New here? Check out GermanPedia​ Did someone forward you this? Subscribe to this newsletter. Your unfair advantage in Germany

​

Advanced tax is due on your ETFs in 2025

Governments come up with innovative schemes on how to tax people. German government developed one in 2018 by introducing an advanced flat rate (Vorabpauschale).

In layman's words, the tax office assumes a fictitious income from your ETFs and charges a tax on it. It doesn't matter if you actually sold the ETF for profit.

Furthermore, if you sell the ETFs at a loss at any point in the future, you won't get the paid tax back.

I know you want to say it. CRAZYYYY...

There is a silver lining, though. When you sell your ETFs for profit in the future, you won't pay the taxes twice. The tax you have already paid will be deducted.

What can you do about it?

• Keep enough cash in your brokerage account. Your broker will calculate and pay the advanced flat rate on your behalf. However, for this to work smoothly, you should have enough cash in your brokerage account.
• How much cash is enough? For every 10,000€ of funds volume, you need 46€ in cash.
• Offset losses and tax paid from profits: Yes, you won't get the tax paid back, but you can offset it against the future profit.
• ​Set up a tax exemption order at your bank and broker.

Does this all sound too complicated? Of course, it does.

This is why we recommend consulting a tax advisor. This takes us to another problem.

Where will I find a good English-speaking tax advisor with reasonable fees?

No worries, we found one for you.

You can book a tax consultation call, request services like changing your tax class and tax residency certificate, or request a free quote directly via GermanPedia.

The best part is that the tax advisor charges a flat rate for their services. This ensures you know how much filing a tax return will cost you before committing to it—no surprises.

Germany health reform

Germany’s hospital reform will become law on January 1, 2025, after passing through the Bundesrat. The most important change is how the hospitals in Germany will be funded.

How was it before?

Before this reform, hospitals and clinics were paid for the treatments they performed. There was no reward for providing services. It's like only paying the fire brigade when there's a fire.

This led hospitals to prioritize treatments with higher profit margins, ignoring or avoiding other treatments.

How will it be after the reform?

After the reform, hospitals will receive guaranteed funding based on the services, staff, and technical equipment available. This will encourage hospitals to have proper staff, specialists, and equipment.

In the end, it will benefit patients. Patients will not have to wait or travel to another city to visit a specialist.

Moreover, patients don't have to get treatment that isn't medically necessary but profitable for the clinics.

News

A cyclist was killed in traffic this week in Berlin

A 38-year-old cyclist dies on the spot after being hit by a BMW. Every year, around 250 cyclists die in road accidents. Thus, wearing helmets and having proper gear is critical when you hit the road.

You must have front and back lights and reflective vests so that people can see you in the dark. Most importantly, be careful.

Angela Merkel's autobiography was released last Tuesday

Have you ever wondered what drove Angela Merkel, the former German chancellor, when she made key decisions like phasing out nuclear plants, blocking Ukraine and Georgia from joining NATO, welcoming 1 million refugees from Ukraine, etc.?

The book Freedom: Memoirs 1954-2021, can give you some answers.

Please ignore the reviews on Amazon. The reviews are more about criticizing the author and not the book.

If you enjoy politics and want to gain insights into Angela Merkel's mindset, give this book a try.

Community Shoutouts!

• Enjoy the last FREE SUNDAY MUSEUM - The Berlin government has cut the budget for Berlin cultural activities. This includes the end of free entry to the city's museum on the first Sunday of the month. 1 Dec. 2024 is the last Sunday you can visit your favorite museum for free.
• In our last poll, most people selected the "Retirement/financial planning course." So, we have started working on it. We had our first call with the expert and created the initial course outline. We are excited to work on it and will keep you posted.

Submit your shoutout now, and let’s spread the awesomeness! 😊

Whether it's a must-visit place, a life hack, or an inspiring story, we’d love to hear from you.

Your feedback matters

​​​​

​