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How to found a company in Germany: 14 "easy" steps and lots of pain

nicbou
421 replies
22h13m

I document German bureaucracy for a living,[0] and everything is like that. Every life event - immigrating, getting a job, getting married, having a child, buying a car - is mired in slow, paper-based bureaucracy. It is a constant, significant impediment to life in the country.

Just last week, I was telling people that the best way to get married in Germany is to get married in Denmark.

I cannot overstate how terrible German bureaucracy is, and how defeating it is to deal with it. A lot of people give up and leave the country over it.

[0] https://allaboutberlin.com

hariharan_uno
127 replies
21h32m

I completely agree. I have been living here for 8 years, and recently applied for a permanent settlement permit.

My application went into a blackhole for more than 4 months, while my existing permit expired, essentially making me a prisoner here (I can stay and work in Germany but if I travel internationally, I won't be allowed entry back).

Meanwhile, my applications for a temporary travel permit were unanswered for months. There is no way to contact the foreign office (no email, no telephone, no fax). You just send your application and pray.

I strongly advise anyone to stay away from Germany if you have better options. This country is a bureaucratic nightmare in general.

nicbou
29 replies
21h23m

Mine too! My residence permit expired in February, and my appointment is in July. I expect to have a valid residence title again by end of August.

Mind you, I applied in December. I will not be able to travel out of the country for most of the summer as I wouldn't be allowed to reenter.

They refused multiple times to issue the temporary permit that I'm legally entitled to. I'm having a lawyer ask again, this time with the threat of a lawsuit.

It's such a common problem that I had to write a detailed article about it. People miss weddings and funerals because the immigration office is months late. The number of lawsuits due to inaction is growing exponentially since 2019.

nixass
17 replies
11h17m

Folks, you can travel outside of Germany for sure, as long as you stay inside Schengen.

mkesper
7 replies
10h12m

Please add a link for people relying on this info.

stavros
6 replies
9h52m

A link to what? Travel within the Schengen area is unrestricted, you can drive or fly to wherever you want and nobody will check passports.

rkachowski
4 replies
9h22m

This isn't true, this year I have been on a train from Marseille to Berlin and German police checked everyone on the train for passports at the border specifically to check residence validity - and removed one passenger with a residence permit as he attempted to reenter Germany (he was informed he was not initially permitted to leave)

stavros
3 replies
9h19m

Those are random spot checks, there's no border between France and Germany where everyone's passport will be checked.

bondarchuk
2 replies
7h30m

"nobody will check passports"

"Those are random spot checks"

So there are random spot checks where people will check passports. So "nobody will check passports" is false.

stavros
1 replies
7h28m

Fine, word lawyer, "nobody will check passports above the base rate of passport checking you may get anywhere, including any random trip".

dagw
0 replies
7h13m

If you're going to risk your future permanent residency, it is very important to know exactly what that 'base rate' is. As someone who travels a fair bit within Schengen, I can tell you that the rate is quite high, much higher than it was a few years ago. And if you happen to look "un-European", the rate is quite a bit higher.

berdario
0 replies
8h40m

That's true, and if you're doing intra-Schengen travel to attend a relative's funeral, I'd consider risking it...

But otherwise: keep in mind that the freedom of movement is reserved to EU citizens (and their families): if you had to get a residence permit (and thus you're a non-EU national), you don't have the same rights.

Even without temporary (Covid, terrorism, etc.) internal checks, you can be stopped by police (national laws will differ) and be asked to show proof of id, and proof of your right to stay.

The fact that you have a pending residence application in progress will usually give the right to stay in the country that you applied in, but that proof might be as flimsy as as a stamped slip of paper (not even a A4 paper with a letterhead) and/or an email in the local language. Don't expect German police to be able to read and accept your Italian piece of paper, or viceversa Italian police to read and accept your piece of paper in German.

In fact, the same applies for non-EU family of EU citizens: the residence permits will be denied only in extreme cases (e.g. terrorism)... if you're just a non-EU citizen, there are even more situations in which that would apply. Imagine that the country that you applied in might refuse your residence permit: you'd then have to leave the country and Schengen (or file some kind of appeal), and that would make it even clearer that you wouldn't have right to stay in another Schengen country.

So, you might not have right to stay (in another Schengen country), and even if you might have it, proving your right might not be easy.

About the

Please add a link

The original request could've made sense (you could have for example linked to directive 2004/38/EC , but that doesn't apply to people who aren't EU citizens or family of EU citizens)... but note that in this case we're trying to prove a negative (the laws will usually describe which rights you have, but not in which case you don't have such a right... you might find a guidance or case law document, but those are scarcer)

Again: the whole situation is really unfortunate, because the laws are also written with the expectation that you won't have to wait long after applying for the necessary documents. And even when the laws are clear about the timelines, the bureaucracy will try to weasel themselves out of it, for example Article 10 of the aforementioned directive states:

The right of residence of family members of a Union citizen who are not nationals of a Member State shall be evidenced by the issuing of a document called "Residence card of a family member of a Union citizen" no later than six months from the date on which they submit the application. A certificate of application for the residence card shall be issued immediately

Of course, when we had to deal with it, the bureaucracy just asserted that until you show up for the appointment (which you had to wait more than 3 months for, since you originally applied), you haven't actually "submitted your application", yet.

As an EU citizen, realizing first-hand how slow, uncertain, and oppressive our immigration system is, really left a bad taste in my mouth... If you're not a citizen of the EU or an “Annex II” country, I wish you good luck when applying for a Schengen visa, but in case that you might get rejected: don't sweat it, and just consider other destinations, if you're planning a vacation... there are a bunch more places with friendlier visa policies (e.g. Turkiye, Cape Verde, Morocco, UAE, etc.)

egorfine
7 replies
8h23m

Theoretically, yes.

Practically, not anymore: there are block posts on main roads into Germany and they check passports.

gambiting
6 replies
8h13m

Uhm, no - when did you try travelling last? I just crossed the border to Germany from Poland(both ways) and there is nothing there. And before that I drove over in January and there was a huge queue because of "checkpoints to combat illegal immigration" and that checkpoint was just a bunch of border guards standing there looking at cars passing by, they weren't checking passports or much of anything really, it's all just theatre.

Also did you forget flying?

egorfine
3 replies
8h4m

About five days ago, Szczecin → Berlin, stopped, had my documents meticulously examined and asked some typical questions I haven't been asked for a decade ("What's your proof of residence", etc).

I look like a typical WASP programmer in his forties, so no selection bias or something.

tietjens
1 replies
6h35m

What counts as proof of residence in this case? Asking so I could prepare.

gambiting
0 replies
8h0m

I guess it's just random stops or some checkpoints are more stringent than others.

nicbou
0 replies
8h4m

I did get checked a few times while heading from the Balkans back to Germany. There are also random checks in buses and trains.

aeyes
0 replies
5h38m

They pull out some cars, last winter I got pulled out at the border when I entered Germany from Austria. They wanted to see our passports and asked where we were going.

slowmotiony
0 replies
7h19m

"Folks, you can travel outside of Germany for sure, just avoid the police, the border authorities and don't get caught."

chironjit
6 replies
21h6m

I'll one up you and say that it's so broken, there are lots of people that basically live on ranges of exceptions.

In my case, I was told I was not eligible for the visa I needed but when I spoke to a migration consultant who knew the process, they managed to get it done. I was pretty shocked as this wink, wink, nod, nod style system is not something I expected from this country.

ffsm8
2 replies
14h10m

Germany's head of state was involved in the biggest financial scandal of its existence and forgave a corrupt bank that stole millions of taxes just a few years before going into office.

corruption is spreading like a plague with no consequence in sight for anyone involved.

tcmb
0 replies
12h0m

Olaf Scholz is the head of the government, Germany's head of state is its president, currently Frank-Walter Steinmeier.

marenkay
0 replies
11h48m

If you believe corruption is just spreading now, you missed every single politician since the founding of Germany. Or every other country on the whole planet therefore.

Wikipedia documents that well enough.

fps_doug
1 replies
11h19m

This sounds like all of you are living in Berlin, which is known as "failed state" to the rest of Germany. ;-)

It varies form city to city, I live in one that I'd say is an exception on the positive side: Most clerks in the various offices are actually helpful and even giving you hints. I had to renew my passport in January and got an appointment the next day. I got the appointment online(!) in Germany(!!). Passport could be collected 4 weeks later. Meanwhile an ex-colleague who lives in Berlin had to wrestle with his nearest office to even get an appointment for a passport renewal, then gave up and made an appointment with the office in the neighboring district, where it was still a 4 weeks wait. He told me there are districts where it takes up to 6 months.

I guess if you want pain and suffering, move to Berlin. :o)

apflkx
0 replies
2h42m

Unfortunately, this is not just a problem limited to Berlin :-( [1][2]

It's been an absolute mess trying to secure my wife's settlement permit ("Niederlassungserlaubnis"). She has a german Master's degree, works in a government-funded research facility, and has been in the system since December 2022. We've now been ghosted for 14 months, only to be told to make an appointment to provide additional documents (which were not on the 'required documents' list they initially handed to us). After checking the appointment booking website to no avail, I came up with a python script that sends a notification to our phones when a new appointment pops up. It took 40 days of scraping until a new free appointment was available, only to be allowed to provide paper documents in person.

Adding to that, every six months, her employer threatens to fire her if she can't prove her legal status in Germany. So she's constantly jumping through hoops to get this temporary paper permit called "Fiktionsbescheinigung" just to keep her job. It's a hassle, costs €13 each time, and involves cycling through multiple unhelpful bureaucrats at the Ausländerbehörde's hotline (they do not answer emails) until finding one that very reluctantly produces this document.

All of this is beyond frustrating.

[1] https://www.merkur.de/deutschland/muenchen-kvr-auslaenderbeh... [2] https://www.swr.de/swraktuell/baden-wuerttemberg/stuttgart/a...

nicbou
0 replies
16h45m

Yes, bureaucrats can act as gatekeepers for things that you are legally entitled to, and create various bureaucratic hurdles. It's usually mere thoroughness, sometimes incompetence, and if you cross them, vindictiveness.

I was told more than once by very knowledgeable people that if you anger a case worker, they can and will make your life hard by nitpicking every little detail and asking for as many documents as they can.

This happens for example if you get angry at their incompetence, or if you sue them for inaction (although in Berlin they see it as normal business by now).

wouldbecouldbe
3 replies
11h55m

Try Spain, takes years

pezezin
2 replies
10h17m

I guess that depends on the city and the procedure, but I had to replace my DNI last summer and it took me less than 30 minutes, and they gave me the new one on the spot.

In comparison I also had to renew my Japanese foreign card and later my ID card, and both procedures were a royal PITA, and in both cases I had to wait a month to get the new card.

wouldbecouldbe
1 replies
9h7m

Yeah had a close person getting passport after marriage, took years, they made a mistake, another 1.5 years. Took over 5 years in the end.

Lawyers making mistakes, civil cervants making mistakes, making mistakes themselves. Big mess. They are actually breaking EU law while doing these things.

ricardobayes
0 replies
7h56m

That actually was very interesting for me, living in Spain, how extremely common mistakes were in data entry, generally. If anyone hands you a form to check your details, you can almost guarantee to find some issue. I've never noticed this living in any other country yet.

callalex
26 replies
20h17m

From a USA perspective, I find that usually when a bureaucratic process is hopelessly broken, it is because a small portion of the population actively hates the people that would benefit from the process and want to harm them. However they cannot legally or popularly discriminate against them so instead they destroy the processes that benefit the hated group. Do you get that impression where you are too?

physhster
6 replies
20h6m

Given the amount of immigrants in Europe in general and in Germany in particular, I don't think they are trying to deter people. Or if they are trying it's not working.

The incompetence is not confined to immigration, it's pretty much everywhere. Same goes for France actually.

philsnow
3 replies
19h50m

The impression I got from the last time I was in Germany (some ~7 years ago), there's a going concern among at least some people that a certain ethnicity of immigrants is "taking over". This might be a pearl-clutching minority, or I may have completely misread the situation.

nicbou
1 replies
16h35m

There seems to be a growing frustration about asylum seekers who moved to Germany and did not adopt German values, a theme you will find in every country.

It's scary because the party that complains the most about it is gaining traction, and it convinces centrist parties to change their stance on immigration. It's not a pearl-clutching minority anymore, but a politically advantageous position.

As an immigrant, I feel like we're about to live a variation of the Niemöller poem. "First they came for the asylum seekers..."

bluecalm
0 replies
5h36m

Well, when you come to a country you should make an effort to adopt the country's values and customs. If you stay for longer you should also make an effort to learn the language.

If you are not doing any of that is that really that surprising that people are getting fed up with it?

Escapado
0 replies
18h59m

German reporting in. Disclaimer: I am biased as I think immigration is great and I wish the process was easier and faster for those seeking to live in Germany. I think your observation is sadly very correct and this minority is very well measurable and concerningly large and growing in a lot of places. Just look at how many people vote for the AfD. Those are the ones having that concern. Luckily some places(e.g. Hamburg, Berlin) are on average more open to foreigners than others (e.g. Sachsen).

chii
1 replies
14h14m

i wonder how much of the "incompetence" is really just under-staffing, and how much is the public servants being paid to essentially do little/no work.

nicbou
0 replies
12h38m

It plays a major role. That, the increasing number of applicants and inefficient, paper-based bureaucracy are the three major causes, I would say.

thsksbd
3 replies
17h17m

If foreigners are in of the hated groups, my personally lived experience serves a counter point.

During my naturalization I was caught by surprise by how quickly my application had been handled. The agent giving me the exam winked and said: "it's election season".

Whatever that means.

moomoo11
2 replies
17h4m

Are you highly educated?

My father has only a certificate and no degree or anything like that.

It took him 20 years to get citizenship. We came 3 years after he come here and we all became citizens together.

My friends whose parents were doctors or had masters degree would get their GC and citizenships in like 5 years.

thsksbd
0 replies
6h57m

You're conflating things. GC is different (albeit necessary) from naturalization. I clearly said my citizenship took 6 months. My GC took 6 or 8 years and I got it through my wife.

For those 6 to 8 years I had a student visa then an H1B. Despite having a PhD in the top US program in my field from a top five school.

My wife got her GC through the lottery before she finished university (ie w/ a HS diploma) with 0 years living in the US

RamblingCTO
0 replies
12h4m

Of course high education and value to the labour market make you a good immigrant, and the lack thereof a "bad" one with less value. Is this something that surprises you?

roenxi
3 replies
18h55m

This perspective remains kinda crazy. Why do US people keep trying to route control of major parts of their life through a system where they believe people who "actively hates the people who would benefit from the process" have significant influence?

People come up with this from time to time but the logical conclusion is small governments. It has been a few centuries now and there hasn't been any progress in improving the quality of the politicians; it isn't going to change. Every single government, literally, has people in it who would be morally comfortable in a Nazi-style dictatorship. Any plan that involves empowering these people is stupid.

dgfitz
1 replies
18h13m

Being a white, middle-aged, middle-class male in America I can say I have no productive things to say about how my local, state, or federal government has benefitted myself or my family beyond the things everyone else also benefits from. I don’t get assistance for anything, I don’t get breaks on anything, no free services, etc.

If your first reaction to this is “well you don’t need anything!” you must be one of the people that was astonished at how the 2016 election went.

No I didn’t vote for the guy and I hope he loses this time.

thsksbd
0 replies
17h12m

Furthermore, I pay for services I don't avail myself of (my kids go to parochial schools). And since I don't live in the city, but a rich suburb, it means that Im subsidizing my neighbor's BMW.

I dont even mind school taxes, actually. I just believe that the monies should follow the student and not the school district.

vineyardmike
0 replies
9h2m

Why do US people keep trying to route control of major parts of their life through a system where ..

Because sometimes you don't have a say, or you don't expect to use it. No politician ever campaigned on making the lines at the DMV move faster. But we (mostly) all agree you should be required to get a license before you drive. Most Americans drive, and few have chose to route this "major part of their life" away from the DMV.

Immigration process (as this thread illustrates) sucks. It's also not a process used by voters.

The process to apply for welfare in most parts of the US sucks, but the actual welfare is valuable. People think by making it harder, it will instead result in people who are less reliant upon it. Welfare recipients are a huge political target constantly. They're the individuals who are "actively hated" in this example, and they're entirely dependent on the system in that moment, because thats how misfortune works.

Many cities making construction permits hard to get, because local residents don't want their neighborhood changing, so they petition local politicians to make the process slower/harder/more-expensive. In this example they "hate" the new construction.

If you're not a high schooler and you're applying to a state-funded university, the process to prove you're a local resident can be surprisingly complicated. This is because it's designed for high school students and all the edge cases are optimized to avoid accidentally providing tax-subsidized "in-state" tuition to an out-of-state resident. For example, I wanted to take a for-fun class at a local university and because I didn't have a local high school to vouch for my residency, I needed to provide (among other things) 50+ pages of tax documents. It took 2 semesters (1y) to prove I lived in the state, and the minimum amount of time you need to live in-state is 1 year.

People who live their life in the "happy-path" case often don't deal with the government, and don't understand the struggle of these edge cases. Plenty of activities require the government. No way around it. Sometimes, people who think "small government" is the solution end up making those processes terrible by making it understaffed or convoluted to "avoid waste".

dotnet00
3 replies
19h7m

As the other user said, this is just the conspiracy politcs obsessed partisan weirdos would like for you to believe. After all, if their side is so benevolent and immigrant loving, why haven't they pushed any genuine immigration system reforms instead of just creating a captive subclass in the form of illegal immigrants?

For instance, if Republicans are really so hateful of certain minorities, why do they not properly go after things like H1B mills (which benefits minorities more than the rich white people that they supposedly want to limit immigration to)? or take effective action to seal off the borders and make immigration policy stricter? As an immigrant myself, I'd take even that over the current hellish system where you spend a decent chunk of your life in limbo, unable to fully settle down because of the uncertainty, since at least then there would be the finality of immediately knowing the doors are closed. The only way the current system is bearable is if you approach it with total apathy, where you avoid getting too attached and just convince yourself that you can also make it in any other country.

Rather than negotiate measures to fix the immigration system (in either direction), both sides would prefer to keep expanding the class of people who are one technicality away from being kicked out, for Republicans it gives them the ability to promise stronger borders every election year, and for Democrats it gives the ability to promise aid to specifically illegal immigrants and of course once elected they can just say that the last guy left a mess and they had their hands full fixing just that or any version of "the other side isn't cooperating/compromising".

A particularly glaring example of this being their inability to agree on a stronger path to permanent residency for PhD holders. Considering that PhDs are generally funded by grants, not offering very easy immigration for PhD holders amounts to training foreigners at your own expense and sending them back to compete with you. PhD holders typically fit the "we only want the best of the best" position of the Republicans (even if we accept the conspiracy that they actually hate all minorities, it'd be a convenient way to 'wash' that image, without having to accept all that many minorities), and for Democrats it would be a very easy "look, we're slowly working to fix immigration" action.

ricardobayes
1 replies
7h48m

In the US, there is a path for PhD holders, to my knowledge, it's called EB-2.

dotnet00
0 replies
4h10m

EB-2 is technically a path, but from all I've heard it's not that much easier than the regular pipeline, since it involves having 10 years of post-degree experience, thus still leaving you at the mercy of the H1B process in the meantime. That process is also still dependent on the employer's willingness to sponsor, and I've seen several cases of employers refusing to go beyond an H1B sponsorship (of course, they only outright say that right near the end of the H1B's maximum term). 10 years is also still on the order of the time it takes to get permanent residency through the normal lottery.

api
0 replies
18h46m

I don’t like to both sides many things but immigration is definitely one case. The system is broken on purpose because US agriculture, construction, and many other labor intensive trades can’t operate profitably without a migrant labor underclass. Nobody wants to fix this. Not Democrats, not Republicans.

Add to that the fact that the Republicans now have a second reason not to fix immigration: they can’t run on it if it’s not broken.

If Trump gets in again he will do a lot of anti immigration theater for his base but nothing will really change. Democrats won’t fix it either. Someone has to pick berries and trim hedges.

emmelaich
2 replies
17h8m

I love this comment because it's such a Rorschach blot, to be read any way you want.

To properly read this in your intended meaning, do we need to find the political and ethnic makeup of the immigration department? Or society at large?

vineyardmike
0 replies
9h21m

(as a fellow American) They almost certainly meant this as "politicians, or their voters, have some bias/hate against something, so they destroy the bureaucracy that benefits those people".

Eg. Republicans hate taxes, so they defund the IRS (tax collectors), to make it harder for the government to audit tax evasion.

callalex
0 replies
6h42m

I wasn’t even speaking specifically to immigration, but I can understand why everyone thought that because of who I replied to.

Newlaptop
1 replies
19h36m

This is not a USA perspective. This is a conspiracy theory perspective from spending too much time in liberal/progressive echo-chambers that repeat fearful, hateful myths about their political opponents.

auzjabbajixkf
0 replies
13h52m

I’m glad you can believe this is true, genuinely. I have hope that maybe this means things will change.

But as a white guy from middle American (in that I lived there for 40 years) who has voted Republican and Democrat and has enough conservative ideas that people are often confused about my political leanings, I can tell you there is some truth to this.

I’ve been in the room more than several hundred times when people who were working in the American bureaucracy openly "decried the horrors of the Mexican invasion ". I will admit the majority of that was my ex’s father but it wasn’t only him. I’m certain he did not make things easier on his Mexican applicants (dmv in his case).

I’ve also heard racial slurs used hundreds of thousands of times, very few people engaging in this voted democrat.

I’m sure there are endless stupid conspiracy theories in progressive echo chambers, I hear them from time to time they are just as silly as republican ones and I would love nothing more the above comment to be correct.

In the end, their experience definitely does not match up with mine and we should all be sad.

switch007
0 replies
13h28m

Nailed it. Then you get Hanlon's Razor obsessed people rushing to defend the government. It works wonders

csomar
0 replies
11h20m

Sure. But why accept these people in the first place? I think if there was a consensus, then they would not be accepted. The US is not shy to refuse them entry or to concentrate camp them somewhere. The reality is that there is two factions; one is for and one is against. So you are in for a wild ride.

niemandhier
23 replies
13h28m

My sympathy for your troubles, but please keep in mind: Everybody is processing Ukranians and Arabs. The system was never meant for such a rapid influx of people.

The people working on immigration are not lazy or unmotivated, they are exhausted.

jamil7
18 replies
13h19m

Have you gone through the process? The system wasn’t “designed” at all, it’s completely broken and chaotic. It is 100% the fault of this system and not that of the immigrants going through it.

Some of the people involved can also be extremely unpleasant to deal with, even if you speak German.

niemandhier
12 replies
13h0m

I accompanied several friends through the process.

My observation was that by simply changing the view on what is happening and extrapolating how to act based on that one can achieve quite a lot.

I told people the following:

1. The person dealing with you is not there to help you, they are simply executing an act of governance. Rather than wanting them to help you, try to help them close their tickt.

2. You are the type of immigrant people actually want. These popele see lots of drama, lies, heartbreak and hopelessness. If you are pleasant and well prepared they will probably like working on your case since it will not make them feel bad.

3. Things take time. Be as early as possible with everything and realize that there early is a way to speed things up.

Keeping those three things to heart worked very well. That does not make things faster, but it takes a lot of frustration out of the process.

amonavis
9 replies
11h30m

To me this is a weird view of government services. I'm paying taxes to have a system serve me, and to have processes support my life not the other way around. Leaving all emotions out of the equation, the job of the jurisdiction under which I fall is so facilitate my legality so I can pursue a productive and enjoyable life. If I'm paying taxes and I'm expected to pitch in the governmental effort, then that's not where I want to be.

duggan
6 replies
10h31m

You can deal with the world either how you wish it were, or how it is.

The reality is that bureaucracies are full of humans – and we all know how humans are.

Rinzler89
5 replies
9h19m

Everything is full of humans, but private companies with terrible processes workers would usually have consequences that demand some change. Government services have no competition sos they are exempt from consequences if they're terrible.

malthaus
1 replies
6h38m

ah - i see you've never dealt with vodafone germany customer support then

Rinzler89
0 replies
6h32m

Can you read my previous point? Vodafone Germany has competition, I'm not forced to be their customer if I don't want to, but I can take my money elsewhere.

Meanwhile I can't choose between other government services while in Germany but those terrible forced upon me by the state.

amaccuish
1 replies
6h25m

Before the war when I studied Russian, I had the unpleasant experience of having to get a Russian visa, which is usually subcontracted to "VFS Global", a private company. Didn't do anything to improve the experience at all.

Rinzler89
0 replies
6h22m

Private means nothing if it's just another monopoly without any competition.

duggan
0 replies
37m

Plenty of exceptions to that – broadly speaking, oligopolies, but generally anywhere with low competition like the only convenience store in a locality, rural broadband, etc.

There is no perfect competition, supply doesn't perfectly meet demand, and incentives aren't always perfectly aligned ¯\_(ツ)_/¯

In any case, government services change through policy and, thus, indirectly, through the electorate. But a) it lags, b) is not the only issue the electorate care about, c) the supply of money is not infinite, d) the supply of labour is not fungible and e) in this specific case, policy on immigration is generally driven by people not immigrating, so the incentives are not aligned.

column
0 replies
8h33m

When you pay for a service, public or private, you are still dealing with humans that are not your slaves.So be kind and you'll get a better time or be entitled and you'll go to the bottom of the pile.

Hendrikto
0 replies
9h6m

You can either try to make that ideal work, or accept reality.

egorfine
0 replies
8h20m

So much this. As a ukrainian, I have been immensely helped by the government officer in Germany while applying for temporal protection - just by being nice and understanding.

Still took months with no success, because the German bureaucracy is in complete disrepair and is brain damaged.

Ratelman
0 replies
11h51m

This is a brilliant view and probably applies to most situations when a person has to process something - not just government and not just Germany. Very, very few people outright don't want to help - if you come in trying to be the light in their day, they'll WANT to help you get your things done quickly and efficiently, and vice versa. A kind reminder, thanks @niemandhier

Semaphor
2 replies
11h49m

Not myself, but I accompanied my wife every time, and she’s now a permanent resident. The last time we just wanted to extend her temporary residence permit, they even advised us that we have no reason to do that and could just apply for permanent residence (which we then did).

Waiting times are annoying, but that is because of an overloaded system, everything else was pretty painless.

jamil7
1 replies
5h15m

I'm glad it was straightforward for you. I've gone for a number of temporary visas and had mixed experiences. I was in a very similar situation on my last visit and was, like your wife recommended to go straight for permanent residency, which ended up being a 6 month process with multiple visits and dealing with about 4-5 different people. This was all happening during the immigration reforms so that might have been a large part of the problem (requirements changed mid-way through).

Semaphor
0 replies
4h59m

Ouch, that sounds painful. Permanent residency took 1.5 months and only required one more visit once everything was done.

shiroiushi
1 replies
8h47m

Some of the people involved can also be extremely unpleasant to deal with, even if you speak German.

Isn't this just German culture, though? I had that experience just buying groceries and going through the checkout line!

allarm
0 replies
3h35m

Absolutely not. I've lived in 2 cities in Germany for 2 years and Germans are the nicest people I've ever met. That's my second immigration and I travel a lot, so I can compare.

mdekkers
1 replies
13h4m

Everybody is processing Ukranians and Arabs.

That’s nonsense. The Ukrainians go through an expedited process. Before the war we put in an application for my spouse - 3rd party national spouse of an EU citizen process - we applied pretty much the day after we arrived and a few days before we left the country to live elsewhere (2 1/2 years later) we got a letter that they are considering giving her an appointment.

The German bureaucracy sucks hard.

niemandhier
0 replies
12h55m

It’s the same people that get allocated tasks generated in those processes. They even get shifted between departments.

It does not really help to have separate queues if those are served by the same worker.

danielbln
1 replies
10h25m

It was already a shit show 10 years ago, so while the influx surely didn't help, it isn't like it wasn't broken already.

nicbou
0 replies
7h32m

Syria, Brexit, covid, Ukraine. At this point they should have adapted.

makeitdouble
12 replies
18h32m

As far as I know, it's par for the course for immigration in most countries I ever heard of. On the other hand, anyone who heard of consistently nice immigration procedure for normal people (not Messi) should chime in.

From a incentive strucutre POV, they lose nothing from false positives (denying entry to someone who would have been fine) as candidates will probably try again anyway, and no one will come after them for their shitty procedures as by definition applicants aren't full voting citizens and stay in a weaker position possibly all their life (imagine filing a complaint and having your name on a black list the rest of your immigration life, even if that list probably doesn't exist. That fear alone is enough to let a lot of things slide)

barbazoo
5 replies
18h18m

Other countries that see immigration as an opportunity have systems that are far far superior to that of Germany. In Germany it's often not clear what status a process is in and no way to get updates. There often is no web portal or anything like that, it's nuts. For instance you submit an application for the retention of your German passport and then basically wait 2+ years for the answer to come back. No one answered my questions. It's very frustrating. On top of that I got threatened with the BKA if I didn't surrender certain documents without ever having been asked to in the first place. Straight to escalation. It's just very unpleasant. Maybe that should be their motto.

makeitdouble
3 replies
17h6m

Yes, the country needs to be both competent and strongly willing to court new comers and permanent residents in the first place.

On your experience, it really feels like a PITA. It won't help, but Japan and France are basically the same. You'll see procedures listed as typically taking 2~3 months, check back every now and then, and low and behold a year and half later you have absolutely no idea of what's going on, if your submission has been forgotten or is contentious. There's no recourse as long as you haven't been refused, so it's limbo until something happens.

People are right to bitch about these lengthy and utterly frustrating procedures, I just don't see a way out of it short of being rich, famous or finding a loophole that lets you force a government agency do something in a timely manner without getting a target on your back.

To note, France had much progress in the last decades, in that bullshit requirements were made illegal a few years ago. At least you can check everything needed on an official site and not be subjected to petty additional requirements when dealing with the local entity (yes, that was a thing, probably to make it extra hard for specific portions of the population to properly file procedures)

shiroiushi
1 replies
8h39m

<but Japan and France are basically the same. You'll see procedures listed as typically taking 2~3 months, check back every now and then, and low and behold a year and half later you have absolutely no idea of what's going on,

When did you have this experience in Japan? In my experience, immigrating to Japan is a breeze. Even during Covid, it took about 2 months to process my work visa, and from there everything was fast and easy.

PR is pretty slow, though: my coworkers who have applied are reporting wait times of about 9 months.

makeitdouble
0 replies
7h15m

That might be the difference between the types of visa.

The standard spouse visa was around 4 months (during covid as well) when it should have been pretty quick according to the clerk receiving it. Tried PR at two different times, first time I moved abroad after half a year, before it finished, second time was a year and half from now and it's still pending with no update.

On any of the visa I applied for I'm meeting the criteria on multiple standards (e.g. I'm both a spouse and father of a national, and employed locally) and never got a rejection, so it's just plainly taking a huge amount of time. I got used to it though.

PS: also it's hilarious to write about your romance with your partner, detailing your dates, attach Disneyland photos etc. and imagine officers in their suits reading all of that with straight faces.

lifestyleguru
0 replies
10h26m

The contrast to red carped rolled out for Arab, Chinese, or Russian billionaires is staggering.

Rinzler89
0 replies
9h18m

>Other countries that see immigration as an opportunity have systems that are far far superior to that of Germany.

Do you have any examples for this? Genuinely curious.

From where I stand most EU countries right now are talking steps backwards on this as they've become overloaded with migration waves, housing shortages, stagnating wages, which increased the far right support, so the hot topic now is how to discourage ALL immigration, not how to make life better and easier for SOME immigrants to attract them.

Sure, you obviously want to encourage the useful skilled immigration, but like I said, from where I stand it seems countries don't distinguish and are trying to make life hell for all immigrants just to plase the right wing voters since those would be frothing at the mouth if they heard their government is rolling out the red carped to attract SOME immigrants, so then for simplicity the political issue is binary, IMMIGRANTS or NO IMMIGRANTS.

Rels
3 replies
15h11m

As someone that became a permanent resident and later a citizen of Canada, the process was relatively painless compared to what I read for other countries, and could be tracked along its different steps using a web UI.

Symbiote
2 replies
12h39m

Denmark is the same.

The official website says the wait time for permanent residency is "up to 10 months", and searching Reddit suggests 3-6 months is more normal.

Denmark is not particularly welcoming to immigrants, but they do with rules rather than inefficient paperwork.

miningape
1 replies
9h17m

Hell no. I applied for citizenship over a year ago now and no communication has been made with me. I'm also not sure where this "up to 10 months" is coming from because when I applied (and recently checked) it says "over 2 years". On top of that I'm not sure what reddit you're looking at, but the ones I'm looking at are constantly complaining about how long the process is taking - how they expected it in 2022 and are still waiting in 2024.

Also this "web ui" is so bad and difficult to work with. I lost all the data I input at least twice, also the forms do no seem up to date with the requirements (requirements on newindenmark are different from what is presented on the form).

nicbou
0 replies
12h40m

From a incentive strucutre POV, they lose nothing from false positives

I strongly disagree. If you try to attract skilled labour, such hurdles can keep many of them at bay. Germany can become known as a country that's not worth the fight. I have seen a _lot_ of stories about people giving up and leaving, usually because of immigration office delays, but sometimes because they were worn down by other demands.

It also affects the bottom line as Germany becomes a country businesses avoid, either because it's too much effort to set up the business, or too much effort to attract international talent.

You are right that immigrants are invisible as a voter base, but the cumulative effects of their neglect are significant to the German economy, and to the pensions of people who can vote.

lifestyleguru
0 replies
11h24m

The entire second paragraph is negative selection. Some countries like Germany, Switzerland, US are highly desirable but there is no reason to be so arrogant about it. This way e.g. Germany chased away entire generation of millennials from post-Communist countries. Now Germany is receiving the profile of immigrants they deserve - they have a handful of passports and diplomas each, and most are forged.

ab_testing
11 replies
18h37m

Not saying Germany is slow, but that is one area where US is far behind. 21 Months - This is the current processing time for a green card after you have sent in all the paperwork to the USCIS for processing. During that time, you get no updates and of-course if you leave the country without AP, your application is considered to be abandoned.

https://imgur.com/a/t8rYOjv

a_bonobo
8 replies
17h14m

It's the same in Australia; when you apply for permanent residency your application goes into a black hole. I wanted to learn more about my status and all I got back from the immigration people was 'the agent processing your application will contact you. We do not give out contact details for your agent. You will have to wait'. It took about 8 months.

Once your 'regular' visa expires you go onto a bridging visa which same, you can't really leave the country.

It's expensive as hell too: I think in the end I had a total cost of $7,000, just in application fees. Sounds like immigration is horrible everywhere.

rtpg
5 replies
13h38m

Japan immigration (if you have a college degree) seems to be pretty high up there. PR takes a while, and processing is a bit of a black hole, but generally speaking you apply, application extends your visa a bit, and they get back to you within the period. And it’s maybe $100?

People complain but its generally predictable save for applications for a 3 year visa can lead to a 1 year visa or a 3 year visa or a 5 year visa

usr1106
3 replies
11h36m

Isn't Japan the industrialized nation with the lowest fraction of foreigners?

shiroiushi
1 replies
8h48m

AFAICT, Japan has the easiest immigration for skilled professionals, by far. However, this has been the case for less than 10 years, as they totally revamped their immigration laws in the 2010s sometime to try to attract more such people, so of course it's going to take time to see the difference. Japan is also somewhat difficult for foreigners to live in because of the language barrier, but Germany isn't that different here: in my experience as a tourist there, it's nothing like Netherlands where everyone and their dog speaks perfect English. In Germany, the college-educated people generally speak it quite well, everyone else, you're lucky if they know any at all, and it seems like you won't do well living there if you can't speak the language. In Japan, it just depends on your company: a lot of people here have lived here for years or decades and still don't speak Japanese, because their job is in English. German is probably easier for European-language speakers to learn though.

dash2
0 replies
3h13m

My experience in East Germany was that even waiters spoke pretty decent English and would switch to it at any opportunity. Not quite Holland, but not far off. I had a friend who had lived there 10 years and still didn't speak German.

skinpop
0 replies
9h12m

There are other reasons for that. Application is cheap and relatively fast(~3 months in my case).

shiroiushi
0 replies
8h53m

And it’s maybe $100?

Even better, it's 8000 yen, which with the current exchange rate is about USD $60.

worddepress
0 replies
8h53m

Australia "what countries have you been to and when" is fun, if you have traveled a bit. I thought being to Tunisia during arab spring and China and Russia might be issues! Overall it was hours of paperwork. Wife's grandmothers maiden name kinda crap in there too IIRC. Upside is Citizenship was relatively easy after this (because you have done PR already). Just had to learn some stuff about what happens in Canberra :-).

mb_72
0 replies
16h33m

8 months is not that long; these days the wait is longer. However, you are aware of how long the wait will be, there information is right there on the Australian Immigration website: https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-pr...

Providing updates to everyone waiting simply wastes time and resources; again, you know roughly how long it's going to take as the estimated times are provided. Hassling the agent on your case is unnecessary.

Regarding leaving and returning Australia - Bridging Visa class Bs are made available if you have good reasons to be leaving and coming back.

I can see this from two sides - my (now ex) wife went through getting temporary then permanent residency in Australia; yes, it was a pain and expensive, but Australia has high standards of living etc, which is why lots of people want to come here. The other side is this - immigration is one of the reasons why there are not enough houses to buy or places to rent, making life difficult for citizens or people who have PR or TR. So if the process of having more immigrants who also require housing is expensive or difficult, I think you'll find a lot of people are not particular sympathetic.

imajoredinecon
0 replies
16h56m

Some of the US citizen-facing services are very backlogged too. For example, it's around 18 months to get a response when you apply for the US-Canada travel fast lane ("NEXUS").

cscurmudgeon
0 replies
18h8m

Part of the reason is the green card queue size for US is much larger than that for Germany.

The USCIS website also shows your status and gives a rough timeline.

rtpg
5 replies
13h41m

I am a bit flummoxed how you can stay in the country after a permit expires. I’m not for stricter rules but I’ve heard this from several people (I think people in the US as well) and it seems like “permit to enter/leave” is a very weird structure instead of “permit to be here”.

I think most immigration offices in the world are pretty much black boxes, mainly because that’s their coping mechanism to deal with the influx of bargaining from rejections they would otherwise have. But it would be nice to have… some proof of progress.

troupo
2 replies
13h35m

I am a bit flummoxed how you can stay in the country after a permit expires.

In many countries this is viewed as "it's not your fault, it's the state's fault that the state hasn't processed your application yet, so we will not punish you for the state's tardiness"

rtpg
1 replies
13h28m

Hmmm… that makes more sense. My experience was getting a visa automatically extended for N months on application, and applications not ever being processed slower than that. But I can totally see the US having wild backlog, for example

troupo
0 replies
12h8m

In Sweden I waited for my citizenship for almost two years, but yeah it surely sucks

csomar
0 replies
11h11m

I am a bit flummoxed how you can stay in the country after a permit expires.

I think most countries are like this. Essentially, you are in a "on-hold" status until immigration decides your fate. It's supposed to be temporary but it can take years depending on the country and the circumstance.

ant6n
0 replies
12h6m

This exists in Canada as well. Ad long as u apply for the next resident permit (e.g. student permit) before the old one expires u have an „implied status“ that continues as long as u don’t leave the country.

type0
3 replies
20h5m

They use this book called "Der Process" as a manual

rcbdev
2 replies
19h57m

You can really feel that Kafka was an Austrian in his writings.

generic92034
1 replies
10h37m

Is that a correct assignment? Austria-Hungary was a thing back then, but someone born and mostly living in Prague I would not call Austrian today.

nic547
0 replies
9h33m

AFAIK Prague (and Bohemia) had a sizeable german speaking minority until the end of WW2 when they got expelled, so Prague not feeling Austrian today isn't surprising.

Simon_ORourke
2 replies
12h14m

I went down to the local Ausländerbehörde in Berlin (a place where foreigners register with the state), having very very minimal German. I was promptly handed a form in German to fill out. More than slightly flustered and in a bit of rush to get it done, I put down "25" in a box that I thought was age, but in actuality was the number of times you were married. Never much helped my application that I think!

sokols
0 replies
11h18m

That's strange, I remember those forms were trilingual, 12 years ago. German, English and French.

Hendrikto
0 replies
9h2m

I did not understand what I was doing, so I just did something random, and it did not work out for me.

Sounds like that one was largely on you…

kanbara
1 replies
19h49m

mine took like a few weeks and was very painless, even in berlin. anecdata ¯\_(ツ)_/¯

egorfine
0 replies
8h17m

It used to be painless indeed but only and solely in Berlin.

Perhaps too many software developers in the city government of Berlin broke the process to a point it now actually works.

jajko
1 replies
10h44m

This happened to me recently in Switzerland (canton Geneve for insiders, that already explains a bit), but for 12 months.

After being here for 10+ years straight, fully working. Existence of my whole family here and our whole life depended on it, yet I clealy hit a very incompetent (and completely unreachable) bureaucrat. My boss went through same process during mine, 3 weeks and done.

The difference? He is from western part of EU, I am from eastern. Shouldn't make a difference just like colour of skin shouldn't, but it does, in 1000 ways, subtle or not, but this was by far the worst and coming from state/canton.

Utterly miserable and prolonged experience, being in legal vacuum with small kids, while doing everything precisely and timely just like Swiss do and like to see in immigrants. Lost quite a few ideals about Switzerland during those desperate times.

egorfine
0 replies
8h18m

My friend has the same experience in Geneve.

He is living here for like 20 years and still has to fight every year or so for the permit extension.

ktosobcy
0 replies
5h37m

Uhm... In Chile I was in same limbo for almost 4 years - my temp residency expired, before the expiration had option to either leave the country or request permanent residency. I opted for the latter, submitted all the documents and... waited almost 3 years for the resolution. In the meantime I had my ID but it expired and I couldn't request new one. Supposedly with a certificate that I'm in the process of getting permanent residency I could use the expired ID but lots of institutions, especially banks, would simply ignore the law and reject the ID as invalid...

julian_t
0 replies
8h26m

The same kind of thing happens in the US. A relative (a Brit) needed to renew his visa, put in the application and heard nothing for months, and a immigration lawyer told him that it could take over a year to process.

But the lawyer also said that it would be worth trying a consulate overseas, as they were often a lot more efficient. So (as his wife had business in Berlin) he made an appointment with the consulate in Frankfurt. From interview to getting his passport back with visa - five days.

anovikov
0 replies
13h38m

That happens in many countries and usually experience is exactly the same

Havoc
0 replies
18h40m

It’s not just Germany - I’ve got a similar can’t leave situation in UK currently

usr1106
68 replies
12h1m

I am familiar with both German and Finnish bureaucracy.

German bureaucracy is (in)famous for paperwork and using faxes. Citizens/residents have no unique identifier (more and more weakened recently) and need to present documentation for everything. If you have no paper birth certificate you are not born...

Finland has had much higher digitalization for decades. You have a person number and authorities store everything centrally. A big brother nightmare for Germans.

20 years ago many processes in Finland went quickly, much more smoothly than in Germany. However, recently more and more authorities went into meltdown. It takes 3 or 6 months to renew a passport (or you queue in the street for many hours to get it done without an internet reservation). Certificates needed for inheritance processes delayed for many months each, so in the end heirs don't get access to their property until years later. If an elder person needs a legal guardian because they are unable to handle banking or similar anymore, you are more or less openly told: Does not make sense queuing, they will die first.

Where the degradation came from I have no idea. At least digitalization is not a guarantee that things work smoothly. In some areas (but probably none of those examples I mentioned) failed IT projects are the direct cause that processes break down.

anewhnaccount2
35 replies
11h6m

The degradation comes from waves of austerity politics by right wing governments. These services are expensive and require staff to keep things going. Austerity ideology dictates that there simply must be inefficiency in public services, and cuts are the cure to this disease since this will cause the public sector to "make do and mend" and end up running more efficiently, rather than having a knock on effect and decrease the quality of the services. This is the policy direction responsible for the fall in the quality of public services in the UK, and for some reason Finland decided this was an excellent idea and is following suit. The SDP patched things up a little bit, but not as fast as things can be torn down.

concordDance
8 replies
10h20m

I often see comments like this, but what's a good solution to the ever expanding cost of public services (to the point most of western europe now has gov spending at 40%+ of gdp)? You do need to cut back if you're starting to run a significant deficit or more and more of your budget will go on interest payments.

Any large org tends to get more inefficient with time as it accumulates inefficient components it can't get rid of, but unlike companies, government departments aren't going to go bust and close down.

I genuinely don't know a good answer here, but would be curious about other people's.

fransje26
5 replies
9h52m

(to the point most of western europe now has gov spending at 40%+ of gdp)

Perhaps that's fundamentally barking up the wrong tree. West-European governments in the post WW2 era have had higher relative spendings then that, without every financial expert and their dog declaiming that doomsday is near and services need to be cut.

We've been able to finance better healthcare before, we've able to finance better education before, we've been able to finance better infrastructure before, etc. So which costs have risen out of proportion to the point that none of that is possible today.

Aerroon
2 replies
7h29m

But maybe those experts should've been raising alarm over this? Western Europe is doing pretty poorly when it comes to economic growth. And prior to that Germany got a lot of help from the US, Spain did not do well, Italy was questionable, Portugal did not do well. Netherlands did well, but a lot of it is down to their location as a place for trade. That only leaves France and Belgium. Did they do well?

We've been able to finance better healthcare before

Modern healthcare is better than anything before. Even in its dysfunctional state it is better. Sure, you might have to wait longer to see a specialist, but the number of cases where the reply you get is "nothing we can do" is lower.

The things you mention are more expensive to provide today. One of the reasons is that our requirements for those services are much higher leading to much higher inherent costs.

intended
1 replies
6h28m

Based on what data ? I checked and I can't see these claims being supported. I could be wrong but and may have misunderstood something.

concordDance
0 replies
9h7m

So which costs have risen out of proportion to the point that none of that is possible today.

Basically all of them.

https://slatestarcodex.com/2017/02/09/considerations-on-cost...

Which I think is partially due to institutions becoming less efficient with time as more organizational scar tissue accumulates (certainly seen a lot of this at the companies I've worked for). Plus gov departments tend to accumulate extra low-return responsibilities from politician gimmicks (the mismatch between what sounds good in a headline and whats cost effective).

Which in turn I think comes from scope insensitivity, we just aren't good at understanding scale and underestimate defuse costs.

Rinzler89
0 replies
9h7m

>So which costs have risen out of proportion to the point that none of that is possible today.

It's not the costs that have rise sharply, it's the revenue and taxes that have declined since WW2 due to increased competition from globalization and the offshoring of jobs abroad, plus tax heavens aiding big corporation avoid paying taxes locally in western european countries, meaning governments today are missing out on a lot of income they used to get in the past, income which is now in places like China and in tax heavens.

Aerbil313
0 replies
9h0m

Any large org tends to get more inefficient with time as it accumulates inefficient components it can't get rid of

This is really the crux of it. Same incompetence and inefficiency, we see in tech industry. Are there any serious studies on the disease that comes with scale, and possibly its cure?

AdamN
0 replies
9h5m

High government spending doesn't mean the government is bigger necessarily. The big expenses are just getting moved right back out to the private sector for agricultural subsidies, energy subsidies, etc...

The better metric would be how many employees work (directly or indirectly) for the government and then compare those numbers.

somenameforme
7 replies
10h23m

I know basically nothing about Finland, and was curious about your comment as I find government spending an interesting topic. So the first thing I did was look up the government budget trends in Finland. [1] As an outsider it just seems that the Finnish budget is growing at an exponential pace? From 2010 to 2019 the budget went from ~50bn to 55bn per year, nearly managing to even create a balanced budget in 2018. From 2019 to to 2024 it seems to have grown to 90bn/year and is continuing to rapidly grow. There's certainly some expectation of an increased budget during COVID times, but it doesn't seem to be coming down, at all?

[1] - https://vm.fi/en/the-budget

usr1106
1 replies
7h31m

Finland has been a very poor country after WW II until the 1970s (compared to Sweden who had no war or Germany who lost the war). An economy best compared to Portugal or Greece.

The was a first overheating boom in the end of the 1980s, until a heavy recession took over in the 1990s. The next boom was Nokia driven in the 2000s until the global banking crisis. Since Nokia has fallen (well, it still exists but with a different business and more modest success) there has been little to no growth and heavy deindustrialization.

So basically Finland is back to the previous state of being a poor country with weak industry (I am exaggerating a bit). But the spending has continued to grow like the Nokia boom years had never ended.

Edit: Finland has one of the least favorite population pyramids in Europe. People getting older and no children. Very little immigration until maybe the last decade. And now a far right government with a strong anti-immigration agenda.

kilpikaarna
0 replies
1h48m

This is basically it, with the addition that Finland is no lomger in control of its own money. From the war up until adopting the Euro, Finland would devalue its currency a little over once a decade to keep commodity exports going.

The EMU is a mechanism effectively set up to extract wealth from the european periphery, for the benefit of Germany (and maybe to a lesser extent Framce). Finland is very much on the losing side, along with Greece, Portugal etc.

Perhaps with the difference that the culture is very protestant, with high trust in government. So rather than letting the situatiom deteriorate to what it was in southern Europe durkng the Euro crisis, the populace will flock to the stern faces speaking of deficits in the media, and dutifully vote them in.

jltsiren
1 replies
8h42m

The central government took full responsibility of funding healthcare, social services, and some other government functions in 2023. Before that, large part of the funding came from municipal governments.

Then there is the war in Ukraine. Normally, Russia is one of the most important trading partners of Finland. But when it doesn't know how to behave, a large part of foreign trade is missing, and the economy suffers.

usr1106
0 replies
7h12m

Normally, Russia is one of the most important trading partners of Finland.

Partially explains why there is no light in the tunnel of the state budget.

But it does not explain why many authorities are struggling with services for residents which worked better a decade ago. It is not so that authorities would have experienced severe cuts in budgets or headcount during the last 2 years.

thejohnconway
0 replies
9h30m

A combination of Covid, and the security situation with Ukraine and Russia perhaps.

ruszki
0 replies
9h50m

How much change is that in real value?

depr
0 replies
2h4m

As Weber observed, the free market requires a lot of bureaucracy.

constantcrying
4 replies
9h14m

If the German government did "austerity" they wouldn't need half my wage to spend on literal nonsense. Look at the budget over the last decades, as if there wasn't enough money...

ben_w
3 replies
5h36m

One person's Schwachsinn is another's Vernunft.

I've never actually looked at the German budget (quasi B1 deutschkenntnisse and no training in economics, what would I get from reading them?), what I can say is that it's very easy to fall into the trap described by Chesterton's fence and call for the removal of things because you don't understand them, not because they're actually bad.

For example, someone I used to know in the UK said much the same about his taxes paying for schools, just because he personally didn't have kids.

constantcrying
2 replies
4h35m

The data is published in English as well. https://www.destatis.de/EN/Home/_node.html

For example, someone I used to know in the UK said much the same about his taxes paying for schools, just because he personally didn't have kids.

This isn't what I said. If I pay half of my wages to the state I would expect them to manage to staff government offices. Maybe besides defense, basic administration has to be the most important function of the government, as nearly every other activity relies on it. There is zero doubt in my mind that there is something less important in the budget than performing the core functions of any government.

ben_w
1 replies
3h34m

The data is published in English as well. https://www.destatis.de/EN/Home/_node.html

Dankeschön.

If I'm reading this right (I may not be, see previous comment: I am not an economist), half of the revenue is spend on social security: https://www.destatis.de/EN/Themes/Government/Public-Finance/...

This is weirdly out of date, I don't know why the link was to a URL from 2013 whose content is about 2017, but it says for that year, 57% was social security: https://www.destatis.de/EN/Themes/Government/Public-Finance/...

This isn't what I said.

Indeed, it was an example of the category alone, and not even intended to imply you have that specific detailed opinion.

Thing is, the stuff I linked to are all vague large-scale groupings, and I can't dig into any of them and say "Max Mustermann from the… *rolls dice* cultural affairs department, is spending too much on… *rolls dice* trying to promote Sendung mit der Maus to… *rolls dice* the Swiss" — and even if I could dig in at that level, I wouldn't be able to comprehend the value, only the cost.

(Würde jemand sagen, "von allem den Preis, von nichts den Wert", oder ist das nur die Uberzetsung des Oscar Wild Zitat?)

Propelloni
0 replies
2h50m

Das ist eine Übersetzung des Oscar Wilde Zitats.

lifestyleguru
3 replies
10h39m

Austerity ideology dictates that there simply must be inefficiency in public services, and cuts are the cure to this disease since this will cause the public sector to "make do and mend"

There is some weird notion in populace that if we cut the funding, the public services will "get handle of themselves" and become more cost efficient. That's what a reasonable individual would do in tougher times. What happens in reality is that the nepotist core in public services will entrench and be fine or even better off, while the society will be told to suck it up.

sotillan
1 replies
9h49m

Whereas if funding is increased, that same nepotist core will suddenly discover their spirit of public service and ensure the money is spent on better delivery, instead of further enriching themselves?

Honestly, the whole funding debate for public services is often so facile and ideologically entrenched. Both sides are right: Public services _are_ invariably inefficient, and cutting funding _does_ invariably do little to increase efficiency. But neither side will accept the validity of the other's argument and so we end up with this cycle of alternating governments imposing austerity and generosity.

denton-scratch
0 replies
7h51m

Public services _are_ invariably inefficient

The NHS used to be very efficient, when it was managed largely by clinical staff. Now it has as many professional managers as clinical staff, and they all have to be paid...

Also an awful lot of the NHS fuctionality is now farmed-out to private healthcare companies, who need their rake-off.

As far as "professional managers" is concerned, these guys are mostly NHS managers, not the kind of managers that could easily transfer into a private company. Their expertise is in some obscure corner of the NHS.

shoubidouwah
0 replies
10h21m

"Austerity is dropout"

fransje26
1 replies
10h3m

Austerity ideology dictates that there simply must be inefficiency in public services, and cuts are the cure to this disease

Over time I developed a more cynical theory. As politicians have extremely short-term understandings and targets, they abuse the latent momentum of public services to surf on the inherent delayed response before service quality goes down and gets noticed. By then, they can blame the cause on something else, and move on to the next cost-cutting measure.

Even if there is an outcry, they can gaslight citizens into believing either that a) it was not better before or b) the changes are an imperious necessity that cannot be reversed.

Either way, the personnel and knowledge has been lost, so the service (and the quality-of-life that came with it) are lost forever.

araes
0 replies
57m

Excellent description, and further additions for the cynicism.

(opinion) Human society large rewards narcissism. Diligence is usually rewarded with exploitation. There's actually academic supporting the 2nd. Therefore, most politicians are largely selfish and mostly interested in being on TV, being the center of attention, and holding sway over other citizens. (Not all, just the majority). The only metric is "what gets elected." However, like "green" anything, the optimization is usually "do nothing, and color the corporate logo green."

Causes further issues. The optimization becomes, "focus on highly incendiary minutia, while avoiding anything risky, and maximizing viewer attention and anxiety." Issues that will allow them to say they're valiant, while exposing nothing especially damaging for the next election.

The American fiscal funding fiasco this / last year is typical. 6 months, and America finally has a budget. All the while, it's mostly arguments about minutia like "Homeland Security impeachment", who the speaker is, where Military can get abortions, whether a base will get funding, migrants on buses, and weekly CR shutdown "thwarting". It literally became weekly federal budgets around Feb-Mar in America... Meanwhile, a lot of enlisted in those abortion / base (yes/no?) states are wondering whether they're going to get paychecks. People on boats complain about having no ammunition to shoot with...

London's sewers are another excellent example. Dithering and dithering about repairs, about maintenance, about public toilets. Except the Thames is bright yellow, people won't go swimming, and when somebody asks, they're response is "well, btw, we're actually £18,000,000,000 in debt. Make -£2,000,000,000 per year. Have for years. Nobody even noticed. lolz." https://en.wikipedia.org/wiki/Thames_Water Obvious optimization, nationalize while decrying the evils of the private sector. Quietly also nationalize the debt to the public in a line item somewhere that nobody writes about. Squander resources for years. Sell back to industry claiming the salvation of capitalism.

JetSetWilly
1 replies
9h50m

Renewing your passport is quick and relatively painless in the UK. Founding a company is also reasonably easy. This reads like you have some chip on your shoulder about "austerity" and are needlessly bringing it up here.

alibarber
0 replies
9h39m

It is strange because as a Brit living in Finland there are a for sure a lot of things better in Finland when it comes to public services but renewing ID documents and setting up companies absolutely aren’t.

usr1106
0 replies
6h49m

The degradation comes from waves of austerity politics by right wing governments.

There was a right wing government in Finland before 2019 and there is a more far-right wing government since last year.

I don't like either of them for their politics, but I cannot see how they could be blamed for authorities getting increasingly dysfunctional. They have not done anything like fired 50% or even 20% of the employees.

southernplaces7
0 replies
3h9m

The degradation comes from waves of austerity politics by right wing governments.

This is nonsense. Your statement is flatly an ideological talking point in no way backed by actual practical evidence or a reasoned argument of the situation. Government budgets in most european states, (Finland included) have continuously gone up for decades and increase in complexity. A strong ideological focus on claiming "right-wing austerity" has been a common narrative despite nothing about these growing budgets matching that at all. The very idea presupposes that any current amount of spending, no matter how large, has no business being criticized at all and that it's "extreme" to argue that the state could afford to be more agile in doing better with slightly less % of GDP.

Aside from the fact that government budgets are at record levels of economic output anyhow, no, the state shouldn't just automatically have a right to these absurd budgets with any pushback being called "austerity". or "right-wing".

pc86
0 replies
3h10m

Not every government less cavalier with other people's money is "right wing," not every "right wing" government believes in austerity, and not every implementation of austerity means just haphazardly cutting services to the bone and letting the proles figure it out on their own. So I think it's a bit intellectually lazy to say "oh the government doesn't work because those crazy right wingers intentionally broker it!"

dash2
0 replies
3h20m

So the US is usually thought of as more right wing than Europe, so is bureaucracy worse in the US than Europe?

alibarber
0 replies
10h31m

'Services' are things like education, trains, hospitals.

I don't want my taxes to pay for a desk that I have to go to to show my passport to someone so they can make me an ID card with the same information as the card that the man-with-the-gun-at-the-airport thought was OK enough to let me in to the country with, but the bank won't accept as strong enough proof of ID. Bureaucracy is not a service.

treprinum
9 replies
9h8m

I suspect the degradation came from Eastern Europe, what you wrote is what I was told EE looked like in the 80-90s.

GrumpySloth
7 replies
8h59m

What do you mean by that? Did Finland change location over time?

Also, two Eastern European countries that I have first-hand knowledge of: Poland and Estonia are much more digitised and efficient at those things than Germany (and, from what GP wrote, it seems Finland as well?).

askonomm
5 replies
5h11m

I don't know why does everyone on HN think that Estonia is Eastern Europe when it is actually Northern Europe (https://simple.wikipedia.org/wiki/Eastern_Europe). All of the Baltic countries are Northern.

treprinum
3 replies
5h3m

It's the same as Czechia, Poland, Slovakia and Hungary being Eastern European when they are Central European. Soviet legacy, west vs east.

GrumpySloth
2 replies
4h8m

The popularisation of the concept of Central Europe stems from some people being ashamed of being from Eastern Europe and feeling inferior to Western Europe. Eastern Europe is defined by the Iron Curtain whose effects are still visible today, while Central Europe is a category created purely by selecting a region on the map without regard for political or cultural factors, just to push Eastern Europe further East and exclude some countries from it. It’s fairly arbitrary. I don’t see Eastern Europe as inferior and am not ashamed of being from a part of it, so I see no point in using an arbitrary term like Central Europe.

dash2
1 replies
3h16m

Mitteleuropa is an old concept, much older than the Iron Curtain. For example, the old boundaries of the Austro-Hungarian empire catch quite a lot of it. I've been told that places like Slovenia are pretty different from places like Serbia, and similarly for western vs. eastern Ukraine.

GrumpySloth
0 replies
3h1m

In the case of Poland though only a tiny fraction of it was captured by the Austro-Hungarian Empire. The largest portion was captured by Russia. Second largest by German Empire. I have great-grandparents from each of those.

Moreover prior to the fall of the Iron Curtain the term Central Europe wasn’t used much. After that though some people like Milan Kundera started popularising it much more out of sense of inferiority.

GrumpySloth
0 replies
4h14m

A subset of Northern Europe is in Eastern Europe. They’re not disjoint. In particular all Baltic countries are in Eastern Europe (as is visible on the map in the article you linked to (CIA World Factbook)) Eastern Europe has been historically defined by the Iron Curtain. Other definitions are fairly arbitrarily just trying to put a line somewhere on the map without regard for history and its effects on culture and politics.

treprinum
0 replies
7h17m

The same processes that led to Eastern Europe in 80-90s ending up as a nightmare where everything took ages to be handled happened to Finland with the same outcome. Bad algorithms basically. Maybe PL/EST still remember how bad it was back then and make sure they are running better algorithms, whereas Finland has no clue how bad it can get due to a lack of experience?

ktosobcy
0 replies
5h41m

And I thought racism wasn't a thing on HN...

beAbU
5 replies
10h15m

For all it's many many faults, I have to say I'm sometimes surprised by how efficient some South African bureaucratic state organs function. To get a renewed passport is a 5 minute online form, electronic payment, and then a 30 minute appointment at a local bank branch to get biometrics taken. Then about 1-2 weeks later you can go and pick up your new passport.

Driving license not much different.

For most people, paying taxes is a non-event, and tax returns happens automatically in most cases.

Then the bad: - Firearm licenses: more like months if not years in some cases. - Birth and marriage certificates: 4-6 months - Permission for building/construction/alterations: Don't even waste your time. - Healthcare: get private insurance if you value your life. - Public transport: lol

It's interesting how in sufficiently large and complex bureaucratic systems (Governments, Microsoft, etc), you get little pockets of excellence because somewhere in the mess of it all, there is someone who cares about their job, and they put the effort in to make it better for their users/customers.

In South Africa's case, these pockets of excellence are often and frequently replaced, because they are being measured by different metrics than what we as citizens care about, and deemed lacking: Party first, enable corruption, etc. So then you have these government institutions that every 10-15 years or so get renewed, and then coast on that renewal while it gradually goes to shit, before someone steps in and fixes it all up, before them being fired again for not allowing the right amount of corruption to take place. Vicious cycle.

miningape
2 replies
9h24m

This is interesting because I have the exact opposite experience. I'm a South African but I live in the EU, for me, I need to book my new passport 1 year+ in advance of it expiring because it takes on average about that long (if I pay the bribes).

jmopp
0 replies
7h27m

The trick is not to do it at the embassy, but to take a two-week holiday and do it in South Africa.

beAbU
0 replies
6h44m

I was thinking about exactly this was I was writing my original post.

I'm currently also an expat living in the EU. The common sentiment from a lot of other South Africans here is to go back to SA for a 2 week holiday to get your passport. Apparently dealing with anything home-affairs related via your local embassy is a total shitshow. People have been waiting years for birth certificates for new babies and such.

It seems that the intersection between Home Affairs and International Relations (embassies) is in total shambles.

secondcoming
1 replies
3h24m

I didn’t have to leave my bedroom to renew my Irish passport!

fullspectrumdev
0 replies
42m

Our passport office is phenomenal. Too bad about everything else!

lifestyleguru
4 replies
11h33m

IT in general is stuck in blind valley and doesn't make anything easier anymore with its aggressive outsourcing and profit extraction. The only systems which go quickly and efficiently are those against the interests of an average citizen - e.g. the covid certification apps determining and limiting basic citizen rights. Oftentimes I prefer to show up in person with ID and fetch a printout with confirmation, than to install their bloated sloppy apps tracking the shit out of me.

Beijinger
2 replies
9h19m

Biggest problem: Germans don't understand digitization.

They often try to recreate the paper process with IT, instead of making a complete new setup.

Example:

Previously, you had to go to the City Hall or whatever in your pace of birth to get a birth certificate.

Now you can email them, pay, and they mail you the certificate via snail mail.

How it should be: Use an online token, log into your account, request a birth certificate and just print it. It should have a URL that can be used to verify that it is valid. This would be faster and the risk of forgery would be much lower. A seal - and Germans love seals, they wank of to seals - can be forged much easier.

tonis2
1 replies
6h40m

Yeah, I worked in a German startup for 2 years, managers were running it like we were manufacutring cars.

Lots of decision's, made no sense in software development.

rs999gti
0 replies
38m

Lots of decision's, made no sense in software development.

But we must have process and governance in place. Let us set a meeting to discuss.

screye
0 replies
13m

Aggressive outsourcing is hilariously out of touch.

Western consultancies win contracts to build IT systems. The project is outsourced to India for low cost. Indian outsourcing team hires the cheapest talent possible. Cheap talent provides cheap quality. Website is bloated and slow. Some person on the internet uses these systems, hates it and develops a strong negative bias for all Indian (replace with any 3rd world country) talent.

On the other hand, Indian Govt hires the competent Indians at fair prices. (These aren't even our best or that well paid). It treats them with (moderate) respect and allows them to own their projects. Indian Govt. websites turn out to be seamless, performant and handle 10x the scale of western IT systems. This is a recent phenomenon, but India's digitization of railways, covid management, aadhar, social welfare and UPI has been best in class.

Reminds me of when westerners visit India, eat at the most suspicious looking street food place, and inevitably get sick. You never want your street food (programmers) to be cheaper than the bar set by local middle class (or their taxes). Yeah, outsourcing will save money. But, have some standards.

You get what you pay for.

rand846633
3 replies
11h35m

Anyone know more about this? Find this really interesting and surprising!

alibarber
2 replies
10h25m

As someone who was advised to wait 6-12 months for a tax refund in Finland (not a standard payroll/prepaid tax) [1] I'd say it's because 'the system' is still the old system from the past that hasn't entirely kept up with the fact that in this day and age:

- A limited company is not always a giant manufacturing concern

- An ever increasing amount of the population will not have been born in and will not be living their whole lives in Finland.

IT is a nice frontend for it and can serve you in many languages and with the latest and greatest UX - but the actual processes and decisions are not keeping pace. Changing these is a high-friction, low-reward endeavour for politicians.

[1] https://www.vero.fi/en/About-us/contact-us/processing-times-...

anewhnaccount2
1 replies
7h31m

I thought those delays were meant to encourage you to declare everything in advance on your tax card.

alibarber
0 replies
6h0m

I am talking about transfer tax on property which is completely different.

In my opinion, the tax card system effectively just moves the deadline for the tax return to Nov/December so you can ensure it's completely up to date then and not pay anything extra.

mharig
3 replies
7h8m

You have a person number and authorities store everything centrally. A big brother nightmare for Germans.

Should be a big brother nightmare for all humans.

Your number is 666.

iacvlvs
1 replies
6h30m

Why?

There’s always a lot of hand-wringing and FUD around giving people ID numbers, but never a coherent rational argument. What makes it a big brother nightmare for all humans?

ben_w
0 replies
5h49m

Like all automation, having a database of your population greatly increases your efficiency, without regard to whether this power is used to do good or to do evil.

There are many still alive who remember the evils done by the Stasi, when I was a child, there were many who remembered the evils done by the Gestapo; when those are your core examples of a citizen database, such thing naturally seems "big brother".

The irony is the mirror image: America seems almost* totally willing to have private databases while disliking government ones, Europe seems almost* totally willing to have government databases while disliking private ones.

* to anyone about to reply "not I": don't be blind to the "almost", I know many here will be exceptions

dntrkv
0 replies
3h59m

So having a health database, drivers license database, social security, banking etc are all ok but creating a proper national ID system would somehow push it over the edge to where an authoritarian government can come about and take control of our lives?

Your argument boils down to “let’s purposely make our government inefficient because it might one day turn on us”

Which, judging from other countries, is actually the opposite of what happens.

The worst offenders of human rights and government overreach are the ones that don’t have their shit together.

ricardobayes
0 replies
8h1m

For what it's worth, while it does not often come up in a positive light on this forum (and others), Hungary has almost all processes digitalized. Passport renewal is an exception, but after a quick in-person appointment, you get your passport shipped to you in less than a week (usually), even to a foreign country. You have your taxes prepared for you automatically, you just need to click a button to accept the draft. That said social services is pretty bad, especially for elderly care, but to no fault of IT services. They even have a free, state-provided VPN if you want to watch TV programmes back home, from abroad.

patall
0 replies
7h20m

Same experience in Sweden. It took me 1.5 years to get to full European healthcare (i.e European Health Insurance Card). Only to learn that moving within the country, they basically lose all your health records. Seems digitalization is not quite implemented for any non-totally-daily processes and as soon as a single human is needed in the line, there are not enough people.

amanda99
0 replies
20m

It sounds like these are just issues with processes taking a long time. In other words, that there are long queues. Of course that is a problem too, but it sounds like there's less "active time" and it's more streamlined, if still with long wait times?

whalesalad
57 replies
21h23m

What are the redeeming qualities of Germany?

fleshmonad
26 replies
21h13m

Note that I am a German. I would say there are few. Bad education, especially in schools, a broken railway and public transport system, as well as incredibly high taxes. You may say "free healthcare" and a point can be made here, but when you take a look at the high taxes you have to pay, it's not worth it, if your income is above average. All in all it's a mess and I haven't even begun speaking about German people and their mentality, as well as poverty and unsuccessful immigration.

croes
11 replies
17h8m

Incredibly high taxes? Denmark has higher taxes.

And don't forget Germany has one of the lowest annual working hours in the world

https://data.oecd.org/emp/hours-worked.htm

croes
6 replies
10h43m

Never trust a conservative think tank on taxes.

https://en.wikipedia.org/wiki/Tax_Foundation

Payroll taxes are typically flat-rate taxes levied on wages and are in addition to the taxes on income. In most OECD countries, both the employer and the employee pay payroll taxes. These taxes usually fund specific social programs, such as unemployment insurance, health insurance, and old age insurance.

Social security and pesnions aren't financed by taxes, in Germany taxes are not earmarked for a specific purpose.

If you would replace social security and pension contributions by private insurances with the same costs people wouldn't have more money available but the Germany's index position would be better.

You could even double the costs and the index would claim an advantage for workers even though they would have less money.

vereinbar
2 replies
5h27m

The Tax Foundation simply presents the data collected by the OECD[1]. You don't have to trust them.

Social security and pesnions aren't financed by taxes, in Germany taxes are not earmarked for a specific purpose.

This is wrong. Because the pension contributions are not enough to cover the payments, every year billions from the tax revenue is used to pay the pensions. The German pension system is effectively bankrolled every year with the tax money.

If you would replace social security and pension contributions by private insurances with the same costs people wouldn't have more money available but the Germany's index position would be better.

This is also wrong. The other countries have social security (For example: Australia). Unlike Germany, they don't charge for public pension separately. The contributions are included in the income tax. So it makes perfect sense to include it in the total tax burden for Germany.

[1]-https://www.oecd.org/tax/tax-policy/taxing-wages-germany.pdf

croes
1 replies
5h1m

Because the pension contributions are not enough to cover the payments, every year billions from the tax revenue is used to pay the pensions.

Because the pension contributions are used for non-insurance benefits that should actually be paid for by all taxpayers, such as the mothers' pension or the equalization of pensions for retirees in East and West Germany.

BTW "every year billions from the tax revenue is used to pay the pensions" proves social security and pension contributions aren't taxes. Tax money is a subsidy not the main source.

This is also wrong.

That part is totally missing my point. It's about the ranking. Without public social security the ranking would be better but worse for the workers and just because it's a tax in Autralia you can't simply count it as a tax in Germany.

If you want to compare you need the total costs of living not the tax burden. Tax burden is just leverage to help companies and harm workers.

Replace taxes by fees and the tax foundation is happy, the people not so much.

vereinbar
0 replies
4h20m

If you want to compare you need the total costs of living not the tax burden. >Incredibly high taxes? Denmark has higher taxes.

Why would you compare total cost of living to find which country has the higher taxes? It doesn't make sense. Besides, you claimed Denmark had higher taxes. It has been proven that it was wrong.

Tax burden is just leverage to help companies and harm workers.

I would like to hear how you reached this conclusion.

just because it's a tax in Autralia you can't simply count it as a tax in Germany.

Yes you can, if your goal is to make a fair comparison between countries. The OECD uses it for measuring the tax burden on income. Especially because, the countries like Germany use 'creative labelling' to hide how much money they collect each year.

Because the pension contributions are used for non-insurance benefits that should actually be paid for by all taxpayers, such as the mothers' pension or the equalization of pensions for retirees in East and West Germany. BTW "every year billions from the tax revenue is used to pay the pensions" proves social security and pension contributions aren't taxes. Tax money is a subsidy not the main source.

You've just proven my point. Because the money can be easily shuffled around, in practice, it is no different than income tax.

RamblingCTO
2 replies
7h26m

Sooo is statisa [1] also a conservative think tank? I don't see anything wrong with the quote you provided.

Social security and pesnions aren't financed by taxes, in Germany taxes are not earmarked for a specific purpose.

Not sure I can follow. Of course the pensions and social security are quite substantially tax funded [2].

[1] https://de.statista.com/infografik/13660/oecd-vergleich-steu... [2] https://www.ihre-vorsorge.de/rente/nachrichten/haushalt-fuer...

croes
1 replies
4h56m

They used the pension money for other things so it's logical to pay it back. And just because tax money is used for pensions doesn't mean the socuial security and pension contributions are tax burden.

Like I said, if all social security was through private insurance the tax burden would be lower but the people wouldn't have more money.

Health insurance proved otherwise. As long as you are healthy you pay less but as soon you get sick more often it gets way more expensive.

But the later wouldn't be recognized as tax burden.

Tax burden itself is a useless measure, the total cost of living is better.

vereinbar
0 replies
4h9m

Like I said, if all social security was through private insurance the tax burden would be lower but the people wouldn't have more money.

It won't be that lower. The German pension has existing liabilities that they must pay. Since it is backed by the state, it will inevitably be paid by the taxes.

Even if the pension payments were abolished, just to pay existing entitlements, the taxes would be increased proportionally. The public pension can be considered a plus in a young country with a healthy demographics. In a geriatric state such as Germany, it is a big burden.

n_ary
1 replies
11h47m

And don't forget Germany has one of the lowest annual working hours in the world

Of course if you are a civil servant or part of some mega union, but for the rest of the private plebs it is often 9h daily(because lunch break is not part of contract) and most do a long commute(because of eternal housing crisis) which may raise it to 12-14h easily.

croes
0 replies
10h42m

Same is valid in other countries. Germany isn't the capital of worker exploitation.

mimotomo2009
0 replies
9h16m

Mmmhh... I don't think the OECD data is not working comparing countries:

"The data are published with the following health warning: The data are intended for comparisons of trends over time; they are unsuitable for comparisons of the level of average annual hours of work for a given year, because of differences in their sources and method of calculation."

Yes, in Germany are many part-time workers but overall mostly they are not working 6 hours the day . Normal is - afaik - 8 hours per day on approx. 220 days in a year.

Keyframe
11 replies
20h39m

(rants)

yep, you are German alright!

MrJohz
7 replies
19h12m

Truly the worst thing about living in Germany is the apparent national hobby of complaining about things that perhaps aren't great, but really aren't as bad as you might think.

In practice, German schools are pretty decent, but they obsess about PISA scores and so neglect to ever notice what the schools are doing well. The train networks are fairly extensive, can be quite cheap depending on how you travel, and consistent across the country, but a lot of Germans would much rather complain about how late they are than recognise anything positive about the system. The general public transport networks (i.e. transport inside towns and cities) are amazing, and one of the things that I would most miss if I went anywhere else.

I think part of it is just that if you're German, you rarely see these systems from an outside perspective, so you only see the points that chafe regularly. But another part of it really is just that German tendency to criticise first rather than to view things holistically.

RamblingCTO
4 replies
11h54m

I disagree heavily. Just because you have trains going everywhere (that's not a Germany-specific thing) doesn't mean they are allowed to be hours late. The transport system is broken, was destroyed by trying to cut costs in the past.

Same with schools and educators. And don't get me started on healthcare.

Your sentiment is part of the problem to be honest: Germans are always complaining, it's fine as it is bla bla. It is if you compare yourself to third world countries. But we compete with Japan, Switzerland, the nordics and so on. Also note that this is not a sentiment that is only found in Germans but also a lot of (high value) immigrants who move on after touching base. Germany has a lot of potential but utilizes that very little.

Why would I recognize anything positive about the transport system that has a high likelihood of making my trip a nightmare? It's literally the most important thing, to get me from a to b. That doesn't work with massive delays, cancellations, reschedulings and I miss my connections.

earthnail
1 replies
11h25m

For what it’s worth, I’m German and live in Sweden and the train network is significantly worse than in Germany.

There are serious structural deficiencies at Deutsche Bahn, absolutely. But the gras is also always greener elsewhere. The nordics don’t have a better train network.

It’s bad enough in Sweden that a Chinese company has started offering the MTRX, basically the ICE equivalent between the two largest cities (although much slower, more like an IC) and that’s the best connection you can get. Imagine the outcry if that was the case in Germany for Munich-Berlin…

RamblingCTO
0 replies
7h31m

So I've heard. I once did a train trip vom Braunschweig to Narvik. Braunschweig to Hamburg was typical: the waggon I had a reservation in was not provided. So the train was not only late but overfilled. The danish train again from Hamburg to Kopenhagen was perfect.

The polar express from Stockholm to Narvik was awesome. On the trip down we had problems with construction and ice, so we were stranded in Abisko. We were taken with buses to a hotel, got food and even got a refund + 700skr deduction for our next trip. No questions asked. The experience was the opposite of the one you get in Germany. No bureaucracy. We got the SMS after Riksgränsen!

The next day I couldn't make my original train from Stockholm to Kopenhagen, so the train conductor just got me a new ticket for free. No questions asked. No bureaucracy.

Clear communication, situation well handled, all good. So at least this part blew my mind! Also the ticket control by just checking seats. Awesome.

MrJohz
1 replies
10h21m

I'm comparing this mostly to the UK, which is not a third world country. And to be clear, I agree that DB have been absolutely awful with delays and a lack of proper track maintenance.

But to present that as a full picture of the German transport system is to be completely myopic, and that's the issue. Yes, improvement is possible and necessary, but it's also nice to celebrate the successes of your country, and having a single system that covers pretty much all of the country, that integrates regional and intercity travel, that has a transparent and reasonably cost-effective pricing structure, that includes deals like the Länder-Tickets and the 49€ ticket, that is clean, and many other things besides feels like a success to me.

Do there need to be changes and improvements? Yes, of course! But this sort of self-flagellation ("oh woe is us, our transport system isn't perfect") is really tiring.

RamblingCTO
0 replies
7h36m

I'm comparing this mostly to the UK, which is not a third world country.

I'm not so sure at this point. Comparing ourselves to the UK would be sad tbh.

Yes the 49€ ticket is a nice achievement. But again, it's not about having a perfect transport system. It's having one that is representative to our position in the world, our wealth etc. Buses are something of a gamble. Trains are notoriously unreliable. The same goes for a lot of regional/local providers. That's basic. Things like nice seatings, luxuries, food etc. would make it perfect. But you need to cover the basics first.

sien
0 replies
18h59m

I went on exchange to Germany.

Somehow there should be a ranking of the foreign language abilities of countries. There Germany would do incredibly well.

It's strange that people obsess over math school rankings, but how many people do calculus beyond their schooling where as many, many people use a foreign language often in their work.

It's a non-BS thing people can learn at school and something that Northern Europeans do spectacularly well at.

jonathanstrange
0 replies
9h41m

German whining is one of the reasons why I'm glad I've left Germany, but now I've just realized that this is exactly what whiny German abroad would say.

barbazoo
2 replies
18h15m

In certain parts of Germany the German equivalent of "You really can't complain" is the highest form of praise.

croes
1 replies
17h5m

The sentence "You really can't complain" is a complain itself.

dkga
0 replies
14h4m

Yes, never noted that!

lrem
1 replies
20h59m

Looks like you really want to move to Switzerland :D

fransje26
0 replies
9h27m

To then start complaining about the costs of living..?

chironjit
10 replies
20h51m

The best I'd say is a sense of collectiveness that is somewhat higher than other countries.

It's not nationalism. Rather, there is some amount of willingness to give up personal comfort for some sort of general/societal greater good.

This is really something I've noticed compared to say the UK, Australia, certain asian countries, etc.

Not sure why it hasn't translated to improving bureaucracy.

tazjin
3 replies
20h8m

The best I'd say is a sense of collectiveness that is somewhat higher than other countries.

I wouldn't say that this comes anywhere close to many other countries in Germany. Societal coherence in e.g. Russia or Norway is much higher than in Germany.

I think it's rather the other way around: The countries you're comparing to might be exceptionally bad at it, and Germany is average.

racked
1 replies
13h51m

Can you elaborate on societal coherence in Russia? This in particular piques my interest; what I hear from Russia is that it's a place where any interpersonal conflict is resolved with (verbal) violence.

kome
0 replies
13h32m

interpersonal conflict has nothing to do with societal coherence tho... unless it's a social conflict. and let's say that social conflicts in russia doesn't happen anymore unfortunately. they used to be good at it.

orthoxerox
0 replies
11h13m

Societal coherence in e.g. Russia or Norway

Russia (with the exception of its ethnic minorities) is one of the most atomized societies in Europe, actually. The Russian dream is a house in the exurbs with a three-meter-tall impenetrable fence around the lot where you can do anything you want inside and no one will bother you.

fleshmonad
2 replies
20h45m

Can you provide some examples of what germans bind together for the "greater good"? I seem to have missed it.

ulfw
0 replies
16h35m

Following and make the most pedantic rules. Germans loooooove setting rules and expect everyone to follow or else they rat you or or sue you even. (see neighbour conflicts about hedges growing too far etc)

Archelaos
0 replies
16h40m

Almost one million volunteer firefighters (Freiwillige Feuerwehr). These are 96.95 % of all firefighters. (For comparison: the UK quota is 2.31%.)[1] Very popular to participate especially in many rural parts of Germany.

[1] Source: https://de.wikipedia.org/wiki/Freiwillige_Feuerwehr#Deutschl... (in German)

data_maan
2 replies
11h27m

Collectiveness?

I can't wait for the new Nigerian immigrant to swing his beer at Octoberfest arm in arm with the second generation Turk from Munich, all while the waitress, a temporary worker from the Czech Republic, rushes on.

It's not going to happen. Social cohesion is very low, and Germany failed to foster a sense of shared values among immigrants.

fransje26
1 replies
9h25m

I can't wait for the new Nigerian immigrant to swing his beer at Octoberfest arm in arm with the second generation Turk from Munich, all while the waitress, a temporary worker from the Czech Republic, rushes on.

Wait, isn't that what's happening already? I'm pretty sure the temporary worker from the Czech Republic is there, as is the second generation Turk voting for Erdogan. Not fully sure about the Nigerian immigrant though.

data_maan
0 replies
1h59m

Indeed everyone is there. Except that no one is arms in arms with anyone - that was the point I wanted to make. The immigrants mostly live segregated along with their peers, and you rarely have the "melting pot", especially not at the lower socio-economic scale, from what I can see.

And that is not good for fostering a collective spirit. The order-abiding nature of Germans collides with the people from country that are more used to bend the rules, so everyone is stressed and unhappy.

I guess it's what you call immigration made in Germany.

Loveaway
5 replies
18h49m

Orderly, rational people. Hard working, rich country, despite no natural wealth. No cutting corners, one of the reasons bureaucracy is so horrid. You are expected to have your shit together, still people are as lenient as they can be. Things work, you can trust people. Low crime, clean streets. Good sense of morality. Country is capable of much more, still holds itself back a lot, preference in humbleness. Things are built on solid foundations. Not a bad place to be.

blueflow
2 replies
10h10m

clean streets

Living here, i disagree. Just on my way to the train station i saw at least 10 cigarette butts on the ground. And its like that across the whole city.

fransje26
0 replies
9h33m

I just had some friends visit on the way to their home country, after spending 4 months traveling through Spain.

They liked Spain a lot, but the first comment they made when we went for a walk was how clean the streets and the surroundings where.

Your cleanliness mileage may vary per Land, I guess.

epaga
0 replies
3h43m

Not sure if you're being sarcastic or not - but in case you're not - seeing "10 cigarette butts" - instead of, say, piles of trash, dung, old broken down cars, and/or drug paraphernalia - seems pretty clean to me, as cities come.

slowmotiony
0 replies
7h3m

clean streets

There's junkies fighting for crack in their underwear in minus degree weather right in the center of Frankfurt, shit and needles everywhere all around hauptbahnhof, come on.

Rinzler89
0 replies
8h36m

>rational people

Hardly. A lot of people buy into FUD without questioning it. A lot of people never question their government or rules no matter how stupid they are.

They'll just tell you to follow the rules even if you explain to them in a 100 page essay why those rules make no sense and are even detrimental.

They never acknowledge the possibility that their government/bureaucratic systems in palce can be faulty. If it doesn't work for you, then it must be your fault, not the system's fault.

It's the kind of blind trust in the system that lead to the Wirecard scandal happening under the watch of the entire world.

Rational people constantly question things, not trust and follow them blindly.

Tainnor
4 replies
12h55m

A country that is incredibly rich in historical significance (both good and bad), cultural traditions, art (historical and modern), regional variety and nature. Cities are walkable, public transport is mostly decent (it's perfectly fine to live without a car if you're in the city), crime is low, poverty is low, the economy has been tanking a bit recently, but has traditionally been doing well.

In terms of mentality, Bavarians are very different from Rhinelanders who are very different from East Germans. Berlin is a bubble in and of itself and can't really be compared to the rest. In general, Germans tend to take comfort in clear rules and structure, and are used to a certain kind of cutting through bullshit, both of which may be a good or a bad thing. I'll also add that, to my knowledge, no other country has reflected its own role in history as deeply and critically as Germany has, which to me comes as a bonus even when there is a tendency to overcorrect.

Food is IMHO not great (except Käsespatzle), but beer is some of the best in the world.

danielbln
2 replies
10h20m

Don't forget bread. Whenever I travel to the US I'm appalled by what is considered good bread there. Not throwing shade here, it's just what it is. On the flipside, buying Avocados here in Germany is akin to a crime against humanity.

chrisandchris
0 replies
2h10m

Then travel to Switzerland and IMHO German bread is just average anymore.

Tainnor
0 replies
5h21m

One of my pet peeves is how Germans have amazing bread, but then put the blandest possible stuff (like very tasteless Cheese, and one leaf of salad) on top of it, while Italians have great stuff to put on bread but the bread itself is so boring.

shiroiushi
0 replies
8h34m

Germany has some great burger restaurants. Cafes are pretty good too.

karma_pharmer
2 replies
20h23m

The hacker subculture there is incredible; closest thing to late-1990s bay area (before the flood of money killed everything) that's still alive today.

But yeah, there are a lot of negatives counterbalancing that.

CalRobert
1 replies
10h55m

Is Chaos Communication Congress worth a visit for an American who speaks crappy German?

com
0 replies
9h51m

Yes. Live translation services are provided for the minority of formal stuff that’s done in German. Drinking beer in the alternative track, everybody understands each other after a couple of drinks even if they didn’t before.

nicbou
1 replies
16h24m

Mild summers, good work-life balance, the European Union, decent healthcare, ease of travel, nature.

Even though I'm currently in a "it's complicated" relationship with Germany, I moved here by choice because I loved the place. These things are still there, but since I'm working so close to Germany's problems, I let it get to me sometimes.

data_maan
0 replies
11h27m

Doesn't that apply to many other countries as well?

jjgreen
1 replies
20h5m

The sausage

trashburger
0 replies
17h47m

Not really, it's just the wurst.

mensetmanusman
0 replies
20h1m

The most beautiful cities at night, especially Dresden. You never need to own a car, amazing beer, awesome Turkish food, awesome dance clubs in old castles or rundown industrial parks; also life is 10 times better if you're a student :)

(I lived in Germany for about a year as an American college exchange student)

freyfogle
43 replies
22h6m

Really I think this is overdone. I fully appreciate Berlin is disfunctional, but in other regions (I live in Thüringen) things go quite quickly.

nicbou
42 replies
22h0m

I don't think that it is overdone. It's bad everywhere, and it's much worse in Berlin.

If you've experienced anything like a modern bureaucracy, Germany is infuriatingly backwards. The article is painfully accurate down to the minute detail.

freyfogle
29 replies
21h45m

I have lived/worked/banked in four countries (UK, US, ES, DE).

Germany is not at the cutting edge, but it is far from the worse. The interactions I have had with bureaucratic systems in Thüringen have all been entirely fine. Friendly people, clear process, done quickly. Obviously that is only an n=1. It is a rural area that is not overloaded as Berlin is.

Which country would you consider "modern"? My experiences:

In the UK the way you prove who you are is literally a physical copy of your water bill.

Spain, some things work well enough, others are insane.

US, massive variability from state to state and government department.

nicbou
16 replies
21h26m

My biggest gripes, summed up:

- The requirements are arbitrary, undocumented, and largely depend on how the case worker feels on a given day. Common wisdom is to bring far more documents than asked for, just in case.

- Everything is paper-based. You are expected to act as a transport layer between offices that won't talk to each other. Everything is mailed, because digital communications are distrusted and digitalisation lagging far behind.

- Everything takes far longer than it should, partly due to the above, and due to chronic understaffing of government offices.

This is a problem in all major cities, and many of the smaller ones. In this case, n is a pretty big number backed by the many relocation consultants I work with. You got lucky, and I envy you.

freyfogle
14 replies
21h16m

Oh for sure it could be much better in Germany, and I hope that rapidly becomes the case. Definitely digitization needs to come faster.

My complaint is simply people imagining it is perfect elsewhere. Really that is not the case, no where is perfect. All the people chiming in about the US being so easy, yes, wonderful. Now let's talk about healthcare and how your health insurance is tied to your employer. Everyone who is extolling how simple the UK is, that's lovely. What a shame about brexit though.

The point is there are major pains absolutely everywhere.

hiq
4 replies
21h4m

To your counterexamples: if you move to the US or the UK for a job, you don't really suffer directly from Brexit or healthcare being tied to your unemployment. Sure, these could make things worse in certain cases (let's say you get laid off while in the US and end up having to get your own healthcare for a while).

The thing with bureaucracy is that it's part of normal life, there's no way around it. You can assume there's a 20% chance you'd get laid off in the US and that it would be bad, but there's a 100% chance you'll have to get a work or residence permit or something else in Germany, and it seems that the default is a painful process (reading the comments here).

The point is there are major pains absolutely everywhere.

There are still places such as Switzerland where things are better though.

mike_hearn
1 replies
9h12m

Swiss bureaucracy isn't really better, in my experience. It's not as overloaded but things are still somewhat German-like.

hiq
0 replies
13m

When doing what for instance?

I've never founded a company in Switzerland but it didn't seem that hard, talking with people who did. As an individual most of the things I've had to do (residence permit, taxes...) are also quite straightforward.

gentleman11
1 replies
20h19m

I’m a full time software developer, the lead programmer actually, but I don’t have health care. I have important unfilled prescriptions because of lack of money. So how exactly does a lack of health care not affect people?

throwaway2037
0 replies
16h51m

    > I don’t have health care
Are you based in the US? How is this possible? I thought it is a requirement to have healthcare now.

chironjit
2 replies
20h56m

You're missing the point here. It's bad, and it affects people's lives. It also fuels populist sentiment because people blame immigrants for problems not entirely related to them.

Worse still, if a german says fuck it and wants to run his business in Estonia, the org still has to pay taxes in germany

The only silver lining to all this are Spaniards, Greeks, etc say the system here is better than in their country, but I think you should strive to benchmark up and not down

mhitza
1 replies
6h9m

Worse still, if a german says fuck it and wants to run his business in Estonia, the org still has to pay taxes in germany

Why? Doesn't Germany have treaties with Estonia to avoid double taxation?

chironjit
0 replies
5h16m

There are CFC tax rules in Germany (like in some other countries). So though corporate taxes in Estonia are zero*, you will likely be subject to the German corporate tax system if the majority of the beneficial owners are based in Germany.

theshrike79
1 replies
13h51m

My complaint is simply people imagining it is perfect elsewhere. Really that is not the case, no where is perfect.

Perfect is the enemy of good.

In Finland I can't remember the last time I filled a paper form for anything. And I've gotten new debit and credit cards, opened bank and stock holding accounts for me and my family, renewed _very_ expired passports, applied for multiple loans (200k€+), started a company and worked with medical services (recipes, doctor appointments)

The only things that required physical presence were getting my kid's first debit card and fetching the passports, everything else was fully digital and remote.

kristofferR
0 replies
11h58m

Yeah, same in Norway. I think the last time I dealt with paper was in 2012, when I had to sign a document to get a .no-domain (before they changed to digital signing). I just signed it with Photoshop instead, since I didn't bother printing and then scanning it.

Everything is digital/easy here and has been it for a long time. Old people can still get a waiver to get government snailmail instead of secure digital mail though.

mike_hearn
1 replies
9h12m

> Everyone who is extolling how simple the UK is, that's lovely. What a shame about brexit though.

A part of the argument for Brexit was to enable simplifications of bureaucracy (obviously not for the specific case of someone in the EU migrating there, but for everything else). So that's not necessarily a great argument.

It hasn't been capitalized on to any great extent yet because the current government is weak and spent most of the time distracted by COVID. But the potential for simplification is actually there now, whereas previously it was often blocked by EU law.

Rinzler89
0 replies
8h42m

What exactly did EU law block in the UK that wasn't blocked in other EU countries?

j7ake
1 replies
14h42m

Within Europe: Austria, Switzerland, UK, NL are better than Germany for bureaucracy. Brexit may be an issue for Europeans, but the system is now more fair for non Europeans who want to go to UK.

Outside Europe: Canada, Hong Kong, Singapore is better than Germany.

Rinzler89
0 replies
8h40m

> but the system is now more fair for non Europeans who want to go to UK.

What wasn't fair before and what makes it more fair now for non-EU people?

TheCapeGreek
0 replies
13h50m

The requirements are arbitrary, undocumented, and largely depend on how the case worker feels on a given day. Common wisdom is to bring far more documents than asked for, just in case.

Years of derision of Greece and its processes and bureaucracy, vindicated... by having the same problems!

dpeckett
11 replies
20h56m

I can confirm that moving out into the bacon belt of Brandenburg drastically improved the quality of my public services interactions (as an immigrant). Getting an anmeldung done didn't require a 3 hour ordeal and the local Ausländerbehörde answers their emails.

My favorite Berlin anecdote is when my wife (then girlfriend) and I first arrived in Germany, she was unemployed for the better part of a year as no-one would give her a chance. She actually got quite depressed about it, and reached out about state sponsored integration courses as the language lessons she was taking were expensive and she wanted to do something more holistic. The authorities told her in no uncertain terms that they didn't care and that there were no places available.

My biggest bugbear with Germany is that the state intrudes extensively in your affairs, most of the time they are being benevolent but that intrusion brings in a tremendous amount a bureaucratic baggage. And that baggage is slow, paper based, and becomes a significant barrier for doing anything. In many countries the kind of paperwork you have to slave over here just doesn't exist in the first place.

FWIW my wife and I got married in Denmark. It was impossible for my wife to provide an up-to-date (less than six months old) translated copy of her Chinese birth certificate. Theoretically she could have traveled back to china (in the middle of the pandemic) and begged her backwaters local police authority to print a new copy but they weren't obliged to issue her one. Denmark was happy with her passport and some declarations from the local authorities in Germany.

Some days I really wonder why I continue to put up with the hassle, probably just sunk cost at this point and stubbornness. Wouldn't recommend Germany for anyone with a low frustration tolerance.

aleph_minus_one
4 replies
20h20m

My favorite Berlin anecdote is when my wife (then girlfriend) and I first arrived in Germany, she was unemployed for the better part of a year as no-one would give her a chance. She actually got quite depressed about it, and reached out about state sponsored integration courses as the language lessons she was taking were expensive and she wanted to do something more holistic. The authorities told her in no uncertain terms that they didn't care and that there were no places available.

Honestly, as a native German this anecdote rather sounds like your girlfriend saw the good side of the German bureacracy (and life) (you likely haven't seen the bad side ... ;-) ): the girlfriend asked for something and got a direct honest answer. This is German directness, which I would rather consider a German virtue, but often confuses people from other countries where answers tend to be more sugar-coated.

trueismywork
0 replies
16h56m

Lol no. German directness like most other things is a myth. It only shows itself often enough because people who "show" that directness are just rude and can get away with it. I have now had multiple people in power being extremely indirect about things that would make their position weak.

In rest of the world, the behavior of being "direct" only when there's no negative consequence is just called being a jerk.

dpeckett
0 replies
10h50m

We're talking about an interaction with the authorities here. In all developed western nations I am aware of (there's maybe 4-5 countries I've interacted with personally) public authorities will communicate in clear and direct language.

No the point is my wife was struggling, and she asked for help integrating, and the state refused to help her integrate. Even as a hardcore capitalist you should be in favor of getting immigrants into the labor market ASAP.

The irony is that fifteen years ago when she was a new immigrant to Australia, the state sponsored TAFE system was amazing for her, taught her English, and totally turned her life around.

data_maan
0 replies
11h42m

Duck this German "virtue"!

ProjectArcturis
0 replies
17h24m

If that was the good side, I certainly don't want to see the bad side. Maybe they gave her an honest answer, but the better answer would have been to help her learn the language.

sofixa
2 replies
9h28m

It was impossible for my wife to provide an up-to-date (less than six months old) translated copy of her Chinese birth certificate

I find this hilarious. It's the same in France, you need an up to date "original" of your birth certificate. But why? It's just saying you (full names) were born in XXX on a specific date. There's nothing about it that could change, really. In the country I'm from, your parents get one original on birth, and you can ask for copies from the town hall. But in France multiple administrations were extremely bothered that they weren't "original" (because they say DUPLICATA on them, and in French you get a shitty A4 with a stamped signature one can print at home, but they insist on an original) and weren't in French.

dpeckett
1 replies
8h6m

I actually looked into this, apparently its popular across western Europe (not just Germany) and a relic of historical times when the states didn't have centralized birth and death registries. I believe the limited validity and Apostille requirement is a medieval method to combat fraud.

As a new world Australian, the fact this remains in force is completely insane. In Australia the authorities can trivially query the birth and deaths register to verify the validity of certificates.

In Germanys defense, centralized registries were used by the Nazi regime to facilitate the Holocaust.

Anyway Biometric passports/ids pretty much completely supersede this use-case and can be as equally decentralized.

sofixa
0 replies
6h11m

Anyway Biometric passports/ids pretty much completely supersede this use-case and can be as equally decentralized.

Those are already in place in France, but some administrations still ask for a paper original (or scan of original) of your birth certificate. However some others have implemented some government-backed scheme where it automatically fetches your birth records from a government source (idk how it works behind the scenes) and it just works.

It was the same with a proof of where you live, it had to a be a bill in your name for electricity or something similar, but now it can just query popular sources such as the main electricity provider and just work.

dataflow
2 replies
20h50m

Interesting, so this means you can go to another country just to get married there? There's no requirement that one of you have some kind of tie to the country (working, or resident, etc.)?

dpeckett
1 replies
20h38m

Yep the Danes are an entrepreneurial bunch, strict cash for marriage document type deal (but all done very professionally, not some vegas chapel pony show).

Symbiote
0 replies
12h16m

The prices look very reasonable for Denmark, where everything is expensive.

I'm sure the local governments know it's a good source of tourist money though, hotels, restaurants and so on.

4ad
11 replies
21h6m

As bad as Germany is, it is better than average. Eastern Europe is harder, and Asia borders on impossible. Africa is literally impossible.

smabie
4 replies
19h1m

Africa and Asia are pretty easy, you just pay a bribe

Freedom2
3 replies
18h31m

Could you elaborate on this? I had a friend who joked about paying a bribe in Japan or Taiwan, do you think it would work there?

amrocha
2 replies
17h0m

No

Freedom2
1 replies
11h39m

Any reason why not? I'm genuinely curious about your previous comment.

amrocha
0 replies
9h58m

I'm not the parent commenter, but no you can't bribe people in Taiwan or Japan.

If I told you the only way to deal with the Canadian government is bribes, would you believe me? Then why do you believe it when talking about equally advanced countries?

throwaway2037
2 replies
16h49m

    > Eastern Europe is harder
Estonia, Latvia, and Lithuania? I doubt it.

scotty79
0 replies
16h13m

Even Poland is better. More streamlined. More digital. Depite underlying bureaucracy being mostly the same.

kalleboo
0 replies
14h27m

Asia borders on impossible

Japanese bureaucracy has a bad rap, but it isn't that bad. There's still paperwork (not much has moved online) but the public servant staff are super helpful and guide you through things and are helpful when there is some blocker. Especially in the past 3-5 years there have big improvements with a lot of paperwork and stuff that required your personal seal has been removed, and the MyNumber card makes doing anything online very easy. I've never ever had to fax anything as people joke about (and a friend in Germany actually had to do)

data_maan
0 replies
11h38m

Maybe your information is not up to date. 10-15 years ago you were probably right.

Since then Germany is trending down and Eastern Europe is trending up - and bureaucracy along with it. Digitization, customer friendliness, you name.

Even some random office in Serbia seems more pleasant than dealing with Germany.

Germany is trending towards becoming a has-been, like the UK (with the difference that in the current geopolitical context it's even proving to be an obstacle).

TheCapeGreek
0 replies
13h44m

You know, I would try and defend (South) Africa at least, but I really can't. I won't call it impossible though, again at least for ZA.

In my experience, ZA bureaucracy is simpler than e.g. Germany or Greece, but general operational incompetence and corruption makes it just as slow. It's a tradeoff of more easily understanding what you have to do, but you'll have to sit in a queue for 6 hours and hope they don't tell you "the system is offline".

The closest thing to legal bribery is to go through specialist firms that deal with the bureaucracy for you, for a fee. This is also much faster as they know who's who within each department to get things done faster.

I've had friends request old documents only to learn 8 months later that the archival facility burnt down a few years ago so they don't know what documents they do or don't have. Ask a firm to do it, pay a couple thousand Rand, and they'll get it done within 3 weeks.

Biganon
29 replies
21h34m

I refuse to believe it is worse than France. I trust the Germans to at least be somewhat efficient.

brnt
10 replies
21h15m

I've worked in both, plus the Netherlands. France has one forgiving element: usually some room for the human element. Germans civil servants seem happy to apply rules and procedures, even if they are clearly suboptimal. French civil servants would agree it's ridiculous and are more inclined to help you get unstuck if you can show them that you are.

France also seemed further along digitizing things.

Total duration is probably still a tie: it's all over the map but things can take ages in either country.

The Netherlands is great, except when it isn't. If you ever get stuck there, you have no chance convincing anyone. Their believe they have the best (civil) service doesn't help, but it turns out its all highly optimized for 'normal' Dutch citizens. As soon as your deviations from that norm start to add up, you're going to run into unhandled edge cases, which people won't handle (no protocol, and they are not used to using their own brain). "Computer says no" is Dutch (civil) service in a nutshell.

CalRobert
7 replies
10h57m

My family and I are Irish citizens and while the Netherlands has been good to us, it is surprising to me that when we go to the hospital you have to check in with a specifically Dutch ID. In the name of the person with the appointment. That seems OK since I have a Dutch driver's licence, but my 4 year old daughter does not, and they seemed to have no idea what to do with her. Usually we figure it out but there's not even a check in desk so I end up bumbling around asking random staff members.

com
5 replies
9h47m

Wow. I’ve never had to show ID at Dutch hospitals or clinics. My GP does the referral (!!! great GP!!!) or I turn up at A&E and the (medical) intake has begun. I speak Dutch though, maybe that makes a difference?

Edit:spelling and clarification on intake

CalRobert
2 replies
6h20m

tergooi MC in Hilversum has no one to talk to when you walk in, really. You get a ticket with your Dutch id, wait where it tells you, and someone calls your name. It's really efficient if you have Dutch id!

stoltzmann
1 replies
3h28m

At least when I was there last year, if you head left from the entrance there's a couple booths there. Usually at least one is staffed.

Also if I remember at Tergooi MC you needed to register in their system anyways before an appointment. In the past they issued a little plastic card at the very same booth.

CalRobert
0 replies
57m

Thanks! I called them last week and they told me I couldn't do anything without a specifically Dutch ID. ISTR seeing booths with no staff in the past, I will look again next time.

brnt
0 replies
9h15m

In many (?) hospitals, you need to take your ticket somehow when you enter. You can sometimes do this with the letter or email you got, but you can also scan a (Dutch) ID. See 'aanmeldzuil': https://www.zuyderland.nl/ziekenhuis/afspraken/aanmelden/

brnt
0 replies
10h9m

Yeah, I know what you mean. Also, even though my partner has a Dutch tax ID, we still can't file together ourselves, on account of her not having a Dutch ID, and therefore not being able to setup DigiD 'correctly'. We can have a tax consultant do it for us however!

Highly optimized for the happy path, which of course does cover 99% of cases, but you better not be in the 1% :) That's what I liked about France: nobody expects you to be normal, so everybody is used to working around systems. For the Dutch (and Germans), systems are sacred, and if they don't work, it must be you!

gryn
1 replies
20h50m

The digitization in france in making things worse on the edge though, the system are buggy and now you no longer have that human you can talk to fix things.

I remember not being able to create an account because the website password validation regex was buggy, I wrote an email about it and it's probably still not fixed. I've had to read the "compiled" js of the website to understand what was wrong to begin with.

I've had administrative processes slightly deviate from the happy path and getting stuck. When you talk to a human now. it's sorry can't do anything it's all online even when you explain that yes you tried other possible contact channels phone,email,in person, etc (email seems to go to /dev/null or get a canned response that clearly didn't read your message).

"Computer says no" is more and more of a thing now here in france. it's faster when you on the common happy path but if you aren't you better pray. Also the different services still seem unable to talk to each other even when they are in the same building / same administration but different department. Hopefully they'll improve that in 20 years.

brnt
0 replies
10h8m

At the very least I'm happy I can still see my pension was registered correctly and downloads the attestations to that effect. All without visiting an office in Paris only open on Thursdays 10:00-10:30am ;)

Rinzler89
6 replies
21h30m

>I trust the Germans to at least be somewhat efficient.

They're eficient at creating more bureaucracy as a universal solution to all problems.

Having dealt with Germany I have come to realize that excessive bureaucracy is basically a jobs program and a way for people to cover their ass whenever the shit hits the fan.

Something goes wrong and you're the big boss? Add more bureaucracy as your attempt to "fix" the problem and your justification to why your job is valuable to the company.

Something goes wrong on your watch? It's not your fault if you followed all the bureaucracy conjure by your bosses.

aleph_minus_one
2 replies
21h2m

They're [The Germans are] eficient at creating more bureaucracy as a universal solution to all problems.

Never ever confuse Germans with the German government (except if you are looking for trouble :-) ). It is well-known that what are "lawyer jokes" in the USA are "politicians jokes" in Germany.

ivan_gammel
0 replies
20h28m

German government just reflects the German society, which is happy to come up with an incredibly bureaucratic non-digital process on any random occasion. I was once told by a lawyer assistant in an email, that I need to call them to make an appointment for another call to discuss a billing issue. Needless to say, the matter could be clarified in a few emails, and those are the people who charge 150-200€ per hour. This is the essence of how the things are often done here by businesses which are supposedly rooting for efficiency and profit margins.

Rinzler89
0 replies
20h59m

I didn't confuse anything I meant exactly what I said. To whit:

1. German companies are equally as bureaucratic because the people and society in general are culturally so into it.

2. German government is formed by German people voted by other German people, they aren't ruled by some aliens that came from of the sky, therefore are representative for them.

data_maan
1 replies
11h21m

For some reason, _fear_ seems to be an important emotion in Germany that steers the collective.

Fear of the boss to be caught with a error on his (hence he adds more bureaucracy), fear of the general public to look racist (hence low policing in high crime area with many foreigners), fear of the case worker to get sued (hence applying the rules literally, to the detriment of the applicant),.etc

Rinzler89
0 replies
6h20m

Pretty much. I feel like the whole fear drive German conformism comes from the Prussian times where strict hierarchies were enforced and respected, where your superior is always right so don't question it, and the same top-down leadership culture can be seen today in big traditional German corporations.

EZ-E
0 replies
6h2m

Something goes wrong and you're the big boss? Add more bureaucracy as your attempt to "fix" the problem and your justification to why your job is valuable to the company.

This literally applies to big orgs as well with red tape, etc

nicbou
5 replies
21h33m

Germans are anything but efficient. At best, they're methodical. Speaking from experience, that is also a lie.

aleph_minus_one
2 replies
21h5m

Germans are anything but efficient.

Germans are (rather) efficient. The German bureacracy isn't. :-)

moooo99
1 replies
20h35m

Considering these bureacratic organizations are made up of people, most of them German, could you actually conclude that? :-)

mtsr
1 replies
21h12m

They’re not know for efficiency or being methodical, but for gründlichkeit - being meticulous.

Then again, anything like this is a stereotype.

nicbou
0 replies
16h22m

That is the most accurate term, I agree

Baguette5242
3 replies
9h45m

I lived in France, in China and now in Germany. I would say that somehow, France and Germany are quite similar, it's just that one suck more than another on specific areas and vice-versa. The net salary is somehow higher in Germany but the amount of subsidies you can get from the state is lower also so it's pretty much the same. I prefer the decentralized aspect of Germany (unlike France where everything is just centralized in Paris and the rest is just Silent Hill) and also the fact that you can just live without a car. From France I prefer the more liberal views on "What the state consider to be a family" which is light years ahead of Germany. This said, if you are a married couple with children, you'll get more money from the state in Germany I believe. I believe that Germany is more suitable for mid-40's traditional family, younger/wilder that that, it can be quite boring.

But all of this is just child play compared to how easy things are in China in terms of settle down (based on the experience of someone who has a job with a local company). I am tired of the pretentious western europe politics/administration point of view that immediately ranks everything (including good ideas) coming from Asia/global South as "not transposable to Europe" or just "not as good as our ways".

jonathanstrange
2 replies
9h37m

China has 0.07%, France 10.3%, and Germany 18% immigrants. It's obvious how this explains the difference and why no lessons can be learned from Chinese bureaucracy about how to deal with immigrants.

Baguette5242
1 replies
6h50m

Exactly what I was referring to in my previous post:

_I am tired of the pretentious western europe politics/administration point of view that immediately ranks everything (including good ideas) coming from Asia/global South as "not transposable to Europe" or just "not as good as our ways"._

Did you live in China as an immigrant, did you settle down there for several years, did you have to go through their immigration process ?

jonathanstrange
0 replies
4h22m

It's not pretentious to trust officially published statistics more than anecdotal opinions from random strangers on the internet, and since we're talking about a difference of several orders of magnitude no further arguments why the comparison makes no sense are needed in this case.

moooo99
0 replies
20h36m

I know Germany has this reputation and Germany can be very efficient at times. But the vast majority of the time Germany is anything but efficient.

The Administration is particularly bad. Most of the time, they're understaffed and digital infrastructure is completely lacking most of the places. Then, in many cases, there is also a ping-pong in terms of responsibilities. Sometimes your stuff is bouncing between different levels of administration (thank you federalism) and sometimes its between different departments. Its not unheard of that you have to provide the same data in different forms for the different departments working for the same agency.

The amount of time I have spend waiting in line to do something as simple as renewing my Perso (national ID) or requesting a passport. When I moved two years ago, I spent 4 hours waiting in line to sign a form stating that I moved here. Waiting for the passport was a similar waiting game (and that is as a German-born citizen, I can't begin to imagine how bad it is when you're also concerned with residency and visa stuff).

German companies love to complain about the bureaucracy of the government, but are effectively replicating that same bureaucracy without any need.

So no, most interactions aren't efficient unfortunately

miohtama
21 replies
21h6m

Get married in Denmark: This not a joke, but my friends did it (German woman, Indian husband). It Germany it would have taken two weeks. In Denmark you get it done in an hour (minus the booking of the time at the civil registry).

dark-star
15 replies
20h49m

I fail to imagine a scenario where "getting married fast" is a requirement. I mean you've supposedly been living together for a few years already at that point, so why is 2 weeks too much?

twixfel
6 replies
20h43m

If it's less work, it's less work. And it can take months if one of you is not German.

dpeckett
2 replies
20h31m

Yeh two weeks would be very quick for a German marriage involving foreigners, more realistically a few months at-least all things considered.

philsnow
0 replies
19h48m

Is the delay ostensibly to ensure the identities of the parties, and that's why it takes longer if any foreigners are involved? I could well imagine it being unconscionable for Germans to aver something they were not yet certain of.

nicbou
0 replies
16h31m

Two weeks would be quick for anything in Germany. 4 weeks seems like the standard for processes that run smoothly.

MrJohz
2 replies
19h32m

So this is pure anecdata here, but as a foreigner who married a German, it took a while, but it was relatively little work.

The biggest issue was that we needed one of my documents (the birth certificate) to have a seal of authenticity from my home country, which then all needed to be translated officially. That took longer than it needed to because we didn't realise it needed to be authenticated and so we got it returned at one point and needed to resubmit it. But apart from that, it was mostly a case of waiting for the formalities to go through - that took a couple of months in total, but it required relatively little work overall. I suspect in total, getting married in another country would have taken more work to organise and arrange, although it would probably have been quicker with the right combination of country and pre-existing documents.

Symbiote
1 replies
12h20m

Websites promoting weddings in Denmark start out saying birth certificates aren't needed. The marriage certificate is provided in 5 languages too.

Hundreds of non-resident trees marry in Denmark every week.

https://medium.com/@msosacordero/how-to-get-married-in-denma...

miohtama
0 replies
8h21m

Also no translated documents or notaries needed. They can read English in Denmark, unlike in Germany.

np-
1 replies
19h49m

I fail to imagine a scenario where "getting married fast" is a requirement.

This rubs me the wrong way a bit, and it’s because it’s clearly quite obvious there are many reasons you’d want to get married fast (emergency health issues, unplanned pregnancies, visa issues, etc etc. can come up with a million reasons easily).

You are really asking in a very ungracious way why doesn’t everyone just simply live like an ideal German.

cldellow
0 replies
16h31m

Me and two of my siblings have had marriages to facilitate work visas, permanent residence and access to health care during a pregnancy. (Also because we liked the other person, but like, we would have kept liking them regardless of whether we got married.)

Most pregnancies take a while, two weeks is plenty of time. Don't even get me started on how long immigration bureaucracy takes -- two weeks is a drop in the bucket.

Symbiote
1 replies
20h40m

A last-minute decision to be married before a baby is born. Being married can simplify other bureaucracy if the mother dies or is incapacitated.

dpeckett
0 replies
20h26m

People often forget marriage is also a legal contract (in Germany it simplifies so many things, eg. health insurance, joint income tax filings, etc).

I think most immigrants who get married in Germany are doing it for legal reasons primarily.

web3-is-a-scam
0 replies
18h46m

I had to get married fast because my travel agent failed to get our wedding license to Jamaica fast enough for our destination wedding to be legal in Canada. So we got married a few days before leaving to Jamaica and had the pastor on the resort “officiate” for the family experience even if we were already married (nobody knew except us). The “two weddings” were only a few days apart. My pastor at home dropped everything to marry us the afternoon we called him with our dilemma.

pchangr
0 replies
20h20m

I have a friend who got married “on emergency” because her visa was expiring and she would have to get back to her country of origin if she didn’t find a job in a few weeks. So .. yeah.. could happen. And it’s also not just about the time .. it’s also about the amount of documents, forms and all the offices you need to contact.

dukeyukey
0 replies
19h3m

You could say the same about forming a company, or purchasing a house, or countless other things. It's when they all add up the issues begin.

dpeckett
0 replies
20h42m

We ended up going the Denmark route due to the German process requiring, what was for us, unobtainable documents.

We've had a number of friends do the same due to similar issues, plus the German process can be very cost prohibitive once you start including official translators and such.

The Danish authorities accept a passport as a proof of ID, and the supporting documents can be in Danish, English or German.

lispm
4 replies
8h3m

These are the cases which Germany wants to avoid: "Scheinehe", where people get paid to marry and give the other person an "Aufenthalts- und Arbeitserlaubnis" -> allowed to stay and work in Germany.

There is quite a business around this.

dpeckett
3 replies
7h52m

Lets combat marriage fraud by making it a kafkaesque ordeal to get married in the first place.

Big brain move, how many innocent couples get caught in the net, versus how many fraudsters can you realistically catch (organized crime has figured out how to game the bureaucracy, no doubt).

lispm
2 replies
7h34m

Germany has laws and traditions around marriage.

If one doesn't respect German laws, best to go to a country which works differently and stay there.

dpeckett
1 replies
7h13m

That's the beauty of it, people will leave, and it won't be the people desperate enough to commit marriage fraud.

Anyway none of this is about respecting German law.

lispm
0 replies
3h47m

people will leave

sure, why not? People leave for various reasons. People are free to go.

Anyway none of this is about respecting German law.

Law and traditions. Marriage is a serious decision with lots of implications. It's not the bureaucracy (alone), which slows the process down.

Tainnor
18 replies
13h24m

Other people have already written this, but Berlin is not a good representation for Germany as a whole. It has been known for decades within Germany for having a dysfunctional government structure and administration (due in part to unclear division of responsibilities between districts and the city).

Elsewhere in Germany, bureaucracy tends to be tedious but functional.

The neglicence of the state of Berlin is actually illegal in many cases. I once even asked a lawyer if I could sue them for their delays, but he wrote back to me to the effect that he was too much on good terms with them to sue, but that I could pay him some money (out of my pocket, of course) so he would go "talk" to them.

mdekkers
13 replies
12h58m

Elsewhere in Germany, bureaucracy tends to be tedious but functional.

Data to back up your assertion that it’s only Berlin? I can speak for Düsseldorf, which is a total nightmare. Literally everything folks talk about regarding issues in Berlin also happens as a matter of course in Düsseldorf.

A friend of mine is high up in the NRW civil servants apparatus and he confirms it’s fucked across the board in NRW.

elbear
8 replies
12h38m

Do you know the causes for why there's so much bureaucracy? I wonder what the potential solutions are.

danieldk
7 replies
12h22m

The bureaucracy problem is compounded by not wanting to link databases between government organizations and a general resistance to anything digital that involves personal data (except Facebook et al. for some reason), which reduces efficiency a lot.

However, this is understandable given German history.

lifestyleguru
6 replies
11h40m

Schufa, Rundfunkbeitrag, and copyright trolls have no problem cross linking personal data between government databases in Germany.

However, this is understandable given German history.

So tired of this apologetics, modern German bureaucracy has been built exactly by former Nazis and Stasi agents.

mk89
1 replies
10h19m

So tired of this apologetics, modern German bureaucracy has been built exactly by former Nazis and Stasi agents.

I would argue that they are the best then to design something private :)

lifestyleguru
0 replies
8h39m

Yes after eliminating or mauling those they don't consider worthy living ;) lol hahaha.

Seriously though if you're allowed to corner part of the population and brutally vent on them, next you'll need "privacy" to avoid consequences and revenge.

Tainnor
1 replies
5h9m

So tired of this apologetics, modern German bureaucracy has been built exactly by former Nazis and Stasi agents.

The modern US was founded by slave owners, Spain was a dictatorship for longer than most of Germany, Poland was sliding into illiberal democracy until very recently, most of Latin America seems one recession away from a coup or revolution, ... there is a lot of continuity between liberal democracies and authoritarian governments. The roots of German bureaucracy also go much further back than the Nazi era (at least to Prussia).

I'm not really sure what using loaded language like this accomplished, though.

lifestyleguru
0 replies
3h7m

Post WWII era was the most impactful for the current state of affairs. The recent situation in Poland was nowhere close in terms of graveness in comparison with the other examples, no slavery of genocide was even marginally likely, not even hyperinflation.

hollerith
0 replies
3h2m

modern German bureaucracy has been built exactly by former Nazis and Stasi agents.

How frustrating for London and Washington to fight and win a war against the Nazis, then occupy (the Western half of) Germany for 7 years, imposing a new government on the country -- all to no effect.

danieldk
0 replies
5h53m

So tired of this apologetics,

Sorry, I didn't mean it as an apology, it's more that I understand the historical context (at least that's what several Germans have told me).

I strongly prefer the system where I live, where I can pretty much arrange everything government-related from behind a keyboard and a universal authenticator (DigiD).

nicbou
1 replies
12h36m

I only cover Berlin, but the relocation consultants I frequently talk to will confirm that it's even worse in other medium to large cities. The Berlin immigration office is doing well given the hand it has been dealt.

Semaphor
0 replies
11h51m

The immigration office in Lübeck, STB inner city, is overworked like everywhere, but they are competent, friendly, and decently digitalized. From what a US friend of mine who lived in many cities in Germany told me, it’s pretty much an exception, though.

asyx
0 replies
1h26m

What do you dislike about the city stuff? I think all bureaucracy I had to deal with with the city of Düsseldorf have been better than the state or federal agencies. Kita Navigator, Straßenverkehrsamt, appointments for the Bürgerbüro were all working pretty well online. Not all the way, of course, but post COVID Straßenverkehsamt is a million times better than pre COVID Straßenverkehsamt.

Tainnor
0 replies
5h5m

Like everyone else here, I don't have any data (I searched, but couldn't find anything), only anecdotes - my own experiences from living in Cologne and Berlin, and those of friends who live in Hamburg, Frankfurt, Munich, etc.

There are issues everywhere but Berlin is particularly bad. We weren't even able to hold a regular election without messing it up.

data_maan
2 replies
11h20m

Could you tell us the lawyer please?

I'd need someone who is well-versed in "talking". (Feel free to dm via my email.)

data_maan
0 replies
2h1m

Amazing, thanks!

danieldk
0 replies
12h30m

We lived in Tübingen/BW and it the bureaucracy was dysfunctional there as well.

zettabomb
13 replies
21h39m

Oh hey there! I've just moved to Germany from the US (not Berlin but hey, easy enough to apply the general knowledge elsewhere) and your site has been fantastic. Obviously I did not move because I valued bureaucracy, but I'm willing to put up with it partly for a fantastic job, and partly to escape the horror that is modern America. Thank you so much!

nickpp
12 replies
21h15m

I am curious: what specific horror of modern America are you escaping?

jeffrallen
11 replies
21h4m

I'm European because of US healthcare, insecurity, inequality, bad food culture, urban planning, and danger from natural and man made disasters, quality and cost of education.

Every single one of those things is better in my new European home.

zettabomb
10 replies
20h35m

A very good summary. There's also more Nazis in America than in Germany, and more far-right hatred in general.

nickpp
3 replies
11h6m

Thanks for your reply. Care to be more specific? I guess I am more curious about how you were personally affected than generic sweeping statements.

I live in the EU and I used to live in USA for a while so I am always looking for similar experiences and comparisons.

Thanks again!

ImPleadThe5th
2 replies
8h34m

Hey! I am a different American living in Germany.

For me (and I didn't fully appreciate this until I moved here) there is an incredible amount of mental overhead in the US.

Questions you don't have to ask yourself in Germany:

- What happens if I get very sick? Do I have enough savings for cancer?

- What happens if I lose my job? Do I have enough savings to get by if my job fires me?

- What happens if something happens to ny car? How will I get to work? How will I get my groceries?

- What happens if someone has a gun in this crowd? How will I get out? How can I protect people? Is that sound just a car backfiring or is that a gunshot?

- Am I saving enough for retirement? How will I get healthcare when I'm old? How do stocks in my retirement account work? Is this person trying to help me retire or trying to make money off of me?

Naturally most of these problems can be resolved with enough money.And you can have a comfortable life in the USA with enough money. And if we're being honest there are European counties that struggle with similar but maybe not all at once.

There are many things I miss about the US, and maybe someday I'll return. But there is much less financial/life planning related stress for me here

zettabomb
1 replies
5h18m

All fantastic examples. A semi-joking game we used to play at my high school was "Firework or gunshot?". A few more to add:

- If I call the police, will they help? Will they help me? Many people I know are SCARED by the police when they're just minding their business, which I'd say indicates something wrong. We nearly had a civil war in 2020 over police killings. - Very little walking or biking infrastructure. Very long distances between commercial and residential areas too. Even trying to be environmentally friendly feels pointless sometimes when you have to drive 10 or 20 minutes just to go to a recycling center. - Workers' rights are a joke in the US. OSHA regulations are only followed after someone gets a bad enough injury. Good luck getting any compensation for that too, the phrase "worker's comp" is a joke all by itself. - The cost of secondary education is ridiculous. I have loans from college, as do most of my friends, and we've been paying those of and will be paying for years to come.

You're very much correct that some or all of these can be resolved with enough money. But even for someone with the cash and connections to make such a drastic and expensive move, it's a lot. I'm sure as time goes on I will find more examples.

nickpp
0 replies
2h10m

Thank you very much for your (and the GP's) input. Interesting perspectives.

As I said, I was hoping for more personal experiences like "this happened to me so I decided to leave" than just perceptions and perceived fears which can be too easily influenced or biased. I can understand how they add up and create stress but so does flying for a lot of people - while being one of the safest modes of transportation.

For example, going to the US, my main fear was violence, and more specific gun violence and terrorism. Luckily I never encountered either, even if there were quite a few shootings and even 9/11! during my very stay. Today I'd just say these are statistically insignificant events (as horrifying as they are).

Secondly I was terrified of losing my job - with everything it entailed, especially my work visa. And I did get fired, eventually. Luckily the whole thing went swimmingly, with COBRA & severance pay picking up the slack during a short search and my next company continuing my visa sponsorship.

I was also afraid of cops (thanks, Hollywood!) but all encounters I actually had (noise complaints during parties and traffic stops) were quite amusing & polite.

In the end I had an amazing, positive experience living in the USA and it also helped me appreciate and understand Europe better. After all the years living in the EU now I could write a whole lot more about the horrors here (corruption, bureaucracy and the Russian threat easily come to mind) but that's not the topic and I am too old to believe there is a perfect place for everybody. Each choice is personal and it's composed from countless subjective, even subconscious factors - so good luck with yours!

Hrun0
2 replies
14h4m

Bold and utterly wrong statement

zettabomb
1 replies
5h39m

Any reason you think so or are you just not paying attention? Far-right sentiment is rising in the US by any metric.

Hrun0
0 replies
2h33m

I belong to an ethnic minority in Germany and had real Nazis, not Neo-Nazis, as neighbors growing up. Just because you don't know how racist the average German views are, doesn't mean it isn't so.

- CDU, which is politically the closest to the Republicans, is by far the strongest party now

- AFD, actual Neo-Nazis, are the second strongest party in recent polls

- East Germany is basically a giant No-Go area for PoC, with a couple of exceptions.

https://www.wahlrecht.de/umfragen/

Daz1
1 replies
13h36m

There aren't Nazis anywhere in any quantity you should worry about, turn off the CNN

zettabomb
0 replies
5h38m

There was literally an attack on the US Capitol building three years ago. There was a Nazi march on the Tennessee state capitol building six weeks ago. I don't need CNN to see it with my own eyes.

barrysteve
0 replies
12h35m

Same Nazi and far-right hatred phenomenon in Australia. It's a global thing.

Having British roots attracts pressure from the locals. Ironically enough, given the countries' origin.

smarnach
3 replies
10h8m

I think that's vastly overstating how bad it is. Maybe it's different if you are a German citizen. Just as an example, I never did anything other than signing the contract to get a job. I filled in a single form for each of my two kids when they were born. We got the forms in the hospital and just left them there. Similarly for registering a car -- there was a single simple form.

tietjens
1 replies
6h12m

I disagree. This is not in any way overstating the state of things.

Have you ever changed cities and needed to change Finanzbehörde? Have you ever registered for driving school? Have you ever tried changing from one driving instructor to another? Have you ever got married in a district where there are no appointments for marriage? Have you ever been unable to take your children out of school to attend a family funeral in a different country? Have you ever purchased a car in a State different from the one that you live in? Have you ever had to experience the nightmare of applying for unemployment money? Have you ever tried picking up your child's sick notice without their insurance card, but just only your own ID?

I could go on and on... Not all of these are on the same level of annoyance/senselessness but there are countless more examples. The bureaucracy and stiff insistence on following processes and rules at the expense of common sense are everyday occurrences.

In my experience what is most amazing is how most citizens of this country just accept this and don't find it unusual.

allarm
0 replies
3h26m

Have you ever registered for driving school?

What's so difficult about that? That was 10 minutes long process for me. I changed cities so I had to change the driving school as well and there were no issues at all.

Have you ever tried changing from one driving instructor to another?

I haven't but my school encourages people to do that if they find that they don't click with their instructor.

Not arguing with the rest though.

zarzavat
0 replies
6h34m

It’s much less of a problem for people born in Germany because the burden is spread out over many years of their lives.

If you immigrate to Germany then you need to instantiate yourself in the German bureaucracy everywhere at once, and that bureaucracy has a hostile indifference to the concept of immigrants.

schnitzelstoat
2 replies
9h54m

You should see Spain... basically the same but impossible even to get an appointment. There are dodgy third-party people that sell them on Facebook (I guess they use bots to get them), that's how bad it is.

bigbacaloa
0 replies
8h44m

Having immigrated to Spain, it's not so bad. Everything is done digitally. There is a unique personal identifier. Something like filing tax returns is genuinely very easy.

amval
0 replies
9h49m

Might depend on where you are in Spain. Having lived in both, I'd take Spain over Germany any day of the week.

constantcrying
2 replies
9h20m

As a German this never really happened to me. I even own a business here, not a GmBH though. Took one document to fill out about an hour of "work".

I really do not get these complaints at all. Even Taxes can be filled out easily with a pretty good online form. None of the bureaucracy ever happened to me, except it is annoying to book appointments. The only things that need addressing are the chronically understaffed government offices and the ridiculously high taxes which are constantly being wasted on utter nonsense.

earthnail
1 replies
6h21m

I'm German and have a GmbH. Go found one; it's completely ridiculous. Not just founding it, but running it, too. Esp. when you know how easy it is in the US/UK/Sweden (the three other places I've lived).

formerly_proven
0 replies
5h46m

Several people close to me own-operate GmbHs and it's probably the best vaccination against entrepreneurship there is.

bradhe
2 replies
20h56m

Just wanted to say thanks for your awesome work! allaboutberlin.com was a massive help when I moved here—and continues to be, whenever a new paperwork hurdle presents itself :). You’re doing great work!

rkachowski
1 replies
9h13m

Truly, it's one of the best and clearly laid out resources out there. I've found a lot of online resources around Berlin life to be frankly hostile (e.g. r/berlin ) to people seeking information on how to approach things like appointments and complying with state regulations.

allaboutberlin.com seems to be comparatively devoid of frustration and objectively lays out the situation + steps to be taken in each situation.

nicbou
0 replies
7h16m

Thank you!

I often think about starting a community that functions like /r/berlin, but with a professional moderator like dang to maintain decorum, deduplicate threads, and generally keep the place tidy.

With Toytown Germany simply vanishing, there's both a need and a market for it. I just never want to be a moderator again.

rtpg
1 replies
13h44m

I got married in Japan so was curious about the differences. The two differences seem to be needing to schedule an appointment and needing proof of income. Doesn’t seem really much worse than most countries (tho I can get Denmark being easier)

I do place some blame on embassies not issuing documents in local languages. I’m not asking for proof I’m not married for fun! Extremely unhelpful, tho a good job generator for translators.

In the end tho, lots of these convos are based off of people coming from the Wild West of common law, which leads to the US government saying stuff like “well we don’t know if you’re married but you can sign an affidavit in front of us”. The American Empire, barely capable of a proper census!

Things can and should be improved, but I do think it’s good to be cognizant of the fact that many countries off of differing axioms (especially when it comes to things like the need/interdiction of knowing where your residents live)

zarzavat
0 replies
6h49m

The common law jurisdictions are simply more honest. If German requirements force people to marry in Denmark, and registering a foreign marriage in Germany takes 4 years to process (the actual waiting time in Berlin), then Germany doesn’t know if someone is married either. They are just more willing to pretend that they do.

mfiro
1 replies
4h47m

I've been living in Germany for more than 7 years and I can only verify this. The offices in big cities are overloaded with requests and getting an appointment for things like renewing documents can takes weeks if not months. Not to mention the naturalization process which can take up to two years[0].

A solution for this in my opinion would be to centralize these processes and make them online, like making a government portal for the whole country. But for that many rules should be changed, which is highly unlikely.

[0] https://www.tagesspiegel.de/berlin/zwei-jahre-warten-auf-die... (German)

tpm
0 replies
4h35m

You can't centralize them, as in, it's simply not possible because Germany is decentralized. It's not that many rules would have to be changed, the Constitution would have to be changed. It's completely impossible.

The processes are going to be online, this is mandated by law, it will take years, but it is being worked on (some are already available online). They will still be provided by the respective municipality.

bboygravity
1 replies
10h19m

Now try Portugal. It will make Germany look like a walk in the park.

iamsaitam
0 replies
10h12m

Are you kidding? Specially with the article in the topic referring to creating a company. Search for "Criar uma empresa na hora".

artirdx
1 replies
7h18m

Your website is very informative. Please build something equivalent for Munich.

seb1204
0 replies
7h7m

Feel free to start this yourself if you have first hand pain.

zrules
0 replies
18h9m

From all the comments in this thread it seems like everyone is in agreement Denmark has less bureaucracy. Is it also a better place to set up a company? Do more companies get acquired from Denmark than Germany?

tbyehl
0 replies
4h39m

I once saw a survey, possibly from the Annals of Improbable Research, asking how many people constitute a bureaucracy. My favorite response: One German.

See also: The Checkpoint Charlie scene from the 1985 movie Gotcha!

samtuke
0 replies
4h50m

I got married in Denmark for this reason. Super easy. Costs plenty. Smart economic strategy.

raverbashing
0 replies
11h39m

the best way to get married in Germany is to get married in Denmark

True. And not only for Germany

(The Netherlands might be a good second choice as well)

qmmmur
0 replies
19h20m

Thank you for your website. It has helped me immensely.

liendolucas
0 replies
8h35m

Come to Italy, it can't be any worse than here. Here bureaucracy is a huge and very lucrative business. Getting a driving licence privately here is the epitome of stupidity. Honestly I can't understand how so many basic common-sense things in life are self-over-complicated just to favor bureocrats and state-maintained employees.

krsdcbl
0 replies
6h4m

If u really wanna have "worst of all worlds" though, i can only recommend Austria.

Basically it's the German-grade paper bureaucracy described here, but spiced up with a truckload of what i would describe as "negative global southern stereotypes":

- Everything has to be strictly processed by the book, but ... - "the book" closes Friday at noon, no wait, today it was 10:00, come by next month, we only process such requests on the first friday of the month. Oh wait, Mrs Soandso is on vacation next month, would June suit you? - the one managing "the book" doesn't like your face/surname/tone/something? You might wanna try another city ...

In short: it's all strict and utterly beaucratic like you'd expect in Germany, but at the same time ripe with small time corruption, incompetence, and petty xenophobia

(Small anecdote: I actually once had to get a lawyer to register a company, since the person responsible for my file at the business court thought my surname was sounding a bit too "foreign" and demanding I present a valid staying permit -- which I do not need (and therefore couldn't even get) in Austria. Straight up refused to process my filing until my lawyer requested a legal statement in writing)

ketzu
0 replies
7h51m

From the examples, I can only fully appreciate the marriage part. When a foreigner wants to get married in germany, they need to prove they aren't married in their home country yet. Getting these documents can be a huge hassle or even impossible. This made a few international couples I know go to denmark to get married.

Any process around immigration seems pretty awful, just based on the overwhelmed and (often) unhelpful offices (based on reports from the former friends again).

On the other hand, buying and registering a car was quite easy and possible online, besides picking up the car at least. (With some caveats though. Wanting an electric license plate at the time needed me to go by in person to show them the certificate of the car.)

jupp0r
0 replies
58m

FWIW, I got married in Germany (as a German to another German) and it was surprisingly straightforward compared to other acts of bureaucracy that I've seen.

jacomoRodriguez
0 replies
3h58m

Just wanted to say "hey", when reading the topic and you nickname I thought is was you. The link in you commented confirmed it. We met at verkstedt (Mario)

hnbad
0 replies
4h35m

Another fun example: if you have a child, you won't automatically get Kindergeld (child benefits) even though you have to sign paperwork for the birth certificate. You have to apply for child benefits and parental leave and maternity compensation and you have to notify each relevant institution individually yourself.

There are good and important reasons certain public institutions aren't allowed to share data by default but instead of making that data sharing opt-in, it's completely offloaded to you personally.

histories
0 replies
11h1m

Your website is amazing and has helped me personally thousands of time. It became the first quick english reference for everything when I first moved here. Thank you!

fullspectrumdev
0 replies
44m

Your site was a complete godsend when I lived in Berlin, though eventually the excessive paperwork was a major contributor towards my decision to move elsewhere.

A few other people I know who left after a couple of years say the same - endless bureaucracy and extremely dysfunctional local governance (eg: the clusterfuck with rent control where some people had to pay backrent) made the decision to leave easy.

changethe
0 replies
4m

I really don't understand the getting married part.

I got married last month in Germany. We live abroad together (I am german, my wife is from a non-EU country), so I was expecting it to be a lot of paperwork.

But overall it wasn't all that bad... both of us had to get the Ehefähigkeitszeugnis (to prove you are not married already), and one or two notarized documents... but overall it wasn't much stress. We pretty much got all the documents within one week, with about 1-2 hours of work put in.

I agree that Germany can be very bureaucratic in a lot of areas, but getting married really didn't seem to be that complicated.

cf
0 replies
17h49m

I just want to take a moment and say your website has been a real lifesaver. So many headaches avoided by consulting it!

bacteria
0 replies
3h45m

Hey nicbou, a fantastic website thanks for your efforts. While reading your Bank article I noticed a potentially outdated information concerning ING as I am also an expat and was able open a bank account there.

"ING: You need German permanent residence or citizenship to open an account. Some students could open an account with a residence permit. Their customer support speaks English."

bouncing
69 replies
1d9h

Not to brag, but there are so few things to actually feel some civic pride for in America, and business registration is one of them, so I guess we have that.

I can get an IRS EIN (tax ID), register an LLC, obtain a sales tax license (only required for selling stuff), and open a business checking account in about 2 hours in Colorado. Someone who knows what they’re doing and doesn’t spend time researching banking options could probably get it all done in 30 minutes.

Alternatively, a legal services company will do it all for you for about $500. If you have partners and want multiple shareholders, the price jumps to about $1000, but you can also do that on your own.

yau8edq12i
62 replies
1d2h

Unless you're opening companies on a daily basis to evade taxes or whatever, I fail to see why you would need the process to be that fast. Because with such short delays, nobody will have actually checked anything, so the only winners are fraudsters, in the end.

_dain_
40 replies
1d2h

Every little speed bump you put in the way will deter some people on the margin.

yau8edq12i
36 replies
1d2h

If you have 25k€ of capital but get flustered because the state wants to make sure that you are not opening a shell company for someone else and that your articles of incorporation are legally valid, then maybe you need to rethink something.

bouncing
27 replies
1d1h

I had my first LLC in grade school over a summer. I didn’t make a ton of money, but I did earn enough for my first real computer, which launched my interest in programming.

When my wife started her current business as a consultant, she was living off her savings from teaching high school. If you think every entrepreneur has €25k of capital, you need to reevaluate what your country thinks of entrepreneurship.

Scarblac
17 replies
1d1h

Why did that need limited liability though? In Germany you'd just become an entrepreneur with a simpler company type without limited liability.

paleotrope
15 replies
1d

Do you want to take the risk of losing your home just to start a business?

Scarblac
10 replies
1d

Maybe the real difference is that such things might be possible in the US, but sound laughable in Europe?

What would you need to mess up to be liable for huge sums as a single consultant company?

twixfel
6 replies
22h58m

The UK is in Europe and it is easy to found an LLC. In the UK for example, there is no capital requirement at all. That's a lot les than 25k€.

upvota
5 replies
22h34m

_Was_ in Europe.

upvota
1 replies
13h16m

Fair enough - I meant to say: for business reasons, a UK LLC won’t do you much good in terms of hassle free company setup inside the European Union.

twixfel
0 replies
7h31m

The discussions is not about setting up an LLC in the EU, but specifically in Germany. Subsequent to that we are comparing this with other developed countries in the world, not all of which are in the EU, which is fine, and does not undermine the comparison.

twixfel
0 replies
21h22m

Europe is a continent. They're not in the EU. If being in the EU is a requirement to be in Europe: that means Switzerland is not in Europe?

rad_gruchalski
0 replies
8h13m

Where did they move to? I heard something about them leaving the EU, but Europe?

dpassens
0 replies
22h9m

What continent did they move to instead?

bouncing
1 replies
23h57m

It’s unlikely you’ll lose it all, but suppose you write a clever app — maybe a cvs editor.

Suppose you find out your cvs editor infringes on a patent and you’re liable. Suppose some business suffers data loss and sues. These things do happen in Europe too.

Also, it’s just a matter of professionalism. A sole proprietor isn’t very professional and many medium-size businesses won’t do business with sole proprietorships.

martijnvds
0 replies
23h26m

You can probably get insurance for that.

xenospn
0 replies
1d

There’s tax benefits and other business-only products that require a business entity.

Imagine if you’re a consultant and for whatever reason, you get sued or worse. That’s what the LLC is for.

nolist_policy
3 replies
21h32m

Personal insolvency sucks, but you won't actually loose your home here in Germany.

JumpCrisscross
2 replies
18h2m

Personal insolvency sucks, but you won't actually loose your home here in Germany

Germany insolvency can take a decade, make getting a flat or even keeping your bank account a challenge and rarely results in debt relief to boot [1].

[1] http://www.privatinsolvenz-hilfe.org/en/german-bankruptcy-la...

nolist_policy
1 replies
8h41m

You couldn't have found a shadier source pushing FUD, if you tried to.

rad_gruchalski
0 replies
8h15m

Which does not change the fact that the process takes a decade.

bouncing
0 replies
1d

So your liability is limited. That’s like asking why you need a seatbelt.

You can get the simple company type (disregarded entity) and all the advantages of limited liability with an LLC.

yau8edq12i
8 replies
1d1h

As explained in the article, if you don't have 25k€ of capital, then you open an Einzelunternehmen (sole proprietorship), not a GmbH (LLC). It's a much simpler process.

tdullien
2 replies
1d

A GmbH is not like an LLC, it's more like a Delaware C-Corp. People forget this all the time.

ufocia
1 replies
19h53m

Why Delaware?

novaRom
0 replies
9h44m

Delaware is a popular state for incorporation in the United States due to its favorable corporate laws and established legal precedents. A C-Corporation (C-Corp) is a type of business structure that is a separate legal entity from its owners (shareholders). Shareholders have limited liability, and the corporation itself pays taxes on its profits. This is different from an LLC, where the owners report the profits and losses on their individual tax returns.

pantalaimon
2 replies
21h29m

You can also create an UG (haftungsbeschränkt) which is basically a GmbH with the 25k€ requirement removed. The only drawback is that this can make the operation look less trustworthy, depending on whom you are dealing with.

If you are selling Hot Dogs, nobody will bat an eye if it’s a UG, but if you apply for a big software contract, people might be wary.

ufocia
0 replies
19h54m

I'm skeptical that an at most 25k€ recovery would alleviate weariness of a big software contract without additional due diligence.

It seems to me that a sole proprietorship would do more to protect against counterparty risk, i.e. more of the person's assets would be available to satisfy the debt.

My guess is that counterparties prefer a limited liability partner to arguably insulate themselves from employment liabilities.

seabass-labrax
0 replies
20h16m

Presumably the UG is still preferable to being a sole trader when dealing with much larger customers. Is that right? Or does providing services in your own name come across as more trustworthy to those parties?

bouncing
0 replies
1d

There are a lot of reasons not to form a sole proprietorship. You have personal liability, for one.

amaccuish
0 replies
5h34m

Can confirm, did the form online in Berlin, super easy and quick.

_dain_
7 replies
1d2h

I disagree. 25k euro is simultaneously a large and not a large amount of money. It's big enough to lock out many potential small business founders. But also many ordinary inexperienced people can have that amount of money up front, yet still be deterred by the complexity of a 6 week long incorporation process as described in this article. Especially in the early days of a company when your stress level is already through the roof dealing with the actual problems of your new business.

I am generally suspicious of rhetoric like "you're a little well off, so we can heap arbitrary amounts of bullshit on you and you shouldn't complain".

yau8edq12i
6 replies
1d

It's big enough to lock out many potential small business founders.

They can open an Einzelunternehmen (sole proprietorship) instead. You shouldn't (and cannot) go all the way to the complexities of a GmbH (LLC) if your company is that tiny.

But also many ordinary inexperienced people can have that amount of money up front, yet still be deterred by the complexity of a 6 week long incorporation process as described in this article.

Back to my point then. If they're not ready to put up with okay-ish bureaucratic friction in the founding phase, they're not ready to open a company. Because if you think opening the company is hard, wait until payroll or tax season is upon you.

I am generally suspicious of rhetoric like "you're a little well off, so we can heap arbitrary amounts of bullshit on you and you shouldn't complain".

You're completely mischaracterizing what I said. Don't do that.

_dain_
4 replies
1d

>They can open an Einzelunternehmen (sole proprietorship) instead.

Sole proprietorship doesn't have liability protection. That's not a small thing.

>You shouldn't (and cannot) go all the way to the complexities of a GmbH (LLC) if your company is that tiny.

"[Thing] is too complex, don't bother with it" is not an argument against making [thing] less complex. It's actually just a restatement of the problem!

Other countries make it easy to set up a limited company. UK, US, Singapore, they're all just a token fee and a handful of forms. I see no reason for Germany to make it so difficult as described in the article.

A lot of successful companies were started by broke college grads out of their dorms; they would never have gotten off the ground if they had to scrounge together the equivalent 25k euros before even getting started. Hell, I don't have a spare 25k lying around and I've been working full time for 4 years.

pantalaimon
3 replies
21h26m

You can create a UG (haftungsbeschränkt) with all the lability protection of a GmbH with 1€ capital.

rad_gruchalski
2 replies
8h7m

Yes, but you need to keep one third of the profit in the company until you reach the €25k, then you convert to GmbH.

tainted_blood
1 replies
6h0m

i don't see a problem with that.

rad_gruchalski
0 replies
5h35m

I haven't said it's a problem but virtually everyone pointing at UG as a fix to GmbH Stammkapital fails to mention it.

data_maan
0 replies
10h59m

If they're not ready to put up with okay-ish bureaucratic friction in the founding phase, they're not ready to open a company.

With this mentality, it's actually a miracle a German startup scene exists at all.

The _last thing_ a founder wants is to wade through useless bureaucracy when there's a product to push and Vacs to talk to.

But Germany never really was a founder's country, and much more ruled by big conglomerates it seems or small family business who did non-innovative things (the bakery at the corner - necessary&nice, but not innovative), than startup culture.

tticvs
0 replies
1d1h

Most self-employed people in Germany operate as "Kleinunternehmer" and therefore lack the liability protections provided by the LLC equivalent discussed in the article. It's apples to oranges.

lttlrck
0 replies
22h41m

That depends how they defined self-employed. It could vary widely based on which vehicle was used, LLC, LTD, sole-proprietor. And LLC and LTD is ambiguous, yet easy to attain outside Germany.

shaism
4 replies
1d1h

I think the time is not necessarily the issue. The issue is that everything is very manual and “analog” in Germany. You have to find a notary, register the “Gewerbe” at the Gewerbeamt, get a tax ID, and so forth. All are different processes with different institutions.

In theory, you can do the notarization online, but when I attempted to do it, the first notary did not even reply, and the second one told me: “The system is currently down. I would need to come to the office.”

In the US, you can just use Stripe Atlas or similar services, and get everything done for $500 in a nice digital interface within 2 or 3 days. But even if it took 2 weeks, it wouldn’t matter much because one doesn’t have to put time and energy into it whereas in Germany you have to contact people, coordinate, etc…

yau8edq12i
3 replies
1d

The friction is precisely the point.

tverbeure
0 replies
22h9m

These kind of frictions are typically not an exception. When I read this blog post about the steps to just start a business, I immediately assume that there'll be similar frictions during other steps. And indeed, the comments here talk about the difficulty to own a home when the money was already paid in October, how it can take up to 2 years to close down a company, or how there's a 30% exit tax even if you leave the country only for a few years.

The friction that you seem to like has almost certainly cost Germany a good deal of jobs from people who decides that the hassle just wasn't worth it.

jimkoen
0 replies
1d

It is and it isn't. The IHK registration is a sham, since they're a government protected cartel that don't even act in the interests of those they're supposed to guard (like Azubis).

Aerbil313
0 replies
8h40m

Security through friction is not an ideal security model at all.

rad_gruchalski
2 replies
8h17m

WireCard GmbH AG, thanks commenter from below.

nolist_policy
1 replies
8h15m

Come on. WireCard AG

rad_gruchalski
0 replies
8h7m

Even better heh.

anaidenov
2 replies
22h5m

A seasoned fraudster or tax evader have all the experience, time, and resources to navigate and exploit the system regardless of the measures in place.

On the other hand, an ordinary individual considering starting a new business, perhaps only a few times in their lifetime, may indeed be dissuaded from pursuing this venture.

This issue mirrors the inefficacy of anti-money laundering policies, which, while intended to curb criminal activities, have a negligible impact estimated at merely 0.1%; but the global cost of implementing these policies exceeds their benefits of two orders of magnitude (see DOI:10.1080/25741292.2020.1725366 for details).

redrove
0 replies
12h18m

Excellently put, I couldn’t agree more!

If you’re an entrepreneur AML will cause you nothing but harm while the rich avoid it through the caribbean, Luxembourg, Monaco, Switzerland, etc.

paulddraper
0 replies
21h39m

Do you actually need to do it in 2 hours? No, of course not.

And you probably won't do it that fast anyway. But that figure demonstrates the small amount of red tape.

nickpsecurity
0 replies
21h21m

What you are actually saying is that speed is only for criminals and anything honest must drag out for a long time. Neither are true.

Starting this process should only require that they know their responsibilities, have identified themselves, and have fulfilled any obligations like payment. With government having our ID’s and login/sig/payment tech, each step should be done in seconds. Then, some fraud prevention spotting obvious issues might add a bit more time. It should still be quick.

matchbok
0 replies
15h38m

There is not less fraud in Germany. Time does not equal quality or validity. It just means time.

mNovak
0 replies
1h3m

Just because something is important doesn't mean it has to be inconvenient. A lot of people conflate opening a business with a major life event and embarking on a career, where a few weeks of admin is some kind of minimum commitment. But the whole idea is that we should allow for small organic "side hustles" and growth.

Here in the US (at least in entrepreneurial circles) it's common advice to wrap an LLC around anything that involves money. Hobby website starting to get some traffic? LLC. Selling earrings at the craft fair? LLC. I own a small building with my brother--you bet there's an LLC there. I started a $0 capital consulting company while a post-doc, just to try.

It's not a daily occurrence, but often enough that I don't want to waste time.

logicchains
0 replies
22h58m

When you have hundreds of millions of people in a country, there's a lot of companies being opened on a daily basis, and the time wasted on bureaucracy quickly adds up to a dent in overall national productivity.

data_maan
0 replies
11h6m

Process is too fast...

Are you a German? :D :D

bouncing
0 replies
1d1h

Your individual identity is tied to the EIN, LLC, and bank account. I doubt it’s that useful for tax evasion.

Each little step of friction discourages some entrepreneurs and adds barriers to entry for incumbents to prevent competition.

And just in general, not doing something very often is not a valid reason for making it needlessly expensive and time consuming.

blackhawkC17
0 replies
1d1h

Ease of doing business is one of the top things to look at in any country.

It’s on law enforcement and regulators to counter fraudsters. Ordinary citizens should not bear pain because of them.

benced
0 replies
14h39m

I don’t like this mindset that just because an individual can see why something needs to be better, it shouldn’t be.

arp242
0 replies
22h15m

It doesn't need to be that fast, but the process in some (or maybe even many?) EU countries is rather ridiculous, as described here.

Anyone should be able to start a business, reasonably easily and cheaply – I feel it's a matter of basic freedom and liberty: you should be able to do what you bloody well want with your life, including starting a business. Basic protections to prevent the most egregious of abuse is fine, but mostly it's just about registration and paperwork.

Having to pay tens of thousands of euros for limited liability so you don't risk getting completely assraped if your business fails is how you keep the poor plebs in their place. All of this is classic "one set of rules for the poor, another set of rules for the rich" type of stuff.

tdullien
4 replies
1d

Important to realize: A GmbH is much closer to a Delaware C-Corp than to an LLC.

ufocia
2 replies
19h49m

Why this fascination with Delaware? How are Delaware corps different from other states' corps?

dragonwriter
1 replies
19h46m

Mostly, it’s that Delaware’s corporate law is more developed so investors have more certainty of what they are getting; this is also a self-reinforcing condition, since the preference for Delaware corps means more corporate issues get resolved under Delaware law.

JumpCrisscross
0 replies
18h7m

Delaware’s corporate law is more developed so investors have more certainty of what they are getting

Delaware courts are also efficient, which makes litigation less likely to turn into a multi-year and multi-million dollar affair.

nwellnhof
0 replies
20h56m

Yes, a GmbH is a corporation and mostly dissimilar to an LLC. In Germany, there's no such thing as an LLC, except for some professions. So if you want limited liability, you're only option is to incorporate.

xxmarkuski
54 replies
1d1h

To be honest, I don't think much of notaries and believe that they stifle innovation and harm the German economy, especially SMEs, but also clubs and citizens. For example, the purchase or sale of a property can only be carried out with a notary who reads the purchase contract for both parties. For this service, he charges a fee of around 1.5% of the sale price. The entire profession is strictly protected by law and there is no competition.

alphager
33 replies
23h3m

The Notar does much more than just read the contract; he is liable for the correct administration of the transfer of ownership (done by a three phase process which guarantees that the seller cannot get the money without transferring the property and the buyer cannot get the property without selling the money).

The concept of title insurance doesn't exist in Germany as the Notar eliminates the risk.

twixfel
18 replies
22h55m

OK but how is it that other countries get by without them for founding LLCs? Are there countless scams going on in the UK surrounding limited company for example since you don't need a notary there?

There's often lots of post hoc justifications in Germany for "why it is that way" (and has to be that way). But nobody ever seems to stop and think: ok but the rest of the world seems to get by OK without these reams and reams of bullshit?

The problem with Germany is not that it is stuck in the 20th century and completely backwards, but that nobody seems to care that it is. Worse, if anything there seems to be a degree of pride among Germans of the "process". As soon as you criticise some piece of particular bullshit German bureaucracy (as opposed to bureaucracy in general, which generally you're permitted to criticise) then they start circling the wagons (often pointing to other countries where the situation is supposedly the same or worse). So it is never going to change.

freyfogle
15 replies
21h52m

I now have a German GmbH and had a UK Ltd in the past for 10 years. Definitely there is more seriousness/trustworthiness to a GmbH.

I am not sure there are "countless" scams in the UK, but yes, in 10 years of commercial operation did come across a few oddities. Example - a customer (UK Ltd) who declared bankruptcy owing us a money and then then next day founded a new Ltd company and tried to act like he didn't owe us the money because it was a new entity.

See https://en.wikipedia.org/wiki/Pre-packaged_insolvency

I have not come across this kind of thing in Germany.

ProjectArcturis
9 replies
17h15m

a customer (UK Ltd) who declared bankruptcy owing us a money and then then next day founded a new Ltd company and tried to act like he didn't owe us the money because it was a new entity.

That is... how bankruptcy works? He literally didn't owe you money anymore. Obviously you shouldn't extend his new company credit, but extinguishing old debts is the exact purpose of bankruptcy.

theshrike79
6 replies
13h43m

I think the idea here is that you can't just "declare bankruptcy" in Germany, it's a Process with checks and balances.

throw__away7391
3 replies
8h31m

The US concept of bankruptcy is basically unimaginable in most (all?) of Europe.

There's an old movie, The Edukators, where one of the protagonist is effectively broke and working a low wage job but has spent years already and has many years more left to pay off a debt she incurred by accidentally crashing into an expensive car without insurance.

This situation is basically impossible in the US where the term "uncollectible" is used to describe such debts.

Valodim
1 replies
7h45m

I don't know about other countries, but in Germany there is Privatinsolvenz which is a personal bankruptcy that would resolve this exact scenario.

Of course it would first be covered by mandatory insurance you have to have when driving a car (if you're not legally allowed to drive a car, well, you're on your own)

hnbad
0 replies
4h25m

FWIW Privatinsolvenz is not instant although the duration was shortened from the very excessive 7 years down to a more reasonable 3 years. During insolvency you're also prohibited from founding/owning companies or freelancing, though.

theshrike79
0 replies
6h10m

But on the flip side, Breaking Bad would've never happened anywhere in Europe - because "crippling medical debt" just is not a thing =)

redrove
0 replies
11h22m

Your comment is a bit tongue in cheek: it’s a process with checks and balances everywhere in the developed world, and scams aren’t common at all.

You’re insinuating that due to the bureaucracy Germany is somehow better at this; it is not, it’s just more inefficient.

denotational
0 replies
12h4m

It’s a process in the UK too, abuse of which could lead to the courts imposing sanctions ranging from barring the directors from company directorship all the way to piercing the corporate veil and holding directors liable for the company’s debts.

Corporate insolvency requires an “insolvency practitioner” to be appointed by the directors; this is a regulated profession, and this ensures that the company is wound up according to the regulations and statutes.

You cannot just “declare bankruptcy” in the UK either.

imtringued
1 replies
10h23m

Bankruptcy in Germany requires you to attempt to pay off your debts within six years. Any remaining debt gets canceled after those six years pass. This is... not how bankruptcy works in Germany.

For a GmbH and other limited liability companiee there are minimum equity requirements instead.

hnbad
0 replies
4h20m

The duration for private bankruptcy was recently cut to 3 years so it's a bit faster now at least.

For corporations there's an entire process but in simple terms the company is handed over to an externally appointed handler who tries to generate liquidity by selling off all assets and contacting all debtors and creditors. The company might recover through the process (e.g. by finding an investor) but legally the corporation is frozen and substituted by a separate corporation that only exists to resolve its bankruptcy. If the corporation no longer has any assets, it can also be fast-tracked for being dissolved.

rrr_oh_man
2 replies
20h55m

I have not come across this kind of thing in Germany.

Oh, it does exist :)

freyfogle
0 replies
19h32m

Obviously there is fraud everywhere. Still, I have a higher level of basic trust when dealing with a GmbH than someone who created their Ltd Co 3 hours ago. It's just a sign they are a more serious/stable business counter party to deal with.

RamblingCTO
0 replies
11h50m

Yeah! Especially rampant is reusing names of closed GmbHs, reopening them, sending out invoices and stuff like that. Or spamming newly created GmbHs with phantasy invoices. Or the scam that's called Abmahnung by lawyers. There's plenty in Germany, so don't be fooled.

denotational
0 replies
11h44m

How does the involvement of a notary at the time of formation reduce the risk of the company going bankrupt?

Is the notary able to model creditworthiness (i.e. they’re acting as a rating agency), or do they just sniff out “undesirables” by some ad hoc, unregulated process involving their personal judgement, or is it something else entirely?

csomar
0 replies
10h41m

Example - a customer (UK Ltd) who declared bankruptcy owing us a money and then then next day founded a new Ltd company and tried to act like he didn't owe us the money because it was a new entity.

Depends. This can be illegal and he is personally liable for the amount. That being said, he might have done things by the book and his previous venture is bankrupted.

calvinmorrison
0 replies
22h5m

My assumption of the bureaucracy is that it stems out of the German empires professional service

StefanWestfal
6 replies
22h38m

There are ways to ensure the correct transfer of ownership without involving a third party. You can see these principles at work on some trading platforms already, be it for Magic cards or something else where parties cannot trust each other because they do not know each other.

Next, you would expect that the notary would educate participants and act as a source of trust, an actor in your best interest, but that is not the case. Notaries can change contracts until the last minute, and unless agreed upon, the common 14-day withdrawal period for contracts does not apply to things like buying property. Furthermore, if you are inexperienced, you can easily fall into traps.

As a concrete example, when buying a part of a shared property, it is commonly believed that the "Hausordnung" (house rules) is the owners' agreement for house rules. However, that is not the case, as there can be more, and in our case, it forbade us to keep dogs. Now, you could argue that we should have made ourselves more familiar with the law, and I would agree that is true. However, it begs the question, why do we need a notary?

Slartie
4 replies
22h25m

There are ways to ensure the correct transfer of ownership without involving a third party. You can see these principles at work on some trading platforms already, be it for Magic cards or something else where parties cannot trust each other because they do not know each other.

So what else is that "trading platform" then, if not a "third party"?

The way in which this problem is solved is by introducing a third party that is trusted by both, seller and buyer. There's nothing wrong with this principle. What's wrong specifically with regard to notarys as a third party in property sales in Germany is that the amount of work involved in being this third party does not really scale linearly with the value of the thing to be transferred, but the system by which the price of the notaries' work is determined assumes that a property transfer is twice as laborious (and thus must be twice as expensive) if the property is twice as expensive as some other property. Which is BS.

StefanWestfal
3 replies
22h14m

Indeed, my mistake and agree. Here, I wanted to refer to the fact that the transfer of ownership could likely be done even without involving a notary or a human in a properly digitalized system.

nottorp
1 replies
19h25m

Side question: why don't i hear horror stories about identity theft from those areas that have those evil bureaucratic notaries authenticating everything?

Slartie
0 replies
2h26m

Actually there's been at least one known case of someone "stealing" an entire building worth about 6 million € in Berlin. Even bureaucracy and notaries didn't prevent it, so there's your potential 100% fraud prevention rate going down the drain...

Link to an article about this case (in German language, unfortunately): https://www.t-online.de/region/berlin/news/id_91147122/berli...

Slartie
0 replies
22h5m

In that case you have the entity operating and maintaining the "digitalized system" which is the third party that everyone has to trust. And that entity won't do its work for free either. And it also will somehow "involve humans" which are working there.

Oh, and please don't suggest to "simply put it on a blockchain". I don't have the time to explain for the millionth' time why that doesn't work with physical properties. I consider that to be common knowledge among HN users after about 10 years of having those discussions regularly.

Also, property ownership can get ridiculously complex really fast. If just one person owns something, that's simple. But in reality, quite often multiple persons own something together (sometimes some of these persons aren't even humans, but legal entities). In that case there are a gazillion different ways in which such shared ownership can be implemented, with far-reaching implications with regard to what will happen if people disagree, split up, modify or sell the property further down the road. You cannot simply model this complexity with an SQL database because it involves legal contracts that specify the details in which a properties' ownership is shared exactly. And the notary is actually responsible in such a case to write these contracts, ensure that every participant knows about their role and rights within these contracts and isn't shortchanged.

mk89
0 replies
22h4m

However, it begs the question, why do we need a notary?

The way I learnt it, until now, is the following:

the person you are contracting is there to perform a single specific task.

Applied to the specific context: "Notarvertrag", it means:

the notary is there to perform the notarisation (basically to read and write the contract), making legal whatever YOU are asking to do.

Any additional thing:

- you ask him/her

- you ask someone else beforehand (so yes, you need to pay an additional session for help)

And even then, you not always get what you wished for. And when s** happens, .... "that's life experience"....

fl7305
3 replies
22h27m

The concept of title insurance doesn't exist in Germany

(Title insurance is where you must buy insurance when buying a house to guard against the risk that the house may have unknown liabilities or owners)

It doesn't exist in Sweden either, because the ownership of houses is in a central register. You can't make a claim against a house if it is not registered.

Funnily enough, there's no such register for condos in Sweden. So you can end up with a nasty surprise if it turns out you bought a condo that there were unknown bank loans against. But it doesn't happen often enough that there is title insurance against it.

2rsf
1 replies
9h9m

When I asked a real estate agent about buying a condo already owned by another they replied surprisingly "how can it happen? that would be illegal"

fl7305
0 replies
8h14m

:) Yeah, nothing illegal ever happens.

Was this in Sweden? In that case, I have heard of cases where a condo that someone bought had an unknown bank loan taken out against it.

The bank loan is still attached to the condo even if it changes owners. The bank can force you to sell the condo to pay the loan back to the bank.

You can then turn around and sue the previous owner who took out the loan. Good luck with that.

I don't think this happens very often and usually the condo association knows which loans are taken out against which condos.

cess11
0 replies
7h23m

Insurance companies have a similar product though, 'dolda-fel-försäkring'.

I'm not sure what a condo is, but if it's a 'bostadsrätt' then you check with the 'bostadsrättsförening', they're responsible for keeping a register of 'pantsättningar'.

nickff
2 replies
22h55m

From a brief search, title insurance often costs around 0.1% of the purchase price of a property; it seems the Notars are collecting a monopoly rent in Germany.

rad_gruchalski
0 replies
8h29m

They still have to read the deed!

StefanWestfal
0 replies
22h37m

Common in practice is 0.5%

pintxo
8 replies
23h59m

Technically, there is competition. You are free to choose whichever notary you want. But pricing is legally regulated, so you will pay the same price everywhere.

rjzzleep
3 replies
23h22m

The amount of notaries in Germany is very limited. . You can’t just study that and open a notary in Germany. They are cash cows that obviously don’t want competition. During Covid Germany was the only country of its neighbors that did not do remote attestations.

From 2000 to 2020 the number of notaries in Germany had almost halved. How is that normal for any country ? Unless they replaced notaries with automation which Germany didn’t .

pintxo
0 replies
8h50m

Also it seems that 30% loss was mostly in regions not experiencing economic growth. While others actually saw growth in the number of notaries as well.

avar
0 replies
3h47m

    > During Covid Germany was the
    > only country of its neighbors
    > that did not do remote attestations.
Same in the Netherlands.

almostnormal
3 replies
23h17m

The solution is easy: Create a small company to own the property. That company can be sold much more easily than the property itself. It also avoids the tax on propery purchase.

robocat
1 replies
22h36m

Companies have other issues like VAT/GST and reporting. I had a friend use a company in New Zealand and it cost him multiple % of property price due to an issue he didn't forsee.

New Zealand doesn't have notiaries or special insurance but you do need to use a lawyer to transfer ownership and I think it costs about NZD1500 each for vendor and buyer.

pintxo
0 replies
8h55m

Yes, for Germany you can expect at least around 5k/a in costs for accounting, audits etc.

pintxo
0 replies
8h57m

The property tax thing is actually not true. Not if the company only exists to hold properties. The tax office is not that stupid.

morkalork
8 replies
1d1h

Wow and I thought realtors getting a % cut on sales was a scam, at least in NA when you get to the notary, it's a flat fee.

somat
3 replies
21h46m

It sounds like notaries are a different service as well, in the US a notary is a minor(very minor) government official whose primary purpose is to verify that the person signing a document is the person they are claiming to be. For the most part US notaries have little knowledge of the contents of that document.

In California (I think other states, but each state has it's own specific laws) the fees are fixed below a small set amount.

https://www.nationalnotary.org/knowledge-center/about-notari...

morkalork
2 replies
21h33m

At least in Canada, it's not government employees but rather not-quite-a-lawyer types who are glorified ID verifiers.

somat
1 replies
21h23m

I was a but optimistic on my wording, But in the US they are not government employees(they are not paid any sort of salary) just citizens who are authorized to verify signatures(a governmental duty, which is why I called them minor government officials) and are are allowed to collect a small fixed fee for their effort.

hnbad
0 replies
4h11m

FWIW in Germany in order to apply as a notary you have to be a lawyer and the number of notaries is very limited and they're lifetime positions. As with all public officials, there are severe penalties for professional misconduct and losing your lifetime position and benefits is usually enough of an incentive to keep these people honest and careful.

namaria
3 replies
1d1h

In Brazil notaries get a cut of real estate deed transfers, and the position was hereditary until the 1990s.

ProjectArcturis
2 replies
17h13m

In Italy, getting something notarized costs $1-2k. As far as I know, the position is still passed down from parents to children.

morkalork
1 replies
16h43m

Are there other officially hereditary jobs still out there?

piaste
0 replies
8h21m

It's not technically hereditary. But if the job licenses are a finite resource, and the licensee "owns" the license and is allowed to give/sell it to a person of their choice, and the job is reasonably pleasant/profitable... they're very likely to pass it on to their children, unless those children have other plans.

Pharmacies in Italy work much like notaries, although they obviously provide a much more useful service. My understanding is that in part of the US taxis work the same way, with limited # of "medallions" being treated as an investment.

mensetmanusman
0 replies
23h29m

Every word they say is worth about €50 then!

hot_gril
0 replies
17m

This sounds like an escrow.

robert_foss
50 replies
23h38m

Having founded a company in Germany, I would never under any circumstances do it again.

Notaries should not exist, and could be replaced by a simple website.

It's all incredibly tedious and slow, and there are lots of reoccurring work and fees. Closing a company takes 2-3 years too, even if there are no irregularities.

TillE
37 replies
23h33m

Germany loves endless bureaucratic paperwork which absolutely must be done in person (and good luck getting an appointment in Berlin), despite the many years of bleating about Digitalisierung which has apparently amounted to nothing.

robert_foss
33 replies
23h26m

From what I heard the cut the public funding for Digitalization by 90% last year. It truly is like going into a a -20yr time machine living here.

Soon you'll be able to use a credit card in most shops even!

lttlrck
16 replies
22h58m

I moved from the UK to Germany in 1996 and back then the banking & payment was just sooo backwards. Some stores were incredibly anachronistic (Lerche springs to mind - since closed down)

Sorry to hear it's still the same.

mk89
14 replies
22h20m

Germany and "digital" payments have a history due to old reasons.

We don't appreciate its meaning anymore, but cash is literally the only anonymous payment method you can have in this lifetime, and people in Germany tend NOT to trust any entity/company/government holding your data for no particular purpose.

The downside of this is the split brain problem that you have with distributed systems: a state knows something about you that another state maybe doesn't, which leads to "interesting" things like illegal people having multiple identities in several states, etc. Weird s**.

aleph_minus_one
7 replies
20h53m

We don't appreciate its meaning anymore, but cash is literally the only anonymous payment method you can have in this lifetime, and people in Germany tend NOT to trust any entity/company/government holding your data for no particular purpose.

Exactly.

This is the eperience from two dicatorships on German soil in the 20th century of which one ended less than 35 years ago (many of its crimes still have not been prosecuted). There still exist lots of contemporary witnesses who can tell you what being potentially be surveilled means in the day-to-day life.

run414
3 replies
16h25m

Didn't Germany have 3 dictatorships in the 20th century?

East Germany (ended in 1990), Third Reich (ended in 1945), German Monarchy (ended in 1918)

Tainnor
2 replies
12h44m

I'm not used to people calling monarchies dictatorships, even though they are in some ways similar. Until 1918, many states in Europe were monarchies.

cess11
1 replies
7h22m

Calling Saudi Arabia a dictatorship is unfamiliar to you?

Tainnor
0 replies
5h24m

Yes. And in any case, that wasn't the point. I haven't seen anybody refer to pre-WWI European monarchies as "dictatorships".

fabianholzer
1 replies
20h17m

This is the eperience from two dicatorships on German soil in the 20th century of which one ended less than 25 years ago

In comparison to the NSDAP and SED, I think calling the 15 years of CDU government under Helmut Kohl (which actually ended a bit over 25 years ago) a dictatorship is a bit too harsh... /s

aleph_minus_one
0 replies
20h16m

I think calling the 15 years of CDU government under Helmut Kohl

I fixed my mistake. :-)

mk89
0 replies
4h50m

I heard of people being sent ... far away ... just because of jealous neighbors spying on you.

That's some level of f** up.

No wonder that cash is the only accepted payment method in a world that tries at all costs to sneak into your private stuff.

Rinzler89
3 replies
21h28m

N'ah mate, the main reason is tax fraud, not trust in data holding entities, otherwise nobody in Germany would use Google/Instagram/TikTok if they cared so much about their data privacy.

Being free to dodge the tax man is incredibly valuable for small business and individuals in Germany as a lot of wealth is built on tax fraud. That's the kind of privacy people mean.

aleph_minus_one
1 replies
20h57m

N'ah mate, the main reason is tax fraud, not trust in data holding entities, otherwise nobody in Germany would use Google/Instagram/TikTok if they cared so much about their data privacy.

The people who are very vocal about (data) privacy in Germany (which are quite some people, though not all) indeed typically try to avoid such services.

Rinzler89
0 replies
20h54m

There's a difference between "some vocal people" and "the majority of people".

And there's a difference between being vocal and actually walking the walk and doing anything about it.

mk89
0 replies
10h29m

This looks like the typical black or white view about things.

Germany has 80+ million people. Having nobody on Instagram/Tiktok would be unthinkable.

However, historically speaking, this hesitation to have privacy over "convenience" is implemented still everywhere.

You can't just minimize it with "people want to evade tax", although it's also true.

data_maan
1 replies
11h15m

Don't mix cash with digitization. Japan is even more cash.bases than Germany, yet I'd say more advanced in terms of digitization.

samus
0 replies
8h20m

Aren't they still faxing documents all over the place? (AFAIK, you might have to do that from time to time in Germany as well)

mk89
14 replies
22h24m

Soon you'll be able to use a credit card in most shops even!

Not sure where you people live, but this myth has to stop, eventually. I can literally count on one hand the n. of shops NOT accepting cards - it's most of the times shops which, I guess, use cash to have flexibility in their accountings :)

ricc
12 replies
22h4m

“Accepting cards” is not the same as “accepting credit cards” though… A lot of them only accept girocards and not credit cards…

mk89
6 replies
21h56m

I don't have enough experience to speak about CC in Germany, but I don't see why a Rewe or ... boh, Aldi, Mcdonalds, etc should prevent that. I am a bit surprised, to be honest.

ricc
4 replies
21h50m

Big chains and enterprises, for sure. But there’s still a lot of SMBs not accepting credit cards.

mk89
3 replies
21h36m

Are these the same SMBs that ... accept only cash? :) Or do they really exclude CCs?

ricc
2 replies
21h28m

They exclude CCs. They have a card reader but they either have a sign saying, or the vendor will simply say, “keine Kreditkarte”.

4ad
1 replies
21h3m

If you use contactless payments, this is a non-issue, they can't detect it. Although they wish they could.

amaccuish
0 replies
5h43m

So a lot will have in their contract with their processor that they actually can accept Visa/Mastercard, so the sign is there to put you off.

But actually a lot don't, and when you try to pay, even contactless, with a non-Girocard, it won't work.

Visa and Mastercard don't magically let you on their network because you have a card machine.

avar
0 replies
3h43m

Because there's a significant a transaction fee if you're paying by credit card, with cash or debit card there's no transaction fee.

The bigger mystery is why stores in some other countries are happy to have a payment method chosen by the customer eat into their profit.

PurpleRamen
2 replies
21h19m

Debitcards, not girocards. I have no girocard since years, and still can easily pay everywhere. But to be fair, the pandemia really pushed this even the small shops.

addandsubtract
1 replies
19h7m

Ämter only take girocards or cash.

PurpleRamen
0 replies
18h40m

Not true. It probably depends on the location, but last time I paid for a public service, I had no problem using my Visa Debit Card. I think it was not even possible to use cash.

rglullis
1 replies
22h0m

And credit cards in Germany are not "credit" cards as well. At least the one I got from Sparkasse does not let you hold a balance and must be paid in full every month.

ricc
0 replies
21h54m

Not sure about those, but I got mine around 2-3 years ago from gebührenfrei.de, which is from Advanzia Bank. Seems fine so far…with a minor disclaimer that I don’t really use it much. :-)

jmb99
0 replies
11h45m

Admittedly, this was almost a year ago. I found I could pay with credit cards in Berlin, but once I was in smaller areas I was looked at like I was insane if I tried to pay by anything other than cash. Probably didn’t help that my German was terrible.

In particular, I was staying in Nordhausen for work for a couple weeks. The hotel I stayed at tried to refuse to accept that I paid by card online in advance. Every small restaurant I went to refused to accept either a credit or debit card, and only a couple chain (read:overpriced) restaurants would accept Mastercard. When I tried to buy an Ethernet cable at a general store they refused to accept anything other than cash once they realized I was a foreigner.

Maybe it’s a myth in large population centres, but definitely not overall. I had roughly the same experience throughout most of Thuringia, with even gas stations in certain areas only accepting cash.

PurpleRamen
0 replies
21h14m

From what I heard the cut the public funding for Digitalization by 90% last year.

This is basically wrong. They moved the budgets to different departments, where it made more sense. And it actually does move on..slowly. It's basically a living example of too many technical debts and the pains of federalism gone wrong.

Soon you'll be able to use a credit card in most shops even!

Real credit cards are very uncommon in Germany. Debit cards on the other hand are working well everywhere, even in small shops (since the pandemia to be fair).

ricc
1 replies
22h2m

Digitalisierung means one receives a PDF form via email that he should print out, fill out, scan, and then email back again. X-D

DyslexicAtheist
0 replies
21h52m

surely you meant "... and then fax back again. X-D"

?

pgeorgi
0 replies
23h17m

and good luck getting an appointment in Berlin

It's our failed state, so what do you expect?

khaomungai
6 replies
21h50m

Where would you do it then instead?

AndroTux
4 replies
21h43m

Estonia, like stated in the article. As a German founder living in Estonia, I can confirm that the difference in complexity when it comes to founding a company, filing taxes and dealing with bureaucracy isn’t even comparable.

artemonster
3 replies
21h33m

do you know how in such cases salaries works? i.e. founder and employees are german and the company is in Estonia. Do they work as contractors? I thought to be a normal salaried employee you had to have the company also registered in germany too.

AndroTux
2 replies
21h29m

No, you don’t necessarily. Estonia has an e-Residency program targeted exactly at this scenario: Having a company in Estonia but living abroad. However, Germany being Germany, you will still have to deal with the Finanzamt and all the nice stuff that comes with it. So while you can run an Estonian company from Germany and be employed by it, I doubt you will gain much freedom from it. There’s really no escaping German bureaucracy without leaving the country.

miohtama
1 replies
21h4m

In theory, it should be possible for any EU citizen to work in any EU country.

In practice, it is not possible because you need to register to a local tax office of the worker. Spanish employee -> need to register your company with the Spanish tax office.

Good luck unless you can afford expensive legal services that do this for you. Does not make a sense unless you are planning to hire in quantity (>20 workers).

The alternative is that every remote worker is a subcontractor and takes care of their own taxes.

formerly_proven
0 replies
8h22m

The alternative is that every remote worker is a subcontractor and takes care of their own taxes.

In Germany the pension insurance (DRV) will come around after a few years and demand a six digit figure from both your company and the employee, plus interest. You can also end up with criminal charges filed against you.

ascorbic
0 replies
18h51m

In the UK it can all be done online. It costs £12 and the form takes about ten minutes to complete. You'll get your registration within 12 hours. The only complicated bit is if you don't want your home address to be public record and you don't have a physical office you'll need to sign up for a mailing address somewhere. Of course Brexit makes the whole thing less appealing than it used to be.

Propelloni
3 replies
18h19m

I'm not doubting your experience but mine is different. I'm doing business in the Köln/Düsseldorf area and while the experience could be nicer, it is far from terrible. I have been involved in founding five companies (four GmbH and one GmbH & Co. KG) and closing one down in the last 10 years and I would have no qualms to go for another one. Each founding took about 6-8 weeks from first filing to entry into the registry. Getting a VAT ID can take a few weeks longer -- or in one case months longer -- but you can do business with your normal company tax ID and sort it out at the end of the year. If you are really in a hurry, buy a shell company for a few grands plus corpus and you can be running within a week or two. Notaries are really helpful in that case.

From my point of view there are also not many fees and none of them are recurring. IIRC, you have to pay the notary, the registry and the tax office for services rendered. Once you are registered, there are other fees, e.g. IHK (trade association) membership or insurances, but that is not part of the registration, that is cost of doing business.

Liquidation on the other hand takes 12 month (a transitory period required by law) and a few weeks before and after the liquidation for notary appointments. That's it. All in all it took maybe 18 month from decision point to deletion from the registry and the main part of the extra 6 month was deliberation what needed to be done before the transition started.

data_maan
2 replies
11h17m

Can you recommend any company in that area that offers these services to buy a "ready to run" shell company?

Propelloni
0 replies
8h49m

Notaries often have a list of available shells and can set you up quickly. That's what we did, so talk to your notary. Another way is to use a specialized service like [1].

The relevant keywords for research are "Vorratsgesellschaft" or "Mantelgesellschaft". The former are empty companies with no business activity, the latter are older companies with business history but inactive now. Mantelgesellschaften are nice because they bring a credit history along making stuff like leasing easier but cause a little bit more effort at time of purchase.

[1] https://vorratsgesellschaften.dnotv.de/

tnolet
0 replies
7h37m

Founded companie(s) to in NL and DE. It's not so much that there is a notary step, it's just that the DE notary is slow, expensive etc. In NL it takes 30 minutes at a notary (or online) and typically EUR 125 or so. Done.

OtherShrezzing
46 replies
1d1h

Minimum initial share capital of €12,500 to found a company where liability is limited to the firm seems like a very regressive impediment to business. For comparison in the UK, there's a £12 registration fee, and a £1 (one pound) minimum initial share capital. It must put limited liability out of reach of so many people.

jimkoen
25 replies
1d1h

It must put limited liability out of reach of so many people.

That's the entire point. The concept that any idiot can start an LLC with no collateral (which the 25k are) is completely, absolutely, mind bogglingly bonkers to us Germans. Sounds like a scam imo.

OtherShrezzing
9 replies
22h44m

I don't fully understand the comment you've made. Why do you believe it to be bonkers or a scam to allow no-capital limited liability firms?

It effectively puts the entire country into a position where unless a citizen is born relatively wealthy, they have to perform labour for someone else for several years while they save up enough to start their own business. Who does the system benefit? What is it preventing? Why has the sky not fallen in on the UK with a near identical economy, but near-zero cost ltd company startup fees?

amaccuish
4 replies
5h30m

Am lost. I started a business here in Germany as a Kleinunternehmer, cost me 30 EUR. GmbH is not the only form available.

avar
3 replies
3h34m

This thread is discussing limited-liability companies. You're personally liable for that Kleinunternehmer, in Germany your only option is a GmbH.

amaccuish
2 replies
3h26m

I'm responding to the parent "It effectively puts the entire country into a position where unless a citizen is born relatively wealthy..."

Sure the thread is about limited-liability, but parent argues as if non-wealthy people can't form businesses, which is not true.

avar
1 replies
3h19m

I see, I think it's implied there that if you're not wealthy then forming a business while assuming all the liability of the business is an equally or larger moat to cross for the poor.

It means that as soon as you screw something up or just get unlucky you might not only lose your business, but your personal savings, house etc.

OtherShrezzing
0 replies
11m

You're correct, this is the opinion I was trying to get across in my original comment about the inequity in the German system relating to limited liability firms.

jimkoen
1 replies
20h33m

It effectively puts the entire country into a position where unless a citizen is born relatively wealthy, they have to perform labour for someone else for several years while they save up enough to start their own business.

Yup that's pretty much the idea. If you think that's unfair, oh boy, wait until you hear about our infamous trade schools and apprenticeships.

Though you're right, incorporation doesn't shield from scammers. We as a nation fell for Wirecard after all.

data_maan
0 replies
10h53m

If you think that's unfair, oh boy, wait until you hear about our infamous trade schools and apprenticeships.

Got any stories to tell? ;)

badpun
1 replies
22h25m

There are plenty of other forms of companies than LLC which people can use.

With an LLC, the company is only liable with the capital that it has, and if it has none, then it can scam people with impunity (there can be criminal charges if there's outright fraud, but you won't win any money in a civil case against a company that scammed you, if the company has no money).

zeroCalories
0 replies
22h4m

Don't know how it works in the UK/Germany, but an LLC isn't a complete shield against liability. If you're scamming people or acting recklessly you could easily find your personal assets targeted by a judge.

fl7305
6 replies
22h25m

The concept that any idiot can start an LLC with no collateral (which the 25k are) is completely, absolutely, mind bogglingly bonkers to us Germans.

Uhh, what? Have you never heard of UGs? That is, 1 Euro GmbHs.

jimkoen
5 replies
20h43m

No it's not. With UG's limited liability is only extended to the collateral put in, meaning that as soon as someone sues you for 2€, suddenly you're liable with your private wealth. A GmbH is a true shield against that, you can be sued for millions and are shielded behind the 25k collateral.

fl7305
2 replies
19h16m

That sounds unlike anything I've ever read about it? Where have you seen this?

Here is the law that regulates GmbHs, with the paragraph specific to UGs:

https://www.gesetze-im-internet.de/gmbhg/__5a.html

Where in the GmbH-law do you find anything to support your claim?

jimkoen
1 replies
9h57m

My understanding was so far, that if the initial Stammkapital for an UG is too low, it then is seen under constant thread of insolvency under the law. Meaning that you're effectively always delaying insolvency, which is a crime. So if you then actually go bankrupt, assuming you're both Gesellschafter and Geschäftsführer, you're pretty much guaranteed to be convicted.

Though I have to admit this was 10 years ago when I looked into it. I remember there being a lot of fearmongering around starting an UG back then.

fl7305
0 replies
8h22m

I'm not an expert, especially not on the German law. But here's my understanding:

If a UG with 1 euro in share capital has a large equity, low expenses, and is run prudently, then I don't think the CEO/shareholders are personally liable if the UG is sued for a million euros and must pay that?

Both a GmbH and a UG have a "share capital" (Stammkapital). It is at least 25 000 euros for a GmbH, and 1 euro for a UG. On day 1, this is also the equity (Eigenkapital).

If the company makes profits, that will increase the equity. The equity makes it possible to keep spending money for a while even if the cash flow is negative. A 1 euro UG can in theory have 1 million euros in equity.

In both cases, the CEO is legally obligated to start insolvency proceedings immediately if it looks like the company can't pay its bills or loans any more. This is also required if the equity goes below half the share capital (same as in Sweden, "kontrollbalansräkning").

if the initial Stammkapital for an UG is too low, it then is seen under constant thread of insolvency under the law

I don't think it's that simple? To begin with, it's the equity and the cash flow that matters, not just the Stammkapital (share capital) by itself. A UG can start out with a very low share capital, but if it has no expenses and a positive cash flow, then insolvency is not a risk, right?

If the cash flow suddenly becomes negative, for instance by losing a big client, or the main product suddenly can't be sold any more, then even a GmbH can be under immediate threat of insolvency. The 25 000 euro in share capital is nothing compared to salaries for a bunch of people, plus an office lease agreement that runs for another couple of years, etc.

So if you're operating a GmbH with employees and an office, then I'd say that it can be "seen under constant threat of insolvency" if it only has the share capital available as equity (or worse, just half of it), and the future income is very uncertain. So both a GmbH and a UG can put the CEO in jail if he plays it fast and loose.

I can definitely see how it is easier for a UG to get into insolvency territory, and above all, people running UGs aren't as familiar with the rules and pitfalls.

I could be wrong on some things? I'm interested to learn more in that case.

farbklang
1 replies
15h0m

This is wrong. The UG offers the same protection as the GmbH. It's probably less trusted.

Funfact: you should always use the full title, Companyname UG (haftungsbeschränkt) on all communications and contracts. Emitting the 'haftungsbeschränkt' or shortening it 'haftungsb.' may make you as a CEO personally liable for damages occured.

yieldcrv
2 replies
23h22m

why is there an assumption that people starting an LLC in Germany not an idiot?

no wonder you guys fell for Wirecard

good thing the EU/Eurozone/EFTA/EEA lets anyone do business with a business entity registered in any member state and accept SEPA in any regional currency

so some microstate with competitive laws and more egalitarian access can circumvent Germany’s exclusionary hurdles

jimkoen
1 replies
20h42m

I'm not saying it's great, it's just that German culture has no place for no collateral LLC's. We don't do this here, our business culture is much closer to medieval trade guilds still, rather than a modern globalized economy.

yieldcrv
0 replies
20h35m

I really get tired of the old world bullshit, especially regarding share capital. It seems it was more useful as a form of Proof of Stake to support old isolated currencies that doesn't have much relevancy in a monetary union.

But I'm glad Luxembourgh, Estonia and others do things that mirror new world novelties, while remaining easier to bank in the EU with than non-EU entities, and look familiar to EU residents.

NoboruWataya
2 replies
21h59m

I have a hard time believing there are many scams that have succeeded specifically because the scammer was permitted to set up an LLC with nominal share capital (at least in the last few decades). In the business world it is pretty standard to do due diligence and get collateral for any material exposure to an LLC. So the people who would be taken in would mainly be the vulnerable and uneducated who could likely be scammed without an LLC. There are additional protections against scams via various laws relating to bankruptcy, creditor protection and "piercing the corporate veil" (https://en.wikipedia.org/wiki/Piercing_the_corporate_veil).

Not to mention that the minimum capital requirement is unlikely to deter any determined scammer. All you're really doing is making life slightly difficult for scammers who can't scrape together €12.5k in capital, while simultaneously also making life hard for all the legitimate contractors and (would-be) entrepreneurs who can't scrape together that amount.

jimkoen
1 replies
20h35m

If you read the German version of the Wikipedia article you linked, you'll find that this concept is rarely, and I mean _rarely_ applied by courts. It is also case law, which is exceedingly rare in German law. You're going to have a hard time arguing for it's application in court.

Regardless, most laws around incorporation in Germany are a deterrent to any founder, I agree, but I honestly think we don't want this as a society. German culture is about work, and working for _someone_, not starting your own business.

I agree it could, and should be easier, at the same time you won't change a system that evolved from medieval trade guilds.

data_maan
0 replies
10h48m

German culture is about work, and working for _someone_, not starting your own business.

I wonder how Germany will survive the 21st century, where a key part is to make/capture a market first by some innovation that comes out of some startup scene (Silicon Valley most prominently) and push out all the other players.

German's in tech spheres keep complaining that they are being "ripped of" by the Anglo-Saxon space, but it seems to me it's actually their own mentality that is holding them back.

And of course everyone knows the story about the mp3 format, apparently invented in Germany and monetized in the US

mac-mc
0 replies
23h10m

Companies are the legal ownership equivalents of shipping containers, and enabled a revolution in humanity despite being so simple, much like shipping containers. There is something up with your laws if that is not what they effectively act as to need collateral like that.

blackhawkC17
0 replies
22h33m

If we follow your logic, only the rich will be able to create LLCs then..

davidw
5 replies
1d1h

It's extremely regressive. I started an effort to reform things in Italy and... it kinda sorta got some actual results, although not quite as much as I'd hoped

https://blog.therealitaly.com/2015/04/16/fixing-italy-a-litt...

How many days of wages is 12,500 for the average worker? In the US, even for someone making minimum wage, you could pretty quickly cover the costs of forming an LLC, let alone someone making more.

manuelmoreale
4 replies
1d1h

Isn’t that already an option in Italy with the SRL Semplificata and initial capital starting at 1€?

davidw
1 replies
23h22m

Yes, I lit the fuse on that. I took a look at your site and the first thing I saw was about a guy who lives here in Bend, Oregon, where we moved from Padova. Small world!

manuelmoreale
0 replies
12h6m

Ah that’s quite a neat coincidence!

_dain_
1 replies
23h58m

I think that guy's campaign is what resulted in SRL Semplificata in the first place

davidw
0 replies
23h42m

Yes, that's correct. Other people did the real, heavy lifting to get things done, but my idea caught their attention.

data_maan
5 replies
10h55m

Reading a lot on Germany business culture, my takeaway is that Germany is not made for lean founders who start small but aim big, i.e. your typical startup.

It seems to be aimed either at well established business magnates who want to open yet another business (and 25k€ is nothing in that case) or small bakery-on-the-corner businesses who will go for GmbH anyways (and hence no reason to cough up 25k€).

There's no path that explicitly caters to the tech founder.

Someone correct me if I'm wrong.

martin_a
3 replies
8h47m

Start with a "Einzelunternehmung". Registering that takes 15 to 30 minutes at your local mayors office and costs 30 Euro. From there on you can make something like 20k Euro turnover per year, if you grow out of that, you can still "invest" in a GmbH or whatever suits your needs best.

On the other hand, if you are sure that you're building the next Facebook, getting the money for a GmbH together on day -1 should be no problem at all. It turns out that most companies don't make it that far, though...

welterde
1 replies
8h22m

That 22k limit is only for the small business rule, which allows the choice of not collecting VAT on sales (but on the flip side cannot deduct it on purchases). Up to a yearly revenue of 0.6M one can also use a simplified profit calculation method for taxes.

martin_a
0 replies
7h50m

Ah yes, you're right. I'm still not that settled in on the rules... :-D

data_maan
0 replies
4h3m

Still suboptimal to have to iterate between business types as I grow (compared to other jurisdictions).

This "slow grow" mindset is so typical German. No one know who the next Facebook/Meta will be - but I would guess for some VCs (not all though) it helps to show you're not some random sole trader

welterde
0 replies
8h31m

There are 2M sole proprietorships in Germany and around 0.4M partnership type companies (Personengesellschaft; GbR, etc.) and aside from the aspect of trying to appear like a large corporation while actually being a small start-up, they are perfectly adequate for many businesses.

There is also no limit on how large a sole proprietorship can grow. While mostly held up as example for why one might not want to keep the company form a sole proprietorship forever, Schlecker scaled from a single shop to over 14000 stores near the end and a couple billion euro revenue per year.

ofrzeta
4 replies
1d

Since 2008 you can found a "UG" ("Mini GmbH") that doesn't require that much upfront capital. It can be foundet with 1 Euro. The catch is that you need use 25% of your yearly revenue until you reached the 25k of a proper GmbH.

https://www.firma.de/en/company-formation/what-is-a-ug-haftu...

Hrun0
1 replies
13h25m

The registration at the notary alone already costs several hundred euros, you would be immediately bankrupt with 1€.

jillesvangurp
0 replies
10h54m

Exactly, there's the notary cost, the monthly banking fees, the yearly books closing and accounting related to that, chamber of commerce registration (recurring yearly as well). You also need to have a mailbox somewhere to be able to receive all the paper work. You can use your home address but it's generally not recommended and frowned upon by land lords.

In my case, I burned through about 2500 euro in the first year just on stuff like that for a holding company that holds shares in my actual company. It takes about 4-5 months to get most of that behind you. Yearly running cost are about 1000 euro (accounting, recurring fees, etc.).

pgeorgi
0 replies
23h14m

correction: 25% of the yearly profit

pantalaimon
0 replies
21h59m

The catch is also that everyone can see that you have less than 25k € in funds, so depending on what your customers are, they might not take you serious.

intelVISA
1 replies
1d1h

Is running under a limited enough to limit liability? I'm no lawyer but thought you'd have to establish all the corporate infra (bank, tools, etc) to avoid piercing the veil in your daily ops.

multjoy
0 replies
22h34m

Yes. The corporate veil isn't a literal one - you own the company in your real name, registered to your real address, but the company is the entity that is at risk from legal action unless you've explicitly offered a personal guarantee.

Ekaros
0 replies
21h17m

Depends if this can be spend. On things like equipment, services and wages and so on. It is not actually that much money as runaway for most fields.

SeanLuke
34 replies
5h35m

For those of you griping about German bureaucracy I urge you to come to Italy to learn just how good you have it.

My wife is Italian and wanted to get married in her small home town. In order for her to get married to an American in her home town required paperwork that bordered on the Kafkaesque. We had to show up at the Italian embassy in Washington DC (fortunately we live there!) with proof and witnesses that I was not already married, plus another ten pages of forms. We had multiple stages of notorization. And we had to have forms signed by other witnesses vouching for the truthfulness of our witnesses. In Italy we had to draw up a long declaration of vows in italian -- in Italy, a wedding is a contract -- and then even though I wrote the vows myself in Italian, just because I am American we had to have it translated by someone else back into English, by hand, just so I understood the vows I had myself written. We then had to contract someone to read the vows out loud in English at the ceremony so I understood my own words.

At every step on the way, the bureaucrats apologized for the bureaucracy and asked us the same question, over and over and over again: "Why don't you just get married in the US?"

Don't get me started on the *hilarious* complexity of getting a Permesso di Soggiorno (sort of an Italian Green Card) this year. I applied this past July and there are still more steps to do.

miracle2k
11 replies
4h40m

It's actually somewhat similar in Germany. You need a Ehefähigkeitszeugnis, essentially that document proving that you are not married yet. You would have needed to get this from the US.

Because most countries don't have that sort of document (including the US), you then instead need to apply to your local Oberlandesgericht (Higher Regional Court) for an exemption.

All the way, any foreign government documents need to be notorized by the German embassy in that country.

AmericanChopper
8 replies
4h25m

Because most countries don't have that sort of document (including the US)

They don’t? I thought this was a pretty standard sort of document to get…

hobs
5 replies
4h21m

It is, the GP is wrong, its called a Statement Of No Marriage, many states can provide this.

BytesAndGears
2 replies
2h12m

No, I had to do this when I moved to Europe with my non-married fiancee.

Some states can give you a statement saying "This person never has gotten married in our state", but they cannot pull the records of every state. In fact, the state that I was living in could not even do that -- only individual counties could pull records saying "This person did not have a wedding within this county". There are no central records.

When I tried to use that as a record of non-marriage, it was not accepted for the above reasons. My fiancee and I needed to give a signed oath to a notary that we were not married, and take that document to the state's office to be apostilled.

hobs
1 replies
17m

Well, if they want a federal document that makes sense, and yeah I don't think the fed issues that, we're too stratified so there's no such thing as a federal marriage license afaik.

dragonwriter
0 replies
7m

I think the real issue is that what they want is a document that the person is not married. A state document might work if states required and tracked documentation for out-of-state marriages of residents, and could confirm that the person was a resident who would be subject to that requirement and was not, per records, married, whereas what the documents offer is documentation that an event did not occur within the state, not the absence of the condition of being married.

pc86
0 replies
3h41m

I can't speak to whether that would qualify in Germany, but it seems like it'd be pretty easy to establish residency in some state for the explicit purposes of getting one of these if you were committed to this for some sort of scam or something.

miracle2k
0 replies
2h19m

I am seeing different things online about this, de.usembassy.gov says "no such government issued document exists in the United States", but maybe they are referring to the federal government.

In any case it say that since 2021 Germany will accept a sworn oath from US residents to declare their eligibility.

flypaca
1 replies
3h9m

Yes, it is. Usually, a certificate that says, "No record of marriage of this person in this county". Though, there is still a step to apostille and translate it to German for German cities to use it.

miracle2k
0 replies
2h16m

I don't know how common it is, but this is a page of the Stuttgart court:

https://oberlandesgericht-stuttgart.justiz-bw.de/pb/,Lde/Sta...

- Countries without a link they have no info

- Countries with a link, but are cursive, generally provide the certificate in most cases (this seems to be broken, I see no cursive ones, but the UK is among this group, which one can see when opening the link; but that seems to be the minority).

- All others they seem to suggest need to go through the exemption process.

omginternets
0 replies
15m

How does one prove one isn’t married? Is it a sworn statement, or is there something else?

folmar
0 replies
3h17m

Virtually all common law countries provide this easily, and civil law countries provide a slightly different worded document of similar usage, i.e. a certificate of being eligible to marry under your country law. In most cases they are treated as equal once you have them, although the procedures and conditions vary.

pavel_lishin
8 replies
5h18m

then even though I wrote the vows myself in Italian, just because I am American we had to have it translated by someone else back into English, by hand, just so I understood the vows I had myself written. We then had to contract someone to read the vows out loud in English at the ceremony so I understood my own words.

I badly want to learn the historical reason for this insistence that non-Italian-speaking foreigners must understand the contract they're entering into. They wouldn't put up these hoops to jump through unless someone's gotten badly burned in the past, right?

kome
3 replies
4h15m

In Hungarian courts a contract that you cannot read is invalid, or at least, highly contestable in court. So translations are needed. I guess it must be the same in many other jurisdictions.

psychlops
1 replies
2h14m

This would support the counterparty requiring a translation, but doesn't explain why the bureaucracy would need it.

londons_explore
0 replies
1h42m

because the bureaucracy also cares that the contract is valid.

There are probably all kinds of tricks you could pull by being married for a bit, then declaring the marriage false all along, but not going through the official divorce process.

biztos
0 replies
3h50m

I can confirm this, when dealing with a Hungarian court I was asked repeatedly whether I understood what was going on and what exactly I was agreeing to. I did, but it was good of them to check.

Swizec
2 replies
3h37m

I badly want to learn the historical reason for this insistence that non-Italian-speaking foreigners must understand the contract they're entering into. They wouldn't put up these hoops to jump through unless someone's gotten badly burned in the past, right?

Turn the situation around. Rich Italian imports wife from poor country, … easy to imagine how that can lead to all sorts of bad situations. It’s one of the ways human trafficking for prostitution happens.

gspetr
1 replies
2h3m

I don't know if that makes a significant difference for that purpose.

It's not like places where weddings take place are conspicuous enough that you couldn't tell the difference between them and a normal govt agency, and it's not like people don't know it is a very bad idea to sign documents where they do not even understand a single word.

The paper trail of a vanilla (let alone international) marriage is already big enough that I doubt criminals would want that, unless they have corrupt officials assisting them, which is a problem these measures do not address.

Swizec
0 replies
1h42m

it's not like people don't know it is a very bad idea to sign documents where they do not even understand a single word

The laws are there for people who may feel like they don’t have much choice in the matter. And yes lying to officials that you did in fact have a choice and are totally doing this of your own free will and yes of course you understand the document you’re signing is a big part of it.

This is similar to how some pregnancy related health clinics have things like “Sign the sample cup with blue pen if all good, use the red pen if you’re being forced to be here”

dfxm12
0 replies
1h50m

Since OP can seemingly already write Italian, cynically, this seems like an effort on Italy's part to keep some foreigners out. Although I can also see how it could have come about with good intentions to protect all parties involved. IANAIL, but by making sure everyone understands a contract right before they sign it, you might save the courts some headache later. It also gives an easy job to a translator.

thaumasiotes
3 replies
5h3m

and then even though I wrote the vows myself in Italian, just because I am American we had to have it translated by someone else back into English, by hand, just so I understood the vows I had myself written.

Are you a native Italian speaker? If not, this makes perfect sense. It is routine for someone to attempt to say one thing in a foreign language while actually saying something completely different.

Aeolun
1 replies
4h35m

Marriage generally has a fixed definition by law, anything else would be madness.

The vows shouldn’t matter.

harperlee
0 replies
3h18m

Not italian and not a lawyer, but I can see how specific declarations made to another party in front of hundreds of witnesses, in the framework of entering a broader agreement with said party, could be argued as a verbal supplementary contract in case of future disputes!

hackeraccount
0 replies
4h42m

What the difference between a solution and an elegant solution. A solution will fix the problem even if that means creating another problem. An elegant solution fixes the problem without creating another problem.

I can see how a non-native speaker might get themselves in trouble. I admit I have no idea what the correct solution is but I don't think this is it.

underdeserver
2 replies
4h1m

But why didn't you just get legally married in the US (and have a faux celebration in her home town)?

SeanLuke
1 replies
3h57m

You've not dated an Italian, have you. :-)

underdeserver
0 replies
1h34m

I haven't had the pleasure, no, please say more :)

willcipriano
0 replies
5h3m

The US portion of that is the same if you get married in Greece. I'd guess it's the same everywhere.

Had to get my Greek marriage documents translated as well.

johnzim
0 replies
1h13m

I lived this as an Italian trying to do the same for an American wife.

I had already steeled myself for the experience but it was still mind-numbing, until the appearance of one glorious stroke of luck.

The official in our consulate had incurred some minor peccadillo in the filling out of a form - their stamp was in the wrong part of the document, and because of that, their counterpart in Roma had officiously refused the document.

Suddenly, what had been a grinding war of attrition between us and the establishment, turned into a civil war within the machine. A principal adversary had flipped to our side.

We had serious firepower and the rest of the process was made incredibly easy, as our slighted new friend slashed through the red-tape and bulldozed our application through.

It ended with the final document being stamped at least a dozen times out of spite. I wish I had that copy (it probably rests in an aging manila envelope in the comune somewhere.)

gspetr
0 replies
2h11m

in Italy, a wedding is a contract

Last time I checked it is a contract just about anywhere, including the United States. Marriage rights are primarily property rights. (or "liabilities", ask any divorce lawyer).

foepys
0 replies
5h18m

Quite a few EU citizens travel to Denmark nowadays to get married to foreign nationals. Much less complicated and since Denmark is in the EU they won't have any problems to get it recognized in their home country.

f1shy
0 replies
2h1m

Knowing both Italy and Germany, they are 2 different things: Italy is messy, Germany bureaucratic. Both are bad. But the fact that Italy is “known” to be messy, and Germany “known” to be “efficient” is what is perplexing.

Germany is the hell if bureaucracy, and is getting messy.

LtWorf
0 replies
32m

All my italian friends who moved to Germany tell me that in Italy it's much easier than germany. Just FYI

hnhg
25 replies
22h27m

There is also a brutal and inflexible exit tax. Should you decide to leave Germany, even temporarily, you will be faced with a tax of ~30% of the current valuation of your worldwide shareholdings (in companies in which you have >1% ownership). I commented on this in more detail in another post a while back:

https://news.ycombinator.com/item?id=39786934#39788110

In the author's case, because he is using a holding company, his exit tax burden will be doubled!

toast0
14 replies
22h8m

From the article you linked in that comment[1], it seems like this exit tax only applied to companies where you own 1% or more? and it's structured as the capital gains tax, but due now, so on the current value minus your cost basis.

The US has an exit tax if you renounce citizenship, and it's assessed on your entire net worth. If the article you linked is accurate, this german tax seems much more reasonable.

EDIT: actually, I reviewed, and I think it's broadly similar --- treat all assets as if sold at market value on the date of exit. Thus, any deferred taxes from unrealized capital gains need to be paid when you exit the taxing jurisdiction. Although, again, if the linked article is correct, it only happens to assets where you own >= 1% of the company when exiting Germany, and all capital assets if you qualify in the US.

[1] https://www.winheller.com/en/tax-law-tax-advisory/internatio...

klohto
8 replies
22h2m

how are you comparing renouncing citizenship with temporarily leaving the country

pests
5 replies
21h55m

I think the wording was unclear as that's what I thought too, that "leaving" meant for good, and maybe there was a way back - hence the temporary part.

A tax on simply exiting the country is a very foreign concept to Americans I would assume.

freyfogle
4 replies
21h40m

Hah! Americans have to file US tax whether they live in the US or not.

pests
3 replies
20h11m

Only for higher income individuals. We get a Foreign Tax Credit for taxes already paid where we live/work.

Looks like the limit last year was $120k. Only 17% of Americans make more than $100k/year. Only ~5million Americans living abroad, or 1.5% of the population.

I'm sure those numbers are correlated, but I'll bet its under a few hundred thousand of people who are burdened with the tax. Even then, the benefits also are pretty nice.

freyfogle
0 replies
19h23m

As someone who is burdened with several thousands in filing costs every year (not tax, I mean the cost of paying an accountant to deal with the filing, which is required for all US citizens), because I have a non-US business, please fill me in on the benefits.

Also more and more non-US banks won't take US citizens as customers because they don't want to deal with the US's FATCA requirements.

No other developed country has these sorts of requirements for non-resident citizens.

akvadrako
0 replies
19h33m

No, all Americans who make money abroad have to file taxes. Yes, there is the Credit and the Exclusion, which will often reduce your burden to often zero but still requires all the paperwork.

Try owning a stake in a foreign company (CFC) though, that's a nightmare with often unavoidable significant taxes.

EVa5I7bHFq9mnYK
0 replies
16h24m

Most are burdened not so much by the tax itself , but by the complex and costly tax report that should be filed every year.

toast0
1 replies
21h55m

I'm comparing 'exit taxes'. But also if you leave Germany, you're no longer subject to German income tax, and you have to both leave the US and renounce citizenship to become no longer subject to US income tax.

hnhg
0 replies
21h50m

I updated my comment to improve its clarity. I can see how it was unclear to you.

DyslexicAtheist
2 replies
21h48m

isn't comparing it to an even worse jurisdiction like US a bit unfair? why not compare it to other EU countries or even Asia. I'm not a US citizen but being taxed on my global income would be a pretty strong reason to renounce my citizenship.

robocat
0 replies
11h32m

strong reason

But not allowed!

"If the Department of Homeland Security determines that the renunciation is motivated by tax avoidance purposes, the individual will be found inadmissible to the United States under Section 212(a)(10)(E) of the Immigration and Nationality Act"

presentation
0 replies
13h9m

For what it's worth Japan also has a nasty exit tax.

ccozan
1 replies
20h5m

This rule has been changed in 2006, see the wikipedia entry. Also the double tax rule allows you to tax the win in the target country and not Germany.

hnhg
0 replies
11h5m

It was also changed in 2021, and subsequent rulings that affect it earlier this year. The Wikipedia article is out of touch with more recent developments.

_Microft
3 replies
22h15m

If this reply [0] to a comment of yours is true, then you’re allowed to „temporarily“ leave Germany for 7-12 years before being affected by this.

[0] https://news.ycombinator.com/item?id=39790138

hnhg
2 replies
22h13m

I answered later in the thread: "Unfortunately, so far that deferral will most likely come with the requirement for a security, typically cash. That is the prevailing view of tax specialists right now, but will depend on each individual's experience with their local tax authorities."

Sadly, you cannot just leave and think it would be automatically deferred. You must apply for the deferral before you leave and the local tax authorities can ask for a security in cash for the entire amount owed. It is absolutely kafkaesque.

As with many German corporate tax matters, if you think you are affected by this, you should really speak with a tax advisor who has strong experience working with people in your particular situation. You cannot just read the rules and figure it out.

_Microft
1 replies
21h22m

What would prevent anyone making off with the money owed if they didn‘t require that?

hnhg
0 replies
11h0m

It depends where you go. I believe (but could be mistaken) that there are agreements between countries, especially within the EU, that enable them to go after you. I am also not sure what the statute of limitations is regarding tax-related crimes. But it could be a valid strategy, I guess!

hnhg
1 replies
11h6m

That is an understandable but incorrect conclusion. That should be the case, especially with freedom of movement within the EU, but the German tax authorities are essentially violating those agreements (which will inevitably get challenged in the law courts, but that will take some years). As I said elsewhere, please consult an experienced tax advisor for your particular circumstances as you cannot just figure this out for yourself, unfortunately.

personomas
0 replies
5h49m

Do you have any sources? So I can do further research.

hnhg
0 replies
10h37m

The issue is with the requirement of a security. Winheller do phrase it carefully as "in their view" a security is not required, but that would have to be agreed with the tax authorities in advance and there are different opinions on how likely this is without a firm legal ruling from the law courts.

(What I find concerning is the attitude of the German tax authorities in their continual attempts to strengthen and increase the scope of this law. They are always trying to broaden it leaving it to individuals and the courts to push back on them.)

csomar
0 replies
10h24m

This is the new modern version of the Berlin wall; trying to hold hostage the productive tax payers because you can't create or attract new ones. It didn't work for the Soviet Union and it's not going to work for Germany.

RicoElectrico
20 replies
1d1h

I wonder: why EU did not try to somewhat harmonize company law? I can understand that things like tax code, penal code would not benefit from unification across disparate societies, but companies seem like a ripe target. This should have begun 20 or so years ago.

throwaway11460
11 replies
1d1h

Given the domination of Germany and France in EU, thank the universe it didn't.

Signed, a citizen of an EU state where you can create a company by digitally signing one form and paying the equivalent of $300.

qayxc
3 replies
21h42m

Signed, a citizen of an EU state where you can create a company by digitally signing one form and paying the equivalent of $300.

You'd be surprised to hear that you can do that in Germany, too. Costs about 25€ (depends on the municipality) and takes about 30min.

The blog post was referring to a very specific form of incorporation. There's not just the ones mentioned in there.

throwaway11460
2 replies
17h32m

So a normal GmbH, which would be the equivalent of what I'm talking about, can be incorporated online for 25 EUR in 30 minutes?

I thought that's what the article is about. What's so specific about the form of incorporation they are talking about? A limited liability company is the most basic form of a corporation...

Sole proprietorship / self-employment can be started here for around 20 EUR too, but that's not a company. Or does Germany have some other forms of companies that I don't know?

qayxc
1 replies
12h23m

Or does Germany have some other forms of companies that I don't know?

There are 9 forms of companies in Germany, only two of which (GmbH and AG [stock corporation/PLC/...]) require fixed capital and a notary.

throwaway11460
0 replies
10h48m

There are many more in my country too, but they don't offer the liability protection and legal personality that is usually expected of "a company". What other kind of corporation could be used in Germany to do the job of a limited liability company?

seszett
2 replies
23h32m

It's about the same in France by the way, except that it's free.

throwaway11460
1 replies
23h17m

Cool! My bad assuming without checking.

realusername
0 replies
23h12m

France is much more digitalized compared to Germany, you can't really put them in the same basket.

The issue on the French side is more that they put the exact same excruciating procedures they had in paper online and didn't simplify too much in the process.

_a_a_a_
1 replies
1d

Create a company, or do you mean buy it 'off the shelf'?

throwaway11460
0 replies
23h35m

I mean incorporation of a new company.

ascorbic
0 replies
18h10m

What they should actually do is allow anybody to register a company in any EU state and then operate in any other. Then the member states would have to compete, and Estonia would be the European Delaware. This may be theoretically possible now, but practically it's not so easy.

yau8edq12i
3 replies
1d

Even the USA does not have harmonized company law. Pretty much anything except what concerns the IRS says is in the hand of the individual states. Why would you expect the EU to do so?

philwelch
2 replies
21h54m

Someone in the US can start a Delaware LLC or C corporation without living in Delaware. Can someone living in Germany set up an LLC or corporation in Denmark or Estonia instead of Germany?

tut-urut-utut
0 replies
21h29m

Yes, but they would still be a subject of German taxation, which is ridiculously complex and expensive compared to Delaware LLC or an Estonian company run by a person not living in Germany.

qayxc
0 replies
21h41m

Yes they can. In fact, until about 15 years ago, it was common practise in Germany to found an LLC in the UK and convert it into a GmbH only after it grew big and profitable enough to warrant the effort.

lutoma
0 replies
22h30m

They did try. There's the Societas Europaea, a standardized type of corporation largely governed by EU law. It's primarily used by large multinational companies (Think BASF, SAP, Airbus): https://en.wikipedia.org/wiki/Societas_Europaea

That was part of a push to introduce standardized EU-wide legal forms for other types of businesses as well, but the process stalled and never really went anywhere after that.

cladopa
0 replies
23h4m

"Harmonizing" is a great name for "absent of competition" or "collusion to raise taxes" and it is the worse thing that could happen to Europe.

Rutjjt
0 replies
22h15m

Why? It would export German "efficiency" into other states.

NoboruWataya
0 replies
21h22m

Others have mentioned the Societas Europea, which I think is the correct way to do this--provide an option to use a pan-EU legal form. The other way--mandatorily replacing member states' legal forms with one or more pan-EU forms--would simply be too disruptive. You'd be forcing hundreds of thousands, if not millions, of companies to change their legal form. Even if you tried to make the conversion process automatic, there's no one-size-fits-all approach to converting every company that won't end up with some companies automatically adopting constitutions that don't make sense (for example).

Some particular aspects of company law are partially harmonised at EU level, for example insolvency law. But that's mostly about ensuring that cross-border insolvencies don't become hopelessly complicated and bogged down through parallel proceedings.

fl7305
19 replies
1d2h

What does the opposite look like in Germany? Meaning, shutting down a Gmbh?

In Sweden, you can get this done in a matter of days, where you sell the shares of your corporation for the net value minus a fee of about $1000.

jFriedensreich
18 replies
1d2h

its one to 2 years of pain. my gmbh shut down also cost 15 000 and ultimately led to me leaving the country.

leononame
7 replies
1d1h

Ugh, tell me about it. I'm in the process of closing one and have been for 1.5 years now. I think we're close, but who knows. I certainly don't

fl7305
6 replies
23h44m

In Sweden you can sell your company to a specialized company that will dissolve it for you (for example this one: https://www.standardbolag.com/services/liquidation). This can be done in a matter of 1-2 weeks.

In Sweden, you can of course also choose to dissolve it yourself, but nobody does that since it takes years, and it's pretty cheap to let someone else take care of it for you.

It sounds like the same service is not available on the market in Germany?

globalise83
3 replies
19h55m

If not, my next question would be: what kind of process do you need to go through to sell a company in Germany? :)

jFriedensreich
1 replies
19h9m

afaik there is no formalized process to sell for winding down a company in germany as in sweden, though some attorneys offer a service to connect with some clients that want to start a company and try to do a swap, which is legally a grey area. I did that also once but it was a nightmare in a differnt way and took not much less time and energy. I am sure you can be lucky there if the timing is right and the people taking over are not complete idiots but it took still 1.6 years until everything was completely over. Only (maybe) worth it if the people taking over are totally vetted and the company they want to run is similar enough to the old one so the trigger for "wirtschaftlichen Neugründung" does not take action, otherwise they have to basically do the same as founding a company from scratch and it makes no sense financially.

fl7305
0 replies
3h37m

In Sweden you can sell your company either to used as a "shelf company", meaning the buyer will later resell it, or you can sell it with the promise that it will be dissolved/liquidated and not resold.

It seems much more popular to sell it to be dissolved since there are some risks involved with someone else using it in the future.

So I can understand if it is not very popular in Germany either to sell a company to be re-used.

What surprises me is that it seems to be a good sized market in Germany for someone to provide a service where they buy your company and later dissolve it, but the service doesn't exist (?)

The formal process in Germany seems simple enough. Just sign a sales contract at a public notary, the buyer replaces the CEO, and you're done.

Since this doesn't really seem to exist (?), I assume the potential liabilities for the buyer are so great that the service price would be much too high?

ccozan
0 replies
18h52m

A notary, and a contract.

chinathrow
1 replies
9h38m

I don't get that service. How are they able to do it much faster than yourself?

fl7305
0 replies
7h26m

They can't.

If you pay them to dissolve the company for you, they buy the shares from you and replace the board and the CEO. At that point, you're completely free from the company.

They then must take the 7-9 months needed to go through the whole dissolution process. There is a mandatory 6 month wait after announcing the dissolution to give lenders/sellers time to make claims against the company. This wait is 12 months in Germany.

There is also paperwork for the accounting, tax filings, etc.

The service takes care of all this as the new owners. Since they have done this literally thousands of times, they don't need to spend many man-hours on it. Therefore, the fee is fairly low, about 1000 dollars, of which 300 dollars are mandatory government fees.

Example (Swedish): https://www.bolagspartner.se/avveckla-aktiebolag/

So if you own a company with 11 000 dollars in the bank and no debt, they will pay you 10 000 dollars for it.

You can do everything online, including signing the contract. No need to visit a public notary or similar.

fl7305
7 replies
1d1h

That sucks. I can see how it costs thousands of euros per year to do the annual financial statements, but 15 000? Is that common, or were there special circumstances?

jFriedensreich
6 replies
1d1h

nothing special i think this is on the cheap side, does not even include lawyers or any huge fights, just a "normal" shut down. Remember you have to include work time of founders that would be spend earning money otherwise. If germany forces you to do 2 hours filling out forms for bullshit you have to include your hourly wage to get the total costs. Usually everything in germany assumes "work to deal with government bs" is free and does not exist, which is of course absurd.

izacus
3 replies
22h53m

So you basically just made up a number to make it sound worse?

jFriedensreich
1 replies
18h49m

I did not make up anything. it was nearly 100h (so i did not even use a high hourly rate for estimating) of work for me, took ~2 years and the pure cash cost was nearly 10k. i think its really fair to simplify this as saying it cost 15k. I am really fed up by people downplaying the cost of labour imposed by ruthless beurocrats and i think its toxic to banalize this.

izacus
0 replies
12h2m

That's not how things work, you can't just make up some hourly rate and then bloviate about it like it's an actual cost.

Yes, time spent is a problem, but then communicate it in form of TIME SPENT, not just inflate the costs into some arbitrary number so you can make it sound worse while whining. It's dishonest.

teitoklien
0 replies
18h51m

Its not a madeup number, if his hourly rate is genuinely high, then its perfectly valid.

Time is money, and government isn’t supposed to get any discount coupon on it.

fl7305
1 replies
1d1h

Thanks. How much of the 15 000 was external costs to an accountant, public notaries, authorities, etc, and how much was the internal wages?

The numbers I have seen for external costs range in the low thousands, but maybe that is wrong?

jFriedensreich
0 replies
18h52m

it was nearly 100h of work for me, took ~2 years and the pure cash cost was nearly 10k. i dont remember what was for accounting, notary etc. but i think its really fair to simplify this as saying it cost 15k.

artdigital
1 replies
18h49m

I shut down my personal UG (small gmbh) and it was very painless. If you can prove that there are is no outstanding assets or debt, for example when you’re the only owner and did your books (Bilanz) correct, you can file for “deletion” (sofortige Löschung) of the corp, and not go through the liquidation process.

It involves setting your balance sheets to 0 (careful here, if it goes under 0 you are bankrupt and have to file for insolvency), proof through your bookkeeping that the company has no assets and no debt, submitting to the court and wait a couple days until the court signed off on it. Then the corp is gone.

fl7305
0 replies
3h7m

Thanks. Is the reason there is no 12 month notice period that there no longer are any assets for potential creditors?

It seems it would be very hard to set the balance sheets to exactly 0? What about prepaid taxes etc?

jFriedensreich
12 replies
1d2h

i could not find the most important question while skim reading: does it have to be germany. i would rather sit in boiling water than found a company there again. you don't always have to move away completely to have a non germany company though i can also recommend that final step.

bradhe
11 replies
1d1h

Bingo. I live in Berlin. I know loads of folks who found Delaware corporations, use deel.com to work for them, and eventually found a GmbH when they need to.

intelVISA
4 replies
1d1h

Nice strategy, isn't it tough to get an LLC's bank setup without residency?

johnloeber
2 replies
22h28m

Not anymore. Online banks like Mercury will do it entirely remotely without any residency requirements, IIRC.

ufocia
1 replies
19h34m

You still need to put up with various levels of KYC.

johnloeber
0 replies
11h40m

You really expect to open a bank account anywhere in 2024 without KYC?

vidarh
0 replies
1d1h

It might be tough, but even 25 years ago, my worst case (in Norway) to get a US bank account was to find one that'd let me have the paperwork notarized at the US consulate. The next step up in difficulty was flying to the US and open it in person. It still limits your choice, but last time I was involved in it it was easier (we found a bank that had a branch in the country my then cofounder was in)

dewey
2 replies
9h48m

What's the benefit of doing that? You'd still be subject to the local laws if you are in Germany for more than > 6 months a year and the fees that Deel is charging for your salary are not that low either.

redrove
1 replies
9h11m

With high privacy jurisdictions such as Delaware, New Mexico, Wyoming, etc. they're essentially keeping the german tax authority in the dark about the ownership of those LLCs, which might change now with the new US mandated filing with FinCEN for UBOs.

They're all committing tax fraud and thinking they're in the clear, only getting away with it due to lack of international cooperation. It will bite them in the ass sooner or later, the taxman always gets his cut. The only way to avoid it is to physically move out.

dewey
0 replies
9h7m

That's what I suspected. The amount of misinformation regarding tax-residency and exit taxes that people just believe because they saw some YouTube videos is scary.

jkaplowitz
1 replies
22h57m

Tangential question for third-country nationals in Berlin (like me right now): Does the Berlin immigration office readily give EU Blue Cards to people in that arrangement, or do they say it's really a form of self-employment because you own the company you're working for? And do the public health insurance funds treat this as employment or self-employment for purposes of qualifying for public health insurance, for people who don't yet have that?

Of course, the immigration question wouldn't matter for other immigration situations like holding German or EU citizenship, German permanent residence or EU long-term permanent residence, family reunification permits, or anyone who actually gets explicit approval to be self-employed. And the health insurance question wouldn't matter for people switching from employment (with public health insurance) to self-employment.

nicbou
0 replies
22h8m

The freelance visa requires a local economic interest (a reason to live here), usually in the form of German customers. There is nothing mentioned about where the company is registered and it should not matter.

Practically though, the immigration office's bureaucrats are by definition as far removed from entrepreneurship as they can be, and might struggle to reconcile the documents you have with the list of documents they are told to ask for.

redrove
0 replies
9h15m

Germany has CFC & management and control rules. Those LLCs are treated as german companies in the eyes of the Finanszamt if their UBO (Ultimate Beneficiary Owner) has a german tax residency and is managing the company from germany.

Sorry to be the one to break it to you but essentially they're all committing tax fraud.

throwaway220033
8 replies
11h21m

Germany is a cult, not country.

The whole system is designed for slavery. Never question anything here, just obey the rules, give up your individuality and live without a soul.

The new European way of freedom is not building your own life; you must let government take care of you, and in return you do what they ask. The best part is they think they are free and afraid of their privacy.

If freedom is not thinking for yourself and building your life, then what it is? The answer is; partying, drugs, alcohol, orgies. And complaining about other countries issues. Textbook cult patterns.

German news are full of other countries’ problems, they will discuss racism in US for weeks and months meanwhile Nazis are burning Turkish families once a year alive, murdering ordinary people. You’ll see how they write the softest article about burning immigrants alive in 2024 their own country but they will happily go out to the streets and protest for US or Ukraine.

How are you going to convince any immigrants to live here and work with you? None of the immigrants who live here say good things about Germany or Germans.

Investment scene is also pretty much depends on your race. Unless you’re already profitable or white european, they won’t fund your startup. They rather fund some grow-carrot-in-balcony startups instead of investing in your company.

I’m hoping to get out of this shit show soon and almost everybody around me consider the same.

redrove
5 replies
10h34m

While I wholeheartedly agree with your points about being forced to remain a wage slave for pennies (in comparison to say the US) and people relying on the government way too much— these are right on the money — I do think casually slipping in “orgies” lessens the validity of your claim in the reader’s mind.

Also I don’t think it’s fair to claim immigrants are being set on fire (with no citations) like it’s just regular business. Horrible things happen everywhere and I doubt Germany is the worst place in the world.

Overall you had me in the first half, then went off the reservation. Still I hold that your first points are valid.

throwaway220033
2 replies
10h20m

My comment meant to trigger thoughts, not your echo. Do your own thinking.

Just last week a Turkish family was set on fire. They will claim the victims are not Turkish and then won’t reveal the identities or photos of them. So you won’t know it’s still happening.

Just talk to any Turkish person. Speaking of startups; Nazis here still attack Turkish small business owners. Ordinary people also face racist attacks if they get out of their neighborhood. Also at work if you work with Germans you’ll deal with mobbing.

There was even a serial killer just murdering Turkish small business owners. So you thought it’s just bureaucracy?

redrove
1 replies
10h11m

I don’t disagree with you that nobody should have that happen to them and it’s horrible, but you’ve yet again disingenuously implied that Germany is some Nazi utopia where people are set alight on the street.

Bad things happen everywhere. DE is not unique in this regard but they do their best to prevent it, especially considering their history which weighs heavily on their culture.

(I’m not german btw)

throwaway220033
0 replies
9h51m

You’re as good as Germans on making word salad for normalising racism.

Where’re you from?

throwaway220033
1 replies
10h29m

It’s probably because you graduated from a university? :)

redrove
0 replies
10h28m

I in fact did not ;)

mrks_hy
1 replies
4h58m

Your post is one big "citation needed". You come across as quite bitter.

throwaway220033
0 replies
3h30m

The Mölln arson attack: 3 Turks were killed, including two children The Solingen arson attack: A Turkish family were killed, three children and 2 women NSU Murders: 10 Turkish small business owners were murdered Hanau Attacks: 9 people were killed by far-right terrorist March 2024 Solingen attack: A Turkish-Bulgarian family was murdered by arson attack.

2021 Report by Turkish Foreigners Community: https://nfrt.blob.core.windows.net/nefretsuclari/PageModule/...

Only in 2021 there were 300+ attacks recorded towards Turkish people.

You have no clue how many unrecorded attacks have been carried out Turkish people in day to day life in Germany.

The truth is so obvious and EVERYONE ignores it. If you ask white Germans why they organize large protests for George Floyd and virtue-signal how liberal they were and yet they never raised their voice for all these murders and violence, you'll reach the racism in their heart.

The difference is that Turks do not accept the victim status and take measures in their own to protect themselves.

They even formed a gang just to protect themselves from skinheads:

https://en.wikipedia.org/wiki/36_Boys

Any more citation you need? Do you need help digesting the truth?

i_am_a_peasant
6 replies
11h47m

Literally the only good thing about germany are the salaries compared to the rest of europe but even that is becoming less great nowadays.

lnsru
3 replies
10h44m

€120k salary does not make you a king. And prices compared to pre pandemic ones also skyrocketed. Germany was once nice average salary/low living cost country. Now only average salary left. But it’s ok when one is already inside. Not recommended for newcomers though.

i_am_a_peasant
2 replies
10h24m

100K is damn hard to break into if you're on the strictly technical path nowadays, but maybe it's just my line of work (embedded). I've been trying to learn some web stuff and go and C# to maybe expand my job options a bit.

ostenning
1 replies
10h0m

100K is easy to break as a freelancer. You'll obviously have more things to consider - multiple clients, accounting, legal and potential downtime, but its totally doable.

I think embedded could actually be a good discipline to work as a freelancer, most IoT products usually have a more rigid and defined development cycle than web platforms.

i_am_a_peasant
0 replies
8h47m

yeah i also don't wanna do freelancing xP

skrebbel
1 replies
11h28m

And the pretzels!

i_am_a_peasant
0 replies
10h56m

ja they're pretty good, but they're easier to make than you'd think, you just boil them in baking soda for like a minute before baking them, that's what makes them fluffy.

weinzierl
5 replies
12h26m

As a German I agree with the gist: Germany is overly buerocratic and not startup friendly.

When it comes to founding a company the author overcomplicates things, however. This is OK when you want to study the process, or want to become an expert in this and maybe make a business out of it.

If you just want a company get started, just buy a ready made one. There are specialized lawyers that always keep a pool of freshly founded companies to sell - exactly for that purpose. These companies are brand new, usually just a couple of weeks old and have no significant history. They have generic names and you can decide on a proper name later.

If you don't have anyone to advise you and insist finding a suitable lawyer on your own: Go to Germany's central company register (Handelsregister) and research startups in your field. The lawyers and law firms specialized in selling new companies will stick out pretty quickly to you.

jasonkester
2 replies
11h24m

I find that Europe often has things like this. That is, the “easy way” that everyone uses.

The frustrating thing is that there is no way of learning about it until you’ve already endured months of pain trying to follow the impossible steps outlined on the official government website.

If that site had a little notice on top saying “Stop! Nobody does it this way! Google this term instead”, that would save a lot of pain.

tnolet
0 replies
7h39m

I'm Dutch (Netherlands) and lived in Germany a while. I started companies in both. The Netherlands is ultra-quick and cheap. Germany not so much as per this thread.

The mythical "European state" where everything works the same does not exist.

iamsaitam
0 replies
10h11m

Ah yes, Europe the country

redrove
0 replies
11h26m

This is such a cop out.

You shouldn’t complain about the process of incorporating and buy a ready made one?! This is just encouraging middlemen and lessening pressure on the government to actually work for your money!

I’m guessing you’ve never tried incorporating in a country where it actually makes sense and you can get going for cheap in a matter of days.

L.E.: Having worked with germans and german companies for a long time, I think this permanent mentality of making up excuses for why rules are this way (they must be Perfekt!) and blaming the people trying to follow them for not doing it right is one of the key things that’s holding you all back.

I’ve bickered so many times with germans and their bureaucracy in company processes, after years and years I just decided to give up (I was never going to make any difference, just hurt my own sanity) and I try to avoid german companies now.

cess11
0 replies
12h22m

I don't know how it works in Germany but where I live one reason to buy an 'off-the-shelf company' is that you can pay out dividends with relatively low tax faster.

chironjit
5 replies
21h13m

Having lived here for 1.5 years, I can say that beraucracy in germany basically works in the sense of how bureaucracy in other lesser third world countries work.

Basically, the system works in general for the average population but is broken such that it affects most those at the margins (for example, the rich, the poor, those entrepreneurial, etc).

In other countries, when this happens, you see the rich paying their way to access while the poor generally suffer until some populist movement comes and promises to save them.

It's thus really not that surprising, I just had yo change my view on where I placed each country in this developed/developing country mental model

resolutebat
2 replies
19h34m

In third world countries, if you're wealthy (by local standards), you can grease the wheels with bribes, or better yet, cheaply outsource tasks to "consultants" who know exactly how to navigate the system and pay the bribes on your behalf, giving you plausible denialability. Need an Indonesian multi-year business visa? $200 to the right "visa consultant" and it's yours in days.

As far as I can tell, this is not an option in Germany, certainly not cheaply. Healy, one of the global companies that does this kind of thing, wants €14000 to create a GmBH for you, and I'm pretty sure that doesn't speed up things, it just makes it somebody else's headache.

data_maan
1 replies
11h11m

Is this an actual thing in Indonesia?

csomar
0 replies
10h35m

It's more than $200 but yes. Other countries can be cheaper/easier. Indonesia is heated because of Bali.

sliq
1 replies
15h37m

brilliant comment! also, the average population doesnt know better, as they dont have a reason/possibility to compare, so they think THIS is the best possible solution.

PurpleRamen
0 replies
6h6m

so they think THIS is the best possible solution.

Nobody thinks that. Everybody knows how much bureaucracy sucks, and everyone regularly rages about the insanity and traps. There are whole TV-Shows about the bullshit done there. But people can't change it, so they just accept it, and know it could be worse.

blablabla123
4 replies
1d1h

Fun fact, GmbH is not about protection of getting sued. (Because there's "Durchgriffshaftung") It's useful for companies that trade physical goods and e.g. when a vendor that was already paid got bankrupt it won't affect the finances of the founders. Although it shows to the outside world that 25 k€ have been paid and it's not a 1€ company. But in case of impeding bankruptcy it must either be resolved or declared otherwise things go bad. ("Insolvenzverschleppung" - the punishments are a little draconic) GmbH is really a lot of effort to maintain and expensive. The paperwork for UG "Mini GmbH" is basically the same. If I would try co-founding again, I'd probably not do a UG or GmbH.

jimkoen
3 replies
1d1h

("Insolvenzverschleppung" - the punishments are a little draconic)

The concept of declaring bankruptcy is well known in most western jurisdiction, as is the criminal practice of delaying bankruptcy. Believe it or not, in most of the developed world you can't just have a company go tits up and expect to go out of there scot-free.

Durchgriffshaftung

I've never heard of this concept before, but from what I can gather it's a rarely applied legal practice that's defined by case law (case law is is pretty rare to encounter in Germany) and it essentially just sounds like what happens in the case of gross neglience / large scale fraud.

blablabla123
1 replies
23h58m

I don't know the implications outside of Germany although looking in the Wikipedia article it sounds it's an especially big deal here. If I recall it correctly from a back then mandatory course I did about it, it can even happen for an unpaid parking bill on an empty account.

I'd assume so but probably most legal matters are settled outside of courts. Also looking at it the other way around, it would be pretty silly if creating a GmbH would create immunity. Indeed I doubt it's applied very often but when trying new territory regarding copyright, it's probably worth a consideration that one may still be personally liable.

That said, my point is just that UG/GmbH is overkill in many cases especially if the company isn't making any serious money. You can invent a name, go to the town hall, fill a form so you can do business with it and it's possible to legally receive payments. Founding a GbR is a quite informal thing

farbklang
0 replies
14h45m

A lot of companies do not want to deal with GbR / freelancers anymore as it quickly gets them on the hook for evading social security taxes (Scheinselbstständigkeit) - in my experience having a limited is helpful for landing projects with big corps

BjoernKW
0 replies
19h13m

Durchgriffshaftung

The English / common law term for this is "piercing the corporate veil".

anovikov
4 replies
14h4m

What is the upside of opening a company there if you can incorporate in a EU country with much much lower taxation say Cyprus or, you have a EU citizenship and the company is in IT field, Malta, and pay just 5% tax (and 0% tax on dividends from it if you move there and become a tax resident)? It effectively means increasing your income 2x-2.4x depending on how high the revenue is, vs paying 30% profit tax and then on dividends, 45% personal income tax in Germany. While still enjoying all the same access to funding and open EU market as in Germany.

Another much closer and cheaper to run option is Hungary where company profit tax is 9% and personal income tax is 15%, still providing up to 2x higher net personal income on same revenue vs Germany.

WA
3 replies
10h14m

Because you usually have to move to the other EU country, or at least live there for half the year and many people still like to live in Germany. Optimizing taxes might not be the main goal in life.

anovikov
2 replies
8h52m

But there are plenty of companies that provide substance

WA
1 replies
8h0m

What do you mean?

anovikov
0 replies
7h39m

Well, substance is a way to domicile your company in a certain jurisdiction in a way that passes checks according to the rules of tax authorities of necessary countries. I saw people doing it in Madeira, in fact with German clients, and had German cops/tax officers fly to them to Madeira, check compliance, and agreeing that they conform - you need to do a certain minimum set of things like keep an office, papers, minimum number of employees etc. - there, and that will be enough.

As for your own tax residence, some countries offer shortened terms of annual stay to qualify, Cyprus offers 60-days scheme for example (that again comes with a certain set of rules to obey).

Simply put, there's a massive demand for the "i want to pay as little tax as legally possible on my IT business" thing, and many countries lined up to do it as conveniently as possible for people from all kind of places. Only country for which it doesn't work is good ol' USA, because of world-unique system of citizenship-based taxation.

mdekkers
3 replies
13h8m

I founded a business in Germany, and the tax departments decided to asses me for 2024 to an amount of 100% of my combined 2020-2022 turnover. Instopped trading halfway through 2023, abd there will be no turnover for 2024. I currently have a tax “debt” that is literally more money than the business ever _collected_ over it’s entire existence.

It is nearly impossible to find a tax lawyer that is willing to take on the case, and my accountant keeps telling me that there is nothing to do except pay up and then wait for the refund. I don’t now have, or ever had in the past, the kind of money they are demanding. The anxiety that this situation has been causing for the past year and a half (they did a similar stunt for 2023) has become unbearable - I am threatened with personal bankruptcy and jail time for taxes I don’t even owe - and I often consider the easy way out.

I recently had to appear, in person, at the tax office (I reside on the other side if Europe now, but was forced to make the trip). There are no options to send a representative. You must make declarations in person, like its 1734.

Living in Germany and running a business there is turning out to be the biggest mistake of my life.

sph
1 replies
12h25m

I'm sorry to hear that. I do not have any advice to offer, but someone close to me went through a similar ordeal of bureaucratic and fiscal hell in another European country. They lost everything they had to the taxman and its insane rules. There is a great number of people similarly broke or jailed because of how restrictive and anti-business these laws are. I do not see how can one in good conscience defend them as good, or productive for entrepreneurship.

If everything fails, I would suggest to at least make as much noise about this as possible. On social media, local news, etc. Just like a viral post is the only way to get Google support, in these bureaucratic hells an interview from a journalist might open some novel avenues for help.

I am so glad circumstances brought me to the UK, where in comparison company law is child's play, and managing my business and its taxes takes a couple hours a year at most.

mdekkers
0 replies
12h18m

Thabk you for your kind words. I used to live in the UK and had several businesses there, and can confirm your experience.

eagleislandsong
0 replies
3h30m

As someone who's also been the subject of harassment and terrorism by the tax authorities in another EU country, your comment gave me Vietnam War flashbacks.

Hang in there. The only way out is through.

tdullien
2 replies
1d

I have founded a company in Germany in 2004 and sold it to Google in 2011. I started an AG in Switzerland in 2019 and organized a Delaware-Flip therafter.

Most of the described steps are also necessary for a Delaware incorporation, and I found the process of incorporating a nothingburger.

1) The choice between a limited liability construct or a pass-through construct exists everywhere. My advice was always: Separate the biz from you personally, always use the non-pass-through option unless you really know what you're doing. Complexity and pain of a GmbH is identical to Delaware corp.

2) picking a new name that isn't in any dictionary is generally good advice, no matter what your jurisdiction is. We originally incorporated as SABRE Security, then years late got into a trademark dispute and had to change names. The fact that the Handelsregister can reject particularly poor names shouldn't be an obstacle.

3) I find getting riled up about the share capital a bit weird. I have never seen anyone struggle with that.

4) we can debate the utility of the notary public system in Germany, but this is hardly an obstacle.

5) Setting up a bank account with a GmbH iG in Germany is easy and quick with any of your local savings banks. These are non-profit banks with the explicit charter to help local businesses. Not sure what the author did wrong.

6/7/8) yes you need to pay in the share capital and prove you've done so, and get the reply from the Handelsregister.

9ff) yes you need tax and VAT IDs. Yes you need someone to do your books and taxes. True in Delaware, true in Germany, true in Switzerland.

All in all, the article reads super-whiny. I mean the author even complains that the notary uses your passport to authenticate you (?!).

I have been through a German GmbH, a Swiss AG, and a Delaware C-Corp with VCs, and I can tell you: The bureaucracy is pretty similar. And you will need help with taxes, accounting, legal compliance etc. And yes, it'd be nicer if all of this was simpler, fewer middlemen and lawyers involved, etc. - but this article paints things that are the absolute basics in any of the big jurisdictions as nefarious obstacles.

raverbashing
1 replies
23h3m

Thanks for this reality check

Yes the process in Germany can be improved a lot. But a lot of it is similar or equivalent to process in other places

I mean the author even complains that the notary uses your passport to authenticate you (?!).

Yeah I had skipped this when reading the article, sorry it really sounds like the author doesn't know much about the basics of gov processes

"Don’t forget your ID or passport because that’s their foolproof way of identifying you"

Yes, that's exactly what it is. Your passport is official ID

twixfel
0 replies
22h45m

I mean he established a GmbH in Germany so it sounds very much like they do know what they're talking about.

nforgerit
2 replies
15h23m

German solo-founder here who just gave up this shitshow and moved to Estonia:

Estimate your revenue at 0€ for now unless you have real reason to believe otherwise (do you have paying customers lined up already? probably not). That way, you only have to pay corporate tax at the end of the year based on your actual profit (vs. having to prepay tax every quarter).

This is funny. I tried to set my revenue to 0 in the beginning and the tax authority simply set it to 60k (they couldn't even tell me where this number came from). After a couple of harsh phone calls (from their end, they were yelling) they simply kept it and told me I could file a "Verwaltungsklage". Of course, they (and IHK) derive the quarterly pre-taxes from that and didn't give a rats ass if I actually made any revenue. I got my money back a year later (which got worse and worse over time). Simply kills you, If you have to pay the bills and try to route your little boat through the stormy seas. Several times I spontaneously had to credit 2-3k EUR to get my customers to shorten the term of payment.

IHK: Domains are not allowed.

This is funny as well because my company name was a domain name. IHK noticed that and I told them (on phone w/o any proof) that it's mine and they were okay.

The rest, I'd say is batshit crazy bureaucratic but somehow manageable. Germany is just not a good spot for "some SaaS idea" or maybe not even for bigger ideas as well anymore. At least not until they radically streamline their bureaucracy (which depends on radically professionalized politics which is not realistic at this time).

PS: Founding a company made me stop believing in "Social Market Economy" (German self-label) since the taxation system and social systems allow for amazing things once you're out of the employee system.

Edit: Typos and grammatical mistakes.

pkos98
1 replies
13h55m

What "amazing things" are you referring to?

I am not too familiar with the matter, only aware that self-employed people often generously use deductions and a company car to ease tax burden.

nforgerit
0 replies
5h58m

It opened up plenty of loopholes to avoid taxes and quit social systems, starting from healthcare, pensions etc. to all those little extras that allow you a tax avoiding setup which is impossible for regular employees. It also incentivizes ridiculous consumption, like the company car tax you mentioned but also to “just buy anything for 100k just to maximize cost”. It also doesn’t really incentivize RND but to wait for the next “RND tax program” any future government might be setting up. No shit that German companies are so bad with innovation (plus they’re usually lead by MBAs and lawyers who frequently have no clue).

jiripospisil
2 replies
23h29m

Not sure if that's common in Germany but you can use services which offer "empty" but legally established companies and you just change the name.

seabass-labrax
0 replies
20h2m

Do they also sell really old ones, so you can start in business and immediately advertise with a slogan like "since 1950"? This is something that has been somewhat common in Britain with businesses such as breweries, as provenance is highly valued by the market, yet not generally examined with much rigour!

konha
0 replies
22h57m

It is. “Vorratsgesellschaft”

dewey
2 replies
9h55m

I was talking with a friend yesterday who asked me about "de-mail" and "gmx.de", both words I haven't heard in many years.

Apparently if you want to contact the pension insurance (Rentenversicherung) and you don't want to call them (Maybe because you don't speak german), or send a paper letter you'll have to sign up for this "secure email, but not really email" (https://en.wikipedia.org/wiki/De-Mail) service. It costs a small fee to set up (10 Euros), or a bit cheaper if you are listed in the "public de-mail phone book" (6 Euros) and you have to verify yourself through a government ID.

If you are not a german citizen you of course don't have this ID card and can't do the verification online, that means that you now have to go to one of the few places in the city where you can verify yourself for the service. Some of them are just small corner stores that usually also do postal services.

Very bizarre experience, just to get some simple answers related to your pension.

jonathanstrange
1 replies
9h31m

Addendum for others who read your comment, gmx.de is just a free email provider like gmail that is very popular in Germany.

dewey
0 replies
9h28m

At least it _was_ very popular many years ago, when I created my first e-mail address in school for MSN and because they had 10 free SMS every month.

brancz
2 replies
9h28m

Having gone through this a couple of times, I'll say that all of this is true, but in practice, I find the actual founding process not very complicated with neo-banks that understand the founding process well. I just founded a new GmbH last week, and it took 2 days in total.

One more thing I'd recommend doing before going to a notary though is get a "Vorabstellungnahme" from IHK to ensure that they won't reject your company name which would create delays and additional notary cost. It costs some money, but is worth ensuring it doesn't cause chaos afterwards.

1. Get "Vorabstellungnahme" from IHK, takes a few hours.

2. E-mail notary (yes I've worked with them a couple times, that might speed up their response time), get pre-fab founding docs within a few hours, appointment next day. Digital version of the founding docs will be available within a few hours.

3. Create account with Qonto or something equivalent, there's an explicit configuration for your notary email, so they will take care of providing proof of the starting capital.

4. Transfer starting capital.

5. Notary hands in Handelsregisteranmeldung, sends you a copy and upload it to your bank.

In practice, I find the founding process not complicated, but the day-to-day operation, bookkeeping, taxes, etc. way more painful.

Founding a GmbH wholly owned by a Delaware C-Corp, however, is intensely painful, practically no bank wants to work with you, and notaries aren't enough, you need to work with apostilles (international notaries). I highly recommend working with a law firm to set this up correctly but expect easily upwards of $10k between lawyer, apostille, and bank account costs.

thiago_fm
1 replies
7h57m

BTW, congrats on the funding ;-)

brancz
0 replies
1h1m

Thank you!

type0
1 replies
20h0m

The national slogan of Germans is "Papiere, bitte!"

nforgerit
0 replies
15h51m

"Ausweis!"

scurth
1 replies
12h17m

Awesome writeup, i did a similar years ago. One important thing you missed is VBG Berufsgenossenschaft. Mandatory to register within 10 days after the notary. Even as a one person Gmbh you need to register there. Running costs: https://www.on-promise.cloud/en/compendium/01-how-much-does-...

scurth
0 replies
12h15m

With all these different writeups from so many people I am just left with one big question: Why is the not such a government curated list or guidance on these topics?

onnimonni
1 replies
20h49m

Thanks for the great blog post.

I'm very happy to be living and building business in Estonia instead. Establishing the company is easy and everything else except KYC meeting in bank can be done online. Also in Estonia companies don't pay any taxes on yearly profits. Almost all of the government officials speak fluent English except in the case where I wanted to have company owned car. Would highly recommend this option for others too if you can relocate easily. They even changed the rules in 2023 and now even 1€ initial capital is enough.

novaRom
0 replies
9h54m

Why relocation is needed? Can a EU citizen open a business in Estonia?

lynx23
1 replies
13h56m

Wow, I love this thread. Tons of expats talk to each other how bad the country they choose for living actually is. And on top of that, words like legally entitled fly by. If you don't like Germany (who is?) then move on. It was never a country particularily friendly to expats. Berlin might be different if you find your flock... Heck, I had friends from .at move to .de and totally fail to connect with people. Really, if you can move out again, go for it. But whining about the paperwork is pathetic.

SkinTaco
0 replies
13h46m

Classic - someone from the EU who regularly hates on the US is upset when people do it to their country.

I always say: if you want to know the bad parts about America - Ask a European! They're the only ones who seem to know.

limaoscarjuliet
1 replies
6h20m

Missed the point on communicating with the Tax Govt people by snail mail - you want it that way. Working with them over phone or email will inevitably lead to you being hit with fines and other nasty scenarios.

Always get a lawyer to represent you when the Tax folks start an audit. Never tell them anything over the phone or email. Always ask for a letter and provide explanations via letter. Do record all communications with them. Never say anything they did not ask for.

nforgerit
0 replies
3h37m

I absolutely agree. I learned the hard way that they cannot be trysted and will use the different communication channels to their own advantage. Still kind of shocks me as a German who usually went with “they do weird things but you can generally trust the state”.

khaomungai
1 replies
21h48m

Yes, it's really painful here in Germany. I've heard in Portugal it's pretty easy.

Any recommendations what would be the best place to found a company for someone who's living in Germany?

sph
0 replies
12h17m

Open it in UK. There are dozens of online businesses that deal with all the overseas paperwork. Otherwise Estonia.

You will still have to pay your personal taxes in Germany, if you reside there.

fxtentacle
1 replies
11h35m

This article seems to be new, but the info in it appears to be very outdated.

1. Most startups now create an UG which has most of the GmbH benefits and protections, but only negligible cost.

2. The handelsregister website is deprecated. It's replacement is quite nice and fast.

Their section 2b also doesn't apply for UG because it's so cheap there is no need for trickery.

Their section about issues finding a bank seem weird to me. I just took the paper slip from the notary office and walked over to Deutsche Bank (the largest mainstream bank) and it took them only a few minutes to set up the account. Then after the card arrived in the mail, I walked back there, paid in the money and gave the paper confirmation from them to the notary guy. I'm not sure how you could make it any easier.

The only thing where I agree is that the spam is a problem.

hnbad
0 replies
4h29m

It's also not mentioning that incorporating (or being an Einzelunternehmer exceeding €600k) means you need to do formal accounting (Bilanzierung) which is a lot more involved than what any non-expert should handle personally so you will need a tax adviser to avoid severe fines for easy bookkeeping mistakes.

That's another factor when deciding whether to go for a UG/GmbH or Einzelunternehmer. That said, the costs are based on revenue so you'll ease into it, it's just another cost to be aware of.

Oh, and if you hire anyone for any editorial or creative work and they're not doing it as a UG/GmbH, be aware of Künstlersozialkasse payments (which you have to handle yourself unprompted). You'll usually get a visit by the Deutsche Rentenkasse after about 3 years for an audit and they'll be very unhappy if you didn't pay your dues.

drooopy
1 replies
22h54m

I've heard similar Kafkaesque stories from German relatives of mine. And from what I gather, most digitalization efforts by state and federal government essentially resulted in digitizing existing bureaucratic procedures.

kleiba
0 replies
22h50m

Yeah, I would say it's pretty typical.

I moved to Germany about 10 years ago, and my wife and I bought a house here last year. I think the money went to the seller some time in October, but to this day, we're not just yet the official owner of the property because we're still stuck somewhere in the red tape. We're almost there though though (we hope), it's just that change of ownership of a house is a super complicated multi-step procedure here that must involve a notary! Good stuff. And mind you, I'm not talking about anything special about this purchase, just a young family buying a home from an ordinary person who moved away.

(We're hoping it's only a matter of weeks now, though, wish us luck!)

4ad
1 replies
20h58m

As an EU citizen, it's easier to open an LLC in the US, without even stepping a foot in the US than opening an LLC in the EU.

The most depressing thing is that EU citizens don't even see any problem with that.

nickpp
0 replies
10h40m

Entrepreneurs do, so the even more depressing thing is how low EU's entrepreneurship rate is.

yieldcrv
0 replies
18h58m

Two important points on how to save time here!

. International “startup” banks like Wise generally don’t support this, so don’t even try! You’ll lose multiple days going back and forth with their support, like I did. You can open a Wise bank account later when you’re properly incorporated.

The real optimization is not using Germany companies to begin with.

I'm a US citizen and US resident, I had some German limited partners in a small hedge fund several years back. The offshore feeder was in the Cayman Islands, alongside the Master Fund. Both had bank accounts only in US banks. (All forms with IRS and other regulators filed no problems there, good to have a business bank familiar with these things.)

Now to those particular investors, wiring money to a foreign bank with foreign transaction needs was too much for them. The US being a foreign bank from their perspective. They just wanted to use SEPA transactions and transaction instructions that they are familiar with, which are (potentially) instant.

This US citizen was able to sign up the Cayman Islands feeder into Wise for an EU bank account no problem, had SEPA details no problem. Makes it super easy to swap over to USD with few fees and wire it to the primary bank account.

Its also important to note that Wise has high transaction limits. Like $1,000,000 per transaction is the limit, its not a daily limit. so even if you get a large LP its not really a limit just multiple transactions. Not perfect, but way better than many other fintech app solutions for casual use.

Before Wise it was nearly impossible for an American to get real Eurozone banking easily after FATCA treaty was ratified. But with Wise it was pretty quick maybe 1 business day with support in their business sign up.

One point against Wise is that their Terms of Service are very restrictive. There are lots of legal activities you're not supposed to do with them.

yieldcrv
0 replies
18h55m

The drawback of holding construct is that you have to found your holding company first, so you have to go through all of this twice.

The holding company doesn't have to be a German one

(and neither does the operating company, but you could follow this tutorial and have a holding company elsewhere)

tymm
0 replies
7h39m

My primary concern with establishing a company in Germany isn't the bureaucracy—it's the unreasonable exit tax. This tax feels like a trap because it's levied on the company's valuation, not its revenue, effectively anchoring businesses to Germany. I'm curious about the preferred destinations for entrepreneurs looking to avoid this issue. Do most opt for the Netherlands or Ireland, or is there another popular choice?

tietjens
0 replies
6h4m

My biggest complaint about German bureaucracy (reflected indirectly in some comments here) is that there is an insistence on following the rules, even while there are SO many rules and laws that officials very often give you wrong, incorrect, misleading answers.

I see this over and over and over again.

If you hit a bureaucratic wall in Germany you often can get over it, not by paying money like in some countries, but by paying with time from your own short life, and with your nerves trying to bend the system to your will. Is it worth it? No. Not in my opinion.

stevoski
0 replies
1h11m

I lived in Germany for years. I listened to Germans gripe about how bureaucratic it was to do things there like open and run a business.

Then I moved to Spain and started a company there.

Germans, your country has NOTHING on Spain when it comes to pointless, confusing bureaucracy.

Your country, your laws and rules and the application of them are BLISS compared to Spain.

sliq
0 replies
15h45m

German here. The example with the Kebap owner is -probably- not like it seems, because there are usually two ways how it works:

1. these kind of stores are technically owned and legally run by somebody who just made the paperwork and gave the finances. The people working there dont do any paperwork, and of course they cannot as they often (like in the vietnamese produce stores) dont speak german on a level that would allow to fill out paperwork.

2. Lots of smaller business actually didnt fill out anything, and surpprisingly it somehow works for them, sometimes for years, even in busy areas, i mean they serve hundreds of customers per day but never filed any invoices, only accept cash, nobody speaks german and they dont have any documents. It's fascinating. There are a lot of rules in Germany (of course) when you serve food or alcohol or operate at night or have tables and chairs, and i can tell you it's not even legal to NOT have toilet or to not have prices on the menu, but well, they still run the business, probably without even knowing all the rules.

We can learn from them I think, just SHIP IT!

rurban
0 replies
3h31m

This is only about founding a GmbH. Only to avoid high liabilities. ("beschraenkte Haftung")

A normal simple Einzelunternehmen is trivial. I needed about 2h just to avoid the trap of the Gewerbesteuerpflicht (tip: system software counts as freies gewerbe, application software development not!), went to the "Steuerbehoerde" (local tax office) and that was it. No "buchhalter", just Online Elster 4x a year for the USt, and 1x a year for the ESt. Same as in the US or every other state. I did that in 3 countries so far. The US was easiest.

An engineering office is more complicated because of additional mandatory expensive IHK insurances and membership fees. TKK (Techniker Krankenkasse) is always better

rsp1984
0 replies
5h8m

The worst part of being a founder in Germany is not even the bureaucracy (even though it is just as bad as described), it's that everybody wants money from you all the time:

- For services that you never signed up for (there are certain institutions in Germany that can bill you for stuff you neither want nor need but they have the full force of the government behind them): IHK, GEZ (Rundfunk), Verwaltungsberufsgenossenschaft (in case white collar workers hurt themselves by typing on the keyboard...). If you refuse to pay, they can literally put you in jail.

- For services whose necessity is entirely generated by the government: 1k EUR for the Notary to read you some boilerplate text. 500 EUR per month for bookkeeping services (govt creates all these arcane rules to make sure you never want to do it yourself). Plus many legal bills because German business and employment law is a minefield and you don't want to blow yourself up.

- For tax on imagined revenue that you didn't even realise yet. Yes, the govt. literally makes things up and says "that's probably going to be your revenue this year and you owe us tax on that".

If you're a big company with large predictable revenue and departments of people to deal with this, I guess it's tolerable, but there is no doubt in my mind whatsoever why the vast majority of successful startups exist outside of Germany.

quitit
0 replies
19m

When it comes to European bureaucracy:

If we put Germany on one end of the scale and put Estonia on the other end, most of Europe is going to be placed near Germany. Germany isn't the outlier, Estonia is.

Also one would be mistaken to believe that these bureaucratic processes produce a better result - there's already numerous examples where weaknesses in these systems have been exploited. One recent example exploits the requirement for applicants to supply their own photos. In this case people who looked somewhat alike used computer graphics to merge facial features to produce a mid-point headshot, resulting in one identity that worked for two individuals.

nickip
0 replies
3h41m

Researchgate might have a gmbh but technically is incorporated in the US. Maybe thats how they got their "special name".

lifestyleguru
0 replies
22h40m

Founding a company in Germany?! Simply living there and working on employment contract is complicated enough. Do not attempt it without lawyer parents.

leonry
0 replies
11h9m

I like that the author gives a detailed step-by-step process with caveats on the way along. However, I believe it is slowly improving. Namely, there is an online service (https://online-verfahren.notar.de/ov/home) that may somewhat ease the process (steps 2–4 & 8).

kaashif
0 replies
19h2m

And then, if you pay it out from Magic Holding GmbH to you personally, then yes, you pay ~26% capital gains tax – but the huge benefit here is that it could accrue investment returns in the meantime!

This isn't an optimisation and doesn't matter unless I'm misunderstanding what is being suggested. Multiplication is commutative so it doesn't matter if you pay the taxes before or after accruing returns, as long as your goal is to get that money to you.

$100 * 0.5 (for 50% income tax) * 2 (for 100% investment return) = $100 whichever order you do the multiplication.

justadolphinnn
0 replies
18h1m

How cute, he thinks the kebab shop is registered and paying tax LOL

juliangmp
0 replies
8h12m

Haha actually everything here is that insane :)

jheriko
0 replies
9h23m

step 1: register a british company step 2: done...

jarek83
0 replies
5h34m

The chicken-egg situation for bank accounts is the same in Poland - it's funny how such fundamental thing haven't been fixed even in Germany

hiAndrewQuinn
0 replies
13h30m

Come form a company in Finland instead! We're quite a bit better on the margin in this regard.

Okay, alright, there are a lot of EU countries that are quite a bit better in this regard. More generally: Do your research, shop around, and move to opportunity!

heipei
0 replies
12h47m

Everything written in this article is true, but there are as usual more nuances to all of these. One of the primary reasons for me to go with a GmbH (and a holding) was the expectation of excess profits that I'd want to reinvest instead of drawing a salary. The other neat aspect of stacking a holding company on top of the operating company is that capital gains are not taxed in the event of a sale. That goes for investing into ETFs for example, but more importantly if the holding company ever sells the operating company then that sale is tax-free for the holding company. The ultimate owner is then able to pay out the proceeds and only be taxed using his personal capital gains tax rate (25%-ish).

harha
0 replies
20h2m

Even more fun: how to get rid of a company

globalise83
0 replies
20h5m

I know this is a tongue-in-cheek critique of the process, but it's also a really handy guide! Good job author.

earthnail
0 replies
9h54m

I have a German company. It's driving me nuts. So much overhead for NOTHING. The bookkeeping and tax is insane. Tax system is so complicated only one dinosaur, Datev, works correctly, so you end up with 1990-era-style software (yes, that bad).

I currently have to change our address. Need to go to the notary. ~500€ for that. WTF...

dappermanneke
0 replies
4h18m

germanys most important role is to stop people from noticing the actually good countries around it

caseysoftware
0 replies
5h0m

That's nuts. I created a pair of LLCs in Texas in '22 and the registration process was $300 (each), submitting one form, and saving the resulting pdf.

Starting their bank accounts was another matter though as they wanted the pdf from above and Articles of Incorporation and/or an Operating Agreement, neither of which was required by the state. But the document itself wasn't important as my banker googled to find a one-page version, emailed me the link, I filled in my details, and printed it. :|

Now once a year, I have to go online and report my annual revenue. And because I fall under the minimum, the rate is 0% unless I file it late, then it's a $50 late fee.

archi42
0 replies
5h47m

Uh, yeah, this is all horrible. Even when founding a company makes sense, it's sometimes difficult to justify - e.g. when we were buying a house I was looking at bigger buildings with multiple units, so having a estate holding company would have made sense: We're already taxed over 30% and rents could have pushed us into the highest bracket, while most of the money (rents) in the holding would have gone into financing and maintaining the building anyway.

Don't get me started on founding a company and then getting necessary loans (all while the loan market changes and suitable houses might vanish from the market). Some proper investor is probably now renting out a multi unit house we would have bought, making nice profits while we would have aimed at boosting our pension in a few decades.

But well: That's the way it's meant to be, else the rules would be different, or would they?

(We got an old SFH instead, and slashed energy consumption by ~80-90%. That's not even accounting for PV. It's nice to profit from that now and later in life, but I still believe that we, as a society, would have benefited more from improving a MFH and sharing the lower energy consumption with some tennants)

Wris1951
0 replies
9h14m

As of my last update in January 2022, I cannot access or retrieve specific articles or content from external sources like eidel.io. However, I can provide you with a general outline of the steps typically involved in founding a company in Germany based on common procedures. Here's a simplified guide:

1. *Choose Your Business Structure*: Decide whether you want to establish a sole proprietorship (Einzelunternehmen), a partnership (Gesellschaft bürgerlichen Rechts - GbR), a limited liability company (Gesellschaft mit beschränkter Haftung - GmbH), or another legal form.

2. *Business Name*: Choose a unique business name and check its availability. You can do this through the German commercial register (Handelsregister).

3. *Articles of Association (Gesellschaftsvertrag)*: Draft and notarize the articles of association if you're forming a company with others.

4. *Capital Contributions*: Determine the initial capital required for your business structure. For example, a GmbH requires a minimum share capital of €25,000.

5. *Register Business*: Register your business with the local trade office (Gewerbeamt) if it's a sole proprietorship or partnership. If you're forming a GmbH, you'll need to notarize the articles of association and register the company with the local commercial register (Handelsregister).

6. *Taxation Registration*: Register your business for tax purposes at the local tax office (Finanzamt).

7. *Obtain Necessary Permits and Licenses*: Depending on your business activities, you might need specific permits or licenses. Check with the relevant authorities.

8. *Social Security*: If you plan to employ people, you'll need to register with social security agencies.

9. *Employment Contracts*: Draft employment contracts if you're hiring employees.

10. *Open Business Bank Account*: Open a business bank account to manage your finances.

11. *Insurance*: Consider necessary insurances such as liability insurance, health insurance, etc.

12. *Data Protection Compliance*: Ensure compliance with data protection regulations, especially if you're handling personal data.

13. *Employer Obligations*: Understand and fulfill your obligations as an employer regarding taxes, social security contributions, etc.

14. *Ongoing Compliance*: Stay compliant with ongoing obligations such as filing annual reports, tax returns, etc.

Remember, these steps may vary depending on the type of business you're starting and your specific circumstances. It's advisable to consult with legal and financial professionals to ensure compliance with all legal requirements.

Bishonen88
0 replies
11h8m

Waiting 2.5 years for an Einburgerung. Read online, that other people submitting papers now, get that done in 1-2 months. Supposedly there are people that contacted the government asking about that discrepancy (2+ years vs months) were told that they should re-submit their papers... Paying twice...

Aissen
0 replies
8h7m

And I thought France had it bad… There are a lot of hoops to jump through when owning a company in France, but the creation is the "easy" part. And we got rid of the minimum capital many years ago. A good accountant will even guide you through all of it (but it will be expensive).