Opening a bank account

To be able to work and live in Berlin, open an account at a German or alternatively European bank that allows SEPA transfers. The account is required for the following purposes:

• Salary or income payments
• Rental payments
• Tax payments
• Online and offline purchases

Which bank exactly you can open an account with depends on your residence status. Different banks have different offers. Commerzbank, for example, offers an account for English-speaking new arrivals with a residence permit, while Revolut and Tomorrow Bank offer accounts for new arrivals without a residence permit. Vivid Money, Wise and bunq also offer accounts for new arrivals without a residence permit. These are just examples - there is a wide range of options.

To open an account, you will generally need the following documents:

• Identity card or passport
• Registration certificate
• Depending on the account type, a wage certificate
• Depending on the bank, a work permit

Ask the bank of your choice directly whether a wage certificate and/or work permit is required. This varies according to the bank.

As soon as you have completed the above documents, open a giro account with a debit card. Depending on the bank, you can do this by phone or online. You can find information about this on the banks' websites or by talking to a consultant in person. Many banks in Berlin offer advice in several languages.

OUR TIP

Our colleagues from ALL ABOUT BERLIN provide detailed information about opening an account in Berlin. Here you will find everything you need to know about bank account types, fees and ATMs. Check it out!

Taxes and salary: from gross to net

Today is your first day at work. You must give your employer your tax identification number today. If you do not have a tax identification number, you can apply for one at the tax office (Finanzamt) in your borough. The required form can be downloaded from the tax office website.­­ 

OUR TIP

Make a personal appointment to submit your form to the tax office. To do so, you need to present your passport or identity card, birth certificate and proof pertaining to your income tax classification, such as a marriage certificate or your children’s birth certificates.

Once your employer has your tax identification number, he will contact the tax office himself. Your income tax will be deducted each month from your gross salary in the form of payroll tax and submitted by your employer to the tax office. In addition, the employer pays a share of the contributions to unemployment, health, pension, accident and nursing care insurance. The prerequisite is that you be insured with a public or private health insurance provider. The resulting net income will be transferred directly to your bank account.

OUR TIP

With the income tax calculators from arbeitnow and ALL ABOUT BERLIN you can calculate your net income after taxes and social contributions and based on your gross salary in just a few seconds. Check it out!

In Berlin and indeed in Germany as a whole, every employee is assigned by their local tax office to a payroll tax band. In total, there are six different payroll tax bands that help your employer determine how much payroll you need to pay. The payroll tax is a prepaid income tax that is automatically deducted from your salary on a monthly basis before you get it. 

Your tax band changes whenever your family situation changes, such as when you get married, split up, a spouse dies, or if you have a child as a single parent. If, in addition to your job, you also accept a part-time job for which you need a second payroll tax card, your payroll tax band will also change. 

To help you determine which tax band will be assigned to you, we have summarized the most important criteria and provided the associated monthly tax free allowance that will apply for you: