Hi there all in NL!

We are a UK couple (29 and 25) who will be moving to Germany next week to start work as freelancers there. I will run a language school and my partner will teach for me. We are not employed in Germany, just have most clients there.

In the last few days, I have been looking over this site, and it seems to make much more sense to actually live in NL (we are 25 mins from the border) and work in Germany.

I know this is fine from a logistics point of view, but I am trying to find about taxes, pensions etc.

I know we are not eligible for 30% tax ruling, but are there any other interesting, attractive reasons why we should cross the border, apart from the fact that the Dutch are a lot nicer than the Germans?!

Would we still have to pay pension contributions, or would we be exempt in NL?

I look forward to any replies you guys can give, I really want to move to NL!

(Just to let you know, our joint Health Insurance contribution in Germany is €400 p.m together and pension contribution is 19%, YES 19% of your wage.

Please give me some good news so we can start to prepare!

Thanks so much in advance.

Blue

Are the Dutch nicer than the Germans?

No, seriously, I hadn't heard that!

Personally, I'd rather immerse myself with the people I'd be teaching. And I would think the taxes are higher here, but I may be wrong...

All I can say is there's a good reason why every second business in the Netherlands is an Accountancy firm.

Don't walk through a minefield without a very experienced guide.

Nope, taxes & pension costs are higher in Germany and the German health insurance is at least the double of NL.

I once considered moving to Berlin, but I gave up because I spent the best part of 2 years researching everything & all the costs but realised it would be much better to remain in NL, despite higher housing costs.
Another thing I wasn't keen on about Germans is their obsession with using titles & surnames for just about everyone including colleagues! I don't mind the obvious but colleagues? no way! at least Dutchies are much less formal.

So, I'm glad I stayed here in the end.

That's really interesting and good to know, thanks!

At least it's close enough to visit when you need a break...

I forgot to mention, I said taxes are higher in Germany, but the German dole/unemployment benefit is much lower than NL and there's a solidarity tax, that's what everyone has to pay for the rebuilding of the former DDR!

German taxes and all the other costs are a big scam & joke, don't be fooled into thinking it's great just because rent/house prices are generally very cheap, there's a reason for it and there can be many nasty financial surprises.

Thanks so much Illuminatus!

I am shocked how much we have to pay per month for health insurance in Germany.

And yes, the house prices are lower, but there are so many other costs here.

Does anyone have any cost sheeets that they may have done before going to the Netherlands regarding insurance, pension contributions, tax bands etc..?

What a great forum this, and so much ncier than most forums!

Illiminatus, are you registered with Toytown Germany too y any chance?

Thanks agin for your thoughts, the points are really decisive for us. We live in the Emsland (Lower Saxony) and could move to Denekamp, just over the border, and still only be 25 mins from work.

Thanks again for any thoughts/suggestions/costs that anypone can contribute,

I am so glad to have found you!

Blue

Blue,

please be careful in your choice. Whilst there is a lot of advantages when being resident in the Netherlands, bear in mind that income tax rule applicable is determined in which of the neighbouring jurisdiction the income is generated. If the core of your business is domiciled in Germany and the place for rendering service is Germany too, relocating your household will not excempt you from German tax regime. Whilst you may enjoy certain relief concerning social contribution, if more than 50% of your income as well as more of 50% your time to generate this revenues is spent on German soil, you will still remain a German tax payer. As border crossing commuters usually have certain priviliges bypassing the source rule, you better consult the authorities whether such "kleine Grenzverkehr"rules may apply for you

You may find these links useful:

http://en.wikipedia.org/wiki/Income_tax_in_the_Netherlands

http://www.belastingdienst.nl/

As for Toytown Germany, yes I am registered, and from what I read I'm still horrified as to how much people (especially freelancers) are paying for health insurance, that's the main reason why I chose not to move to Berlin in the end.