Global Mobility Solutions SPOTLIGHT ON GERMANY

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1 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. 0 1

2 EXPATRIATE HOUSING House Prices across the OECD % over or under valuation relative to long term avgs. Expatriates should expect a housing market geared % BEL CAN NOR GBR FRA SWE AUT NLD DNK ESP EA ITA USA GRC PRT GER toward renters during their home search in Germany. With home ownership at 43%, Germany has one of the 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% deposit and 3-5 years of earnings statements. -20 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. 0 2

3 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. 0 3

4 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. 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. For more information and additional visa categories visit 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. 0 4

5 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 Spanish descent. Germans place a high priority on structure, privacy and punctuality. The German people embrace the values of thriftiness, hard work and industriousness. A traditional German Jester s hat worn during Karneval. 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 minutes. German employers tend to be very strict when it comes to time keeping; punctuality is expected and lateness is frowned upon. 05

6 CONNECT WITH 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 Linkedin: Global Mobility Solutions Phone & info@gmsmobility.com Baker s Dozen Customer Satisfaction Ratings RELOCATION 2014 Winner 05