Spotlight on Germany - Global Mobility Solutions

Global Mobility Solutions
SPOTLIGHT ON GERMANY
WELCOME GERMANY
Germany, or Deutschland, is a modern and innovative country with superb healthcare, high educational
standards, and extensive transport infrastructure. Those making the transition to expat life in Germany
should find it fairly straightforward. With its powerful economy, international business hubs and notably high
quality of life, Germany has long been a popular expat destination. Germany is at the center of Europe, not
only geographically, but also in terms of politics and economics. The country is Europe's second most populous
after Russia, with more than 81 million people.
Expats moving to Germany will find an excellent standard of healthcare and a growing
culture centered on healthy living. Germany's capital, Berlin, is a leading health destination
in Europe and is also Germany’s largest center for medical activity. Germany is home to
a number of leaders in the field of medical research and pharmaceuticals such as Bayer,
Pfizer and Berlin-Chemie. Both public and private hospitals in Germany are up to
international standards and expats with specific health problems can find comfort
in the fact that Germany has a number of specialist hospitals.
GLOBAL MOBILITY SOLUTIONS
01
Global Mobility Solutions
SPOTLIGHT ON GERMANY
House Prices across the OECD
EXPATRIATE HOUSING
toward renters during their home search in Germany.
With home ownership at 43%, Germany has one of the
GER
PRT
GRC
USA
ITA
EA
ESP
DNK
NLD
AUT
SWE
FRA
GBR
NOR
CAN
%
BEL
Expatriates should expect a housing market geared
% over or under valuation relative to long term avgs.
60
lowest rates in the western world. In fact the largest
German city, Berlin, has a rental property share of over
40
90%. Expatriates looking to buy shouldn’t necessarily
be discouraged by these figures though. Germany is, in
many ways, a buyer friendly market. For example
20
property costs have only risen 2% in the last 10 years.
Expatriates can also expect to find relatively low
0
mortgage rates, which have averaged just under 4%
over the last 10 years. However, expatriates looking to
purchase should know that lenders usually require a
-20
20% deposit and 3-5 years of earnings statements.
Price-to-income ratio
Price-to-rent ratio
Countries ranked by the avg of two
indicators, from highest to lowest.
Source: OECD Housing Prices
Database.
“UNFURNISHED” RENTALS
Germany could very well be referred to as a “renter
nation”. In large city centers such as Berlin, the rental
property market is substantially saturated, a good sign for
Expatriates looking to rent properties. The average
monthly rental cost of a single bedroom apartment in
Berlin is under $800USD. However, there are a few
surprises when renting in Germany. US expatriates should
be cautious with “unfurnished” housing. Unfurnished
apartments in the US lack furniture but commonly include
amenities like a stove and refrigerator. In Germany
unfurnished apartments usually lack all electronic
equipment and even cabinets. Expatriates should set aside
additional funds in preparation for apartment furnishing.
GMS and our on the ground partners will provide thorough
market research prior to and when you arrive to ensure we
find a place that you can reasonably expect to occupy for
an extended period of time. Housing costs may vary greatly
according to desired amenities, luxury, and area of
Germany.
GLOBAL MOBILITY SOLUTIONS
02
Global Mobility Solutions
SPOTLIGHT ON GERMANY
SCHOOLING & EDUCATION
The national government only plays a minor role in the provision of education in Germany
and the responsibility for schools lies primarily with individual states (lander). Therefore,
differences in the curriculum, teaching style and facilities may vary depending on area.
The 5 Types of Secondary Education in Germany
Gymnasium
Realschule
Hauptschule
Gesamtschule
Sonderschulen
Designed to prepare students for tertiary education and finishes with final examination
after grade 12 or 13.
Offers broader education for intermediate students and a range of vocational subjects
in addition to the traditional academic courses. Final assessment after grade 10.
This type of school offers students a vocational education with a final examination that
takes place after grade 9 or 10.
School which combines academic courses with vocational ones and allows the student
to transfer to either Hauptschule or Realschule in grade 10.
Another type of school which prepares students for Hauptschule or Realschule. Only
one in 21 pupils in Germany attends this type of school.
INTERNATIONAL CURRICULUM
The majority of expats living in Germany opt to send
their children to an international school. These schools
provide the best option for expats as they eliminate
concerns surrounding the language barrier. German
cities like Berlin and Munich have large numbers of
international schools which cater to students of a
variety of nationalities.
International schools generally offer a high standard of
learning, smaller class sizes and a variety of extracurricular activities. The downside to sending a child to
an international school in Germany is the hefty price
tag. On average, expats should expect to spend
$18,000 (USD) per year on tuition fees.
GLOBAL MOBILITY SOLUTIONS
03
Global Mobility Solutions
SPOTLIGHT ON GERMANY
VISA AUTHORIZATION REQUIREMENTS
Expats planning to stay in Germany for greater than 90 days must obtain a
residence permit in the form of a visa. The following is a brief description of
the three common immigration categories by assignment type:
Work permits for local or new hires: Compensation for the position and conditions
of employment should meet standards in the country. A labour market check may
be required.
Blue Card EU: Work permit exemption or expedited processing for highly qualified
local hires holding a recognized university degree, and earning a certain level of
gross annual salary, and employees belonging in the scarce occupations category
holding a recognized university degree and earning a certain level of gross annual
salary.
For more information and
additional visa categories visit
www.Germany.info/visa
International Personnel Exchange: For assignments up to three years. This option is
available if the sponsoring company is registered for this program and the employee
remains on a home contract. For this application the employee/assignee must have
an undergraduate or graduate degree and not earn less than a German citizen would
at the same job.
TYPICAL VISA PROCESS
Approximate overall processing time from the time the
first step is submitted to the time the employee is legal to
work in Germany is four to eight weeks if filed in Germany,
or five to ten weeks if filed at a German consulate.
However, note that lead time for document gathering at
the start of the process should be factored in, as should
processing time for completion of post arrival formalities.
The typical work visa aqcuisition follows four steps:
1. Work Permit Application (1 - 5 weeks)
2. Town Hall Registration (1 day)
3. eAT Application Submission (1 day)
4. Collection of eAT Permit (3 - 4 weeks)
Expats should note that eAT Submissions require an in
person appointment at the local immigration office.
Applicants should be prepared for waiting periods of up
to 4 weeks.
*This summary is intended for informational purposes only, and is
not an authoritative guide on how to obtain work authorization.
GLOBAL MOBILITY SOLUTIONS
04
Global Mobility Solutions
SPOTLIGHT ON GERMANY
LANGUAGE & CULTURE
The official language in Germany is German. The
population is 91.5 percent German, with Turkish being
the second largest ethnic group at 2.4 percent. The
remaining 6.1 percent is made up primarily of those of
Greek, Russian, Italian, Polish, Serbo-Croatian and
A traditional German Jester’s hat
worn during Karneval.
Spanish descent. Germans place a high priority on
structure, privacy and punctuality. The German people
embrace the values of thriftiness, hard work and
industriousness.
Germans are also a highly celebratory people. In fact,
there are more public holidays in Germany than in any
other European country. Festivals such as Oktoberfest
and Karneval attract crowds of people from all over the
world.
DOING BUSINESS IN GERMANY
Expats moving to Germany are likely to find that the
German work culture differs quite dramatically from their
home country. Working hours in Germany tend to be
fairly short with most work days ending at 4pm. This
however should not give the impression that the Germans
are in any way relaxed or lazy when it comes to their work.
Germans are very focused and tend to put an emphasis on
efficiency and productivity in the work place. While this
means they may put in less hours than workers elsewhere,
the Germans are generally very productive.
Expats will find that there will be very little time spent
making small talk or socialising during the work day. Lunch
breaks are typically around 40-45 minutes. German
employers tend to be very strict when it comes to time
keeping; punctuality is expected and lateness is frowned
upon.
GLOBAL MOBILITY SOLUTIONS
05
Global Mobility Solutions
SPOTLIGHT ON GERMANY
CONNECT WITH GLOBAL MOBILITY SOLUTIONS
Founded in 1987, Global Mobility Solutions is a global corporate relocation services company that
specializes in workforce mobility. The company’s corporate services include global assignment
management, domestic relocation management and a range of pre-decision solutions. Global Mobility
Solutions was ranked second in the relocation industry for overall customer satisfaction in HRO Today’s
Annual Relocation Survey.
Online Resources
Phone & Email
www.gmsmobility.com
1.800.617.1904
Linkedin: Global Mobility Solutions
[email protected]
Baker’s Dozen
Customer Satisfaction Ratings
RELOCATION
2014 Winner
GLOBAL MOBILITY SOLUTIONS
05