will. You can achieve anything and lucks got nothing to do with it 

So I've got a German passport because of my parents who took me to Germany when I was 3 months old till I was 4 and I got it because I was there for those 4 years but lived in Australia my whole life. And I recently renewed it while I was in Miami 3 months ago.

So I want to 'base' myself somewhere because travelling permanently is great don't get me wrong but at time it does suck big time to not have a home when you want to just have down, like it really sucks and it's a massive hassle when you acquire things on the road like say all my snowboard gear I've got right now in Canada and at the end of the season I'll have to leave it with friends so I have all my belonging over the globe, yea kinda retarded!

So after the winter in Canada I'm planning to become a resident of Germany. Learn German and live in Germany for a while and backpack a lot of the country also. And then after that I'm going to look for an apartment in some city in Germany with cheap rent to use as a 'base' to call home. I'll only be there once every 2 months or so but at least I'll have a home to go to and to keep all my stuff! Plus the property owner will love it as he's getting rent and no one is really there so it's less wear and tear on the place but he still gets the same rent as someone living there full time. And part of this is to also become a non-resident for tax purposes in Australia, close my company as legally it's based there and open an Estonian company that has 0% tax and pay myself as an employee in Germany and I'll pay the German tax rates on my Salary but it's well worth it with the companies earnings not being taxed in Estonia.

Sooooooo my real question is this. Sure I plan on seeing all of Germany with my backpacking but what would you say is the best city to call 'home' if you are just there for a week or 10 days every few months that also has cheap rent.

I've been to Berlin twice, Munich a few times and Hamburg and some other cities I don't remember when I was young.

But I'm not really sure what city to use as a 'base' for what I'm thinking about doing. When I'm there for those 10 days or so when I'm back I'll want to relax but also go out and have fun (I'm almost 27 now) but at the same time I'm not really going to know people so a city with lots of expats and expat meet ups I guess is a good thing? Not sure...

So yea, kind of a unique situation but if I could get some advice that would be awesome! Where would you live?


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## Nononymous

What you might want to do is look for a flat share in one of the bigger cities, where you rent a bedroom to sleep in and store your crap, then lock it off when you're away. Roommates generally like other roommates who are never there. Berlin would be a reasonable candidate, tons of expats and easy to survive with English while you're learning German, and you could probably get a room in a biggish WG (shared apartment, often with three or more bedrooms) pretty reasonably in Neukölln or Friedrichshain, where there are plenty of places to relax and drink while you're there.


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## dominikm

Nononymous said:


> What you might want to do is look for a flat share in one of the bigger cities, where you rent a bedroom to sleep in and store your crap, then lock it off when you're away. Roommates generally like other roommates who are never there. Berlin would be a reasonable candidate, tons of expats and easy to survive with English while you're learning German, and you could probably get a room in a biggish WG (shared apartment, often with three or more bedrooms) pretty reasonably in Neukölln or Friedrichshain, where there are plenty of places to relax and drink while you're there.


Ok thanks for that. Yea I'd rather have my own place that's distraction free to be honest. And just pay to money that's needed and that way I have the bills in my name to so I'm building a history in Germany if I ever get a place there to buy etc.

I'll pass through Neukölln and Friedrichshain of Berlin when I'm there so thanks for those suggestions!


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## Nononymous

Well if money's no object... But make sure you have a clear understanding with the landlord because leaving a place empty for months at a time isn't always ideal either - somebody needs to have access when, inevitably, the upstairs neighbour's bath drain malfunctions and it comes through the ceiling. (One day I'll write a book about living in Germany, and it will be called "Angst vor Wasserschaden".)


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## dominikm

Nononymous said:


> Well if money's no object... But make sure you have a clear understanding with the landlord because leaving a place empty for months at a time isn't always ideal either - somebody needs to have access when, inevitably, the upstairs neighbour's bath drain malfunctions and it comes through the ceiling. (One day I'll write a book about living in Germany, and it will be called "Angst vor Wasserschaden".)


Makes total sense!

And yes I'd make the owner aware of that in case there are issues but if anything I'd say he/she would love it as he still gets full rent and there is less wear and tear on his/her property.


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## Nononymous

dominikm said:


> Makes total sense!
> 
> And yes I'd make the owner aware of that in case there are issues but if anything I'd say he/she would love it as he still gets full rent and there is less wear and tear on his/her property.


Never underestimate a German's ability to not think the same way that you do. Wear and tear may be less of a concern for landlords because apartments are typically rented quite barren (tenants are responsible for window coverings, light fixtures and sometimes the entire kitchen, appliances, sink, cabinets and all) and rental contracts often include provision that tenants repaint before they move out. 

Not saying you'll have problems, but bear in mind that setting up your own place is a huge pain in the ass, and an absentee tenant may not be welcomed as the greatest thing ever.


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## dominikm

Nononymous said:


> Never underestimate a German's ability to not think the same way that you do. Wear and tear may be less of a concern for landlords because apartments are typically rented quite barren (tenants are responsible for window coverings, light fixtures and sometimes the entire kitchen, appliances, sink, cabinets and all) and rental contracts often include provision that tenants repaint before they move out.
> 
> Not saying you'll have problems, but bear in mind that setting up your own place is a huge pain in the ass, and an absentee tenant may not be welcomed as the greatest thing ever.


Ok cool good to know and thanks!


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## Nononymous

In the end, you may find that the WG option is actually much easier for you, given the costs/hassles of starting from scratch, and the potential suspicion of landlords, who can be very picky about granting permanent rental contracts (Hauptmietvertrag). 

Honestly, I've found that it's far easier to buy a house in North America than it is to rent an apartment with your name on the lease in Germany.

Another option, if you're really just looking for a glorified storage locker in which you can occasionally sleep, is to find a small apartment in one of the East Berlin pre-fab high-rise buildings, built back when it was East Germany and presumably refurbished a bit since 1989 (Plattenbau). Vacancy rates are higher, rents are lower. Generally not found in the most charming of neighbourhoods, certainly not a ton of expats around, but you're never more than a few S-Bahn stops away from the action.


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## expatgal

*Place too stay*

Since you travel so much, why don't you take a trip and check out the various areas?

I've been a land lord, and it's difficult, tenants who leave the place for long periodsof time. It leaves the flat, home, vulnerable to theifs.
Please remember you and the landlord...won't be the only one to know you've left the home empty.
Your life won't be just between you and the landlord, he'll tell somebody you're gone, that person will...You'll eventually tell a friend who will...
Perhaps sharing a flat is the best option.

Good luck!


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## dominikm

Thanks again for the advice folks. Maybe a shared place would be the best idea after what you all said. I'm just not comfortable leaving my snowboarding equipment (about $2000 worth) at a randoms house. And then once I get back into skydiving I'll have to leave that gear there ($10,000 worth) when I'm not jumping. Then there is kite surfing gear when I start that up and who knows what else I'll get into.

I guess something like this is better then - Self-Storage - Umzug/ Möbeltransport Berlin. It's 62 euros a month for a 3m2 storage units and for basically a few suit cases worth of stuff that's good and I'm sure I can have it all insured just in case.

Then get a share place where I pop in and out of once every 2 months or so. And then look into actually buying a place later on in a city I like so everything is issue free and maybe employ some security company to do checks on the place or if there ir building security if it's a nicer place they can do it.


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## Whatsnext

Hi mate, interesting post.
We seem to share a lot of common interests, including traveling and internet marketing. My wife and I are from Germany originally and my wife and I are currently living in Köln (Cologne) where we had actually met a very long time ago. We lived in Australia for over ten years (dual citizens now) and for some foolish reason returned to our roots two years ago. However, unlike you, we are actually horrified what Europe has become during our long absence and are planning on returning to Australia by the end of the upcoming European summer.

If you happen to be in Cologne, at any stage, let me know and perhaps we could meet?




dominikm said:


> Hi all!
> 
> Happy to be posting here after just joining and I've got a question.
> 
> I travel permanently and run an online business so I'm location free. And before you start saying oh you're so lucky blah blah just know that I spent a good 4 years working till like 2am after my day job office hours to figure it all out. Worked harder then most people ever will. You can achieve anything and lucks got nothing to do with it
> 
> So I've got a German passport because of my parents who took me to Germany when I was 3 months old till I was 4 and I got it because I was there for those 4 years but lived in Australia my whole life. And I recently renewed it while I was in Miami 3 months ago.
> 
> So I want to 'base' myself somewhere because travelling permanently is great don't get me wrong but at time it does suck big time to not have a home when you want to just have down, like it really sucks and it's a massive hassle when you acquire things on the road like say all my snowboard gear I've got right now in Canada and at the end of the season I'll have to leave it with friends so I have all my belonging over the globe, yea kinda retarded!
> 
> So after the winter in Canada I'm planning to become a resident of Germany. Learn German and live in Germany for a while and backpack a lot of the country also. And then after that I'm going to look for an apartment in some city in Germany with cheap rent to use as a 'base' to call home. I'll only be there once every 2 months or so but at least I'll have a home to go to and to keep all my stuff! Plus the property owner will love it as he's getting rent and no one is really there so it's less wear and tear on the place but he still gets the same rent as someone living there full time. And part of this is to also become a non-resident for tax purposes in Australia, close my company as legally it's based there and open an Estonian company that has 0% tax and pay myself as an employee in Germany and I'll pay the German tax rates on my Salary but it's well worth it with the companies earnings not being taxed in Estonia.
> 
> Sooooooo my real question is this. Sure I plan on seeing all of Germany with my backpacking but what would you say is the best city to call 'home' if you are just there for a week or 10 days every few months that also has cheap rent.
> 
> I've been to Berlin twice, Munich a few times and Hamburg and some other cities I don't remember when I was young.
> 
> But I'm not really sure what city to use as a 'base' for what I'm thinking about doing. When I'm there for those 10 days or so when I'm back I'll want to relax but also go out and have fun (I'm almost 27 now) but at the same time I'm not really going to know people so a city with lots of expats and expat meet ups I guess is a good thing? Not sure...
> 
> So yea, kind of a unique situation but if I could get some advice that would be awesome! Where would you live?


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## expatgal

Hi mate, interesting post.
We seem to share a lot of common interests, including traveling and internet marketing. My wife and I are from Germany originally and my wife and I are currently living in Köln (Cologne) where we had actually met a very long time ago. We lived in Australia for over ten years (dual citizens now) and for some foolish reason returned to our roots two years ago. However, unlike you, we are actually horrified what Europe has become during our long absence and are planning on returning to Australia by the end of the upcoming European summer.

If you happen to be in Cologne, at any stage, let me know and perhaps we could meet?========================================================
Hi Whatsnext,
What do you mean, you're horrified of what Europe has become?
My plans are to retire in Germany, and I have traveled through Europe for years, I've never experienced any problems.
Please enlighten us.


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## Nononymous

dominikm said:


> Thanks again for the advice folks. Maybe a shared place would be the best idea after what you all said. I'm just not comfortable leaving my snowboarding equipment (about $2000 worth) at a randoms house.


Like anyone in Berlin is going to borrow your snowboard. It's what, twelve hours to the nearest hill?


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## Whatsnext

expatgal said:


> ========================================================
> Hi Whatsnext,
> What do you mean, you're horrified of what Europe has become?
> My plans are to retire in Germany, and I have traveled through Europe for years, I've never experienced any problems.
> Please enlighten us.


Well, how can I put this into a few words, without turning it into a full blown essay? EDIT: sorry...it looks like this turned out to be an essay, after all!

First of all, I don't mean to discourage you from your plans. As a traveler, you might not feel the effects of politics over the years since the Euro was introduced (forced upon people). You might also not be directly affected if you move here as a self sufficient retiree (however, there are other issues of being a US expat that you may already be aware of - see my notes at the end).

My wife and I who were both born and grew up in Germany can certainly see through the nasty politics of turning Europe into the new Soviet Union with Brussels being the new Moscow. They call it the EU but there is no "unity", as there is no way you can unite dozens of nations, each with their own culture, language, work ethics etc by forcibly introducing one common currency all of a sudden - as each nation (they already call "EU State") still maintains their own federal parliament, have their own finance politics and economic policies. It does not work "as one", it was destined to fail. Yet the fanatical EU politics keeps pressing on their way of creating this new Soviet Union, despite all facts pointing to the same destiny the "other" Soviet Union further east experienced. Already today, many if not most laws affecting life in the "EU" are made in Brussels.

The "EU Machine" really is the untouchable power comprising thousands of non-elected officials. Mainstream media in Germany and probably in the whole of Europe works so well as propaganda channels that people seem to keep voting for the same parties who in turn support the "EU" idea.

Since the Euro was introduced and this "unification and integration madness" has been going on, salary incomes have naturally been decreasing for the vast majority of people. Currently, unemployment rates in some of the Mediterranean "EU nations" are upwards of 25% (youth unemployment above 50%). Open borders means people are naturally flocking to those nations that are traditionally better off, i.e. Germany, France, Great Britain, etc. resulting in competition for jobs and keeping further caps on incomes, as well as putting strains on social systems and family benefit payments etc. Often integration also proves difficult.

Our best years here were the 1990's...when each European nation still maintained full sovereignty, had their respective currency and they still maintained border controls. There was no issue to travel as a tourist, you just had to show your passport or ID card. It was when multinational agreements already allowed for free trade between various nations, but not completely free movement of people. It was the BETTER system, the only system that works. A system, that prevented many of the problems we see across Europe today.

We went through the rigorous process of qualifying for permanent residency in Australia, and I appreciate that some nations on this planet actually still maintain a sound immigration regimen. When we moved to Australia, I actually completed not one, not two but three courses, all leading to full qualifying certificates in business and information management. We already spoke English fluently. But all that was not even enough to be allowed to stay. We ended up achieving permanent residency through my wife's work and a lot of luck (plus paying thousands of dollars to an attorney and the Immigration Dept). Compare that to the claim of the EU (I call it the EUSSR) officials that free movement and access to each others' social security systems is an essential part of this new Soviet Union!

Back to the "lifestyle" situation in "rich" Germany... there was a reform of the labour market in Germany, called Agenda 2010 (en dot wikipedia dot org/wiki/Hartz_IV <----- sorry can't post links yet due to minimum post count as a new forum member)- which basically resulted in the majority of jobs in Germany today being in the low paid segment, often justifying social welfare support to make up the difference... just like a Walmart slave in the US - and you get the picture of what life in Germany means today for most, compared to ten or 15 years ago. So essentially ... the strong German economy goes on the back of deteriorating working and income conditions for the great majority of people. Many of these low paid jobs are therefore funded by ... the taxpayer! No surprise Germany could still maintain a solid economy.

Over to France, with Socialist Hollande's proposal for an insane 75% income tax rate on certain high income earners and company profits....which saw companies and the wealthy abandoning France....there are apparently hundreds of factories folding in France each month....now the same German politicians who introduced the above quoted _Agenda 2010_ labour reforms are now passing on advice to Hollande on how he should adopt the same doomed reforms...

When I see German cities here today...there are many struggling people. I have NEVER seen so many homeless people, often sleeping right in front of shops! I can't believe that it is actually allowed and nothing is done to move them on! The same with many chain grocery stores that have someone standing or sitting right next to the entrance, begging for money. Watch any trash bin in the city for a few minutes and you will see people from all walks of live going through it, in the hopes of finding bottles or drink cans for the value of the deposit that can be cashed in. The rates of crime and break ins in many German cities have been skyrocketing, too. Just last Saturday morning, a 75 year old lady was mugged just around the corner from where we live and had her handbag stolen by someone described as being Eastern European. We have massive problems with open asylum centers, where people from certain origins send their kids to break into houses and cars. My brother is a member of a local boats club and they broke into their clubhouse. The elderly mum of a friend of ours, had her apartment broken into recently...and she lives in the 7th floor. 

From our perspective of being an international expat and seeing our native homeland with different eyes (with a before and after view) ... they are doing it all wrong! The "EU" is a failed concept.

The worst thing is, that new grass root movements making it to full fledged political parties like the AfD (Alternative für Deutschland) are repeatedly and consistently being portrayed in the German media as being right wing extremist. Essentially, anyone speaking up against EU centralization, dismantling of their own country's parliament and the concept of open borders and everything that goes with it, is labeled a "right wing extremist"! This is so shocking to see...the main German media not only is Government controlled (even though they claim it is not) but people in Germany are forced to even PAY a "broadcast" tax to the tune of 18 Euros per month!

So when I was saying we are HORRIFIED what Europe has become...then we are thankfully not the only ones. 
There are hundreds of thousands being actively engaged online, they have awoken. 

Without wanting to sound too alarmist, but we truly don't believe that the Euro and "EU" lie will be able to be maintained for much longer.
The economies of the southern nations collapsed, unemployment in the 25 to 60% ranges .... back in the pre-Euro era those nations had some way of building an economy, and when it came to competing with the strong Deutsch Mark, they were able to simply de-value their own currency against it, so exports became cheaper for Germany to buy. This important tool has been taken away from these nations by introducing the Euro.

So now we have banks being continuously being bailed out by the European taxpayers, on the basis of decisions made in Brussels and elsewhere, without any due democratic process involving the people. Already there are plans out by the IMF on wealth confiscation across Europe, to pay for all this debt given to banks who continue to prop up the stock markets, rather then to lend to local businesses in order to invest and create jobs.

Oh no.....I see behind all of this. The big bang has to come.


Regarding the point I made in the beginning "there are other issues of being a US expat that you may already be aware of" ... this was meant in relation to the FATCA law by the IRS. This is the most ridiculous law, and I have read all about it how it adversely affects millions of US expats. 

The reason I have been digging this topic for months is because it was the make or break for our decision to pursue our US green card application!
At the moment, we are strongly leaning towards letting the green card for a life in the US slip by, as we don't believe in the USA's system of taxation that is based on 'nationality' as opposed to the rest of the world which has a simple residency based taxation system.


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## ALKB

Nononymous said:


> Like anyone in Berlin is going to borrow your snowboard. It's what, twelve hours to the nearest hill?


8 hours by car to the Austrian Alps but in between you can try plenty of medium sized mountain ranges. Or you could go just a bit east and try the resorts in Poland and the Czech Republic.

His snowboard might not be as safe as you think 

I am quite partial to skiing, though. I am old-fashioned that way.


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## BelloBello

Whatsnext,
Do you mind if I jump in here? 
I PROMISE to use few words, and I won't ask questions! No need for a reply either, doesn't require one.
When you leave Germany and the EU, move quickly, and don't let the door slam shut on your rear.


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## Whatsnext

BelloBello said:


> Whatsnext,
> Do you mind if I jump in here?
> I PROMISE to use few words, and I won't ask questions! No need for a reply either, doesn't require one.
> When you leave Germany and the EU, move quickly, and don't let the door slam shut on your rear.


Well, as a matter of fact, I DO mind that you 'jump' in here to add such an unsubstantiated statement of hate against me personally, followed by such an arrogant sentence that no reply was required by me. You are such a fool for posting this. While I have answered someone's question on how we feel about Europe probably way more detailed as I should have, this gives you no right in the world to judge me for expressing our educated views. I admit that I may have gone a bit overboard in answering the question, but I won't apologize for feeling strongly about what Europe has become as a result of constant undemocratic processes. You seem very narrow minded and completely unaware of what's been happening in Europe. Never mind. :confused2:


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## beppi

Whatsnext said:


> ...


What an incredible heap of ill-informed and agitative BS!


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## Whatsnext

beppi said:


> What an incredible heap of ill-informed and agitative BS!


What part? Can't handle the truth, been conditioned to not see it or are simply ignorant of what's going on?

Honestly, please just refrain from negative comments to my post if you don't agree with it for whatever reason - nobody is looking for your approval or disapproval. I certainly did not mean for this thread to dominate for the wrong reasons, I was simply opening up to someone elses' question. So just let it go.


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## James3214

Perhaps anyone contemplating a post on this thread can please re-read the rules. I haven't removed any posts so far and don't want to have to start.


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## Nononymous

Is the expression "tinfoil hat" acceptable in this context?


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## dominikm

Haha!

My thread was hijacked and turned into a political debate!

The only thing I'm going to add (no political opinion, slightly different) is there was mention of not seeing the effects as I would as I'm self funded. And I'm not going to add 'retiree' haha as I'm 27 tomorrow!

And that's right I guess I don't see them as I'm really a tourist in Europe...

But... Why would you want to retire anyhow? That would be boring. I'd rather work a few hours a week on an online business and spend the years of 27 to 100 leading a 'free' life 

Instead of working like a dog in a job being unappreciated (99.5% of work places) till I'm 65 and then only living till 75 because I died of a heart attack from working so much from being stressed or being dead before I retire from a heat attack and stress <<<<<<<<===== Reality!!!

A better way of thinking then thinking you need to retire is to build a life that allows you to do what you want, when you want, with whomever you want without anyone telling you what to do and with minimal effort needed to keep the life going and not work like a dog to keep it going.

Focusing on all the negative things attracts negative circumstances into your life and if you focus on all the political crap that's going on out there then that is your reality. Why would you want to even focus on that stuff anyhow and let that get you all irritated and upset...

If you focus on the positives in life such as building a stress fee, fun, location independent (if you want it), non being a non-issue type of life. Then that's what you'll create in your reality.

You create your reality if it's good and you live a prosperous life or if you end up on the street and homeless living a bad life. It's as simple as that, you create your reality, there might be external factors that contribute but in the end if it's good or bad it's you fault 

And no one can argue that as there have been homeless people who have seen their errors in their ways and are now billionaires. There are a few who have pulled that off so you really do define your own reality. It's as simple as that.

Re my snowboard gear haha I guess someone might want to steal it or they might not but it was more about leaving things in a randoms house.

In the end after research on all the tax issue and legal sides of things I'm not going to use Germany as a base. It was a starting point due to the German passport I have but from what I found out it would be a bad choice in the end to setup as my base and with how high taxes are I might as well keep my base in Australia. From my research Germany is worse then Australia.

I've got some professional advice on where to setup my base and company but that's not information I am going to share in a public domain like a forum. I'll have my residency and company setup but just not in Germany.

I also overlooked the fact that you can just get storage lockers that can be insured so I don't have to worry about my stuff anyhow doing that as it's safe and insured at a storage company.

I think I'm going to just backpack around like planned for the next 6 months in Europe starting in May and then when I do settle down I'll just get short term leases for 6 months max in different countries in Europe as for 1 even 3 months in a city is toooooooo long for me as I get bored as I have itchy travel feet big time and 2 this rule differs depending on the country but most counties in Europe will class you as a resident who owes taxes on income sourced outside of that country if you after there longer then 6 months so I don't want to get in that situation but I doubt that would happen as I just want to keep travelling.

If I want to stay in Germany for a while I'll just city hope I think. One month in this city, one month in that city and making sure I'm just not around for more then 6 months.

Property wise if I want a property in Germany somewhere as my company will not be in Germany I can just get a investment property in the city I want and then I don't own it but a company out side of Germany does.

There are so many things you can do if you just put your thinking cap on and not live outside the box but just frigging live like there is no box and all and get creative with how you structure your life 

Oh and expatgal if I make it to Koln I'll msg you 

Cheers!


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## expatgal

*Happy Birthday!*

Happy Birthday to you!!!
Have a wonderful adventure, and life.
You're only young and free once in your life.
I've been retired for a short time, and I have to say..I don't have enough time to do all I want.
When and if you arrive, pm, and I shall tell you about the time a black bear jumped over me...we all have a past.
Cheers!

:rockon:


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## dominikm

Thanks!

Black bears jumping over you hu, crazy lol!

I guess it depends on the person. I get crazy bored unless I'm doing stuff plus I'm passionate about creating things out of nothing (eg. taking an idea and getting it to make money without staff and automate the process with an online business etc).

I'll never 'officially' retire. That's just me!


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## Nononymous

I'm sure you're aware of this, but the key things to watch out for are 90 consecutive-day limits (which establish residency, with certain obligations) and 183 days-within-one-year limits (which establish tax residency, with even bigger obligations). You're on a German passport so you don't have to fuss about the Schengen tourist visa rules, but the 90 and 183 day limits can still bite you in the ass.

Otherwise, grand, ****** off and enjoy it.


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## Whatsnext

dominikm said:


> Haha!
> 
> My thread was hijacked and turned into a political debate!


I'm actually sorry about that...I did not mean to do, instead I should have just added one or two sentences and that's it. No point in discussing politics here.

...



dominikm said:


> A better way of thinking then thinking you need to retire is to build a life that allows you to do what you want, when you want, with whomever you want without anyone telling you what to do and with minimal effort needed to keep the life going and not work like a dog to keep it going.
> ...
> If you focus on the positives in life such as building a stress fee, fun, location independent (if you want it), non being a non-issue type of life. Then that's what you'll create in your reality.



Yep, I hear you...which is why I am working on creating multiple streams of income, too for the exact same reasons...to be independent and as free as possible from location constraints. It was actually back in Australia where I learned the concept of leverage and put that to use in the property market. Now applying that at IM.



dominikm said:


> In the end after research on all the tax issue and legal sides of things I'm not going to use Germany as a base. It was a starting point due to the German passport I have but from what I found out it would be a bad choice in the end to setup as my base and with how high taxes are I might as well keep my base in Australia. From my research Germany is worse then Australia.
> 
> I've got some professional advice on where to setup my base and company but that's not information I am going to share in a public domain like a forum. I'll have my residency and company setup but just not in Germany.


I had actually been wondering about your plans of setting up residency in Germany while being a (salaried) director of your own Corp out of Estonia. I do imagine that that might cause lots of complications while being resident here. On the other hand, I guess an offshore Corp will require you to have established a main tax base somewhere. Now you made me curious what your tax attorney advised you on...as I might require some professional advice myself at some point.


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## dominikm

All good man!

We think the same in terms of free but I don't really care for political stuff lol. I follow the alternative news and politics is a pissing matching and about money. I'd rather focus on my future and making it a good one!

Re the tax stuff I kind of figured everything out and then confirmed it all with an expert. Most legal advisers just go and check the laws on things and then tell you their opinion. Most laws are public documents in most countries also.

So you can save yourself 10s of thousands by just reading them up first and then getting confirmation on your ideas from a legal expert.

I suggest you look into off shore jurisdictions to setup your company for IM. As remember that the company in and of itself will never get taxed when you live in say Germany.

You as a shareholder who gets a directors fee, salary or dividend distributions etc... This is income that can be taxed but even then dividends can have different rules.

But, if the company keeps it's money offshore and it never comes into the country then this is not tax evasion (illegal) it's only tax avoidance and that is perfectly fine as there are millions of companies globally. Think about say Apple having companies setup in Europe for their operations, then USA, then Australia etc.

The company itself won't get taxed in a different jurisdiction. This is tax avoidance and just playing it smart. It's not illegal tax evasion.

So how does this help if you don't actually take the money into say Germany. Well you could own an investment property in say Germany but it's owned by a company somewhere else such as a tax free jurisdiction. If you are familiar with Europe then say a non-resident company in Cyprus or where ever real. And that company rents out the property to you personally at a low rate or even rents it you main company that runs your business and your business pays for you to be in the property as you run a home business and this is your office.

There are so many things you can do. In the information age we live in you have access to so much info online for free and better yet membership sites from experts who consult for like $500/hr or so but do $50/m membership and provide all their info for that monthly fee.

Here is another example. Say you own that company offshore I know know someone who does this onshore who has a business in Canada and doesn't do anything offshore. He basically loans himself money from his company at the lowest rate legally possible and he has to watch this so his rate is always legal and he doesn't go under the rate. Say he loans out 100k to himself as an individual. That money is a debt, it's not income. He does it at like 1% - 3% or something on a 100 year term. There is nothing wrong with this you just have to check with an expert what is the lowest rate a loan can be done at and what it the longest number of years it can be done for. If it's $100k and 1% that's only $500 year to pay back to access $100k. The interest you will make keeping the $100k in the bank personally with cover your loan payment even so you technically don't pay back anything and in Germany isnt' the first 8000 euros tax free? Even if you get a bank account at 1.5% you are good and wont pay tax on that income.

Just play it smart.

The government is all about keeping people in the 'rat race' as you know since you are an IMer and have built a good live with an internet business. Just start playing the game of life in a smart manner instead of just going with the flow and paying pathetically high tax rates and that's especially the case in Europe.


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## dominikm

Oh and I looked into Estonia also and I wouldn't do that. Why would you if you can go to Cyprus and get a company with 0% tax on all profits created outside of Cyprus as a non-resident company?

Where as Estonia will charge you 21% tax if you pay out distributions. Yes Estonia is 0% if the money stays in the company and you just pay out salaries but what happens when you want to pay out yourself like $50k if you need it for something. They you get hit by 21% and you have to deal with it.

Cyprus makes more sense as a non-resident company.

I did a lot of research into Estonia and it's a solid option but also one that people just jump right on when they see 0% but you need to dig deeper


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## Whatsnext

dominikm said:


> Oh and I looked into Estonia also and I wouldn't do that. Why would you if you can go to Cyprus and get a company with 0% tax on all profits created outside of Cyprus as a non-resident company?
> 
> Where as Estonia will charge you 21% tax if you pay out distributions. Yes Estonia is 0% if the money stays in the company and you just pay out salaries but what happens when you want to pay out yourself like $50k if you need it for something. They you get hit by 21% and you have to deal with it.
> 
> Cyprus makes more sense as a non-resident company.
> 
> I did a lot of research into Estonia and it's a solid option but also one that people just jump right on when they see 0% but you need to dig deeper


Many golden nuggets in your previous post. Re: Estonia, ha! I was just referring to your other thread in this forum where you explained that you were planning on setting up a corp there as a matter of fact, so I had actually not looked into that country myself.

Regarding Cyprus etc...I was aware of the advantages there, but I am hesitant when it comes to Europe and Cyprus in particular, due to last year's confiscation of savings which many say was a 'test run' of what might be in store elsewhere in Europe.

Just one last thing...I wonder how what you have illustrated in your previous post might be affected by the OECD/G20 plans for a global exchange of information to crack down on *tax-avoidance strategies* used by companies such as Google Inc., Apple Inc. and Yahoo! Inc. ?

Read how their tone has changed to: 


> “The political message is that we will be closing down all the loopholes,” he said. “_What multinationals are doing is legal. If it’s legal and you don’t like the outcome, you need to change the rules._”


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