How to Open a Bank Account in Germany
If you are planning to relocate abroad, you should consider how to open a bank account in Germany for non-residents. Setting up a German bank account might not be absolutely necessary, as you can probably get away with managing your finances solely online by using your account from back home. Despite this, if you want to save on fees for international payments, you can open a bank account in Germany with one of the country’s many reliable institutions.
When you arrive in Germany, if you simply want an account with a reliable, trustworthy bank, you can join a Sparkasse—these are banks run by the state. Joining allows you to withdraw cash from any Sparkasse in the country with no extra charges. Another plus point is that there are several branches of these banks in towns and villages, so you should be able to visit one in person if you need to.
Nevertheless, one downside of Sparkassen is that, as an expat, you might run into bureaucratic problems. These banks do offer modern banking options, like online banking and mobile apps. But be prepared to pay about 3 EUR (3.40 USD) per month if you want an individual Sparkasse account with online banking available.
Bank Transfers
In Germany, one of the most common forms of transaction is a bank transfer (Überweisung). You need the following information to complete a bank transfer:
- Name of the account holder.
- Account number (Kontonummer) or an IBAN code for international transfers.
- Bank routing number (Bankleitzahl) or a BIC or swift code for international transfers.
- Name and location of the bank.
Standing Orders
The same procedure applies to schedule a standing order (Dauerauftrag). A standing order is a regular payment you can set up to pay other people, companies, or send money to your other accounts. This sort of payment can be changed or canceled whenever you want, while a direct debit is set up by the organization to which you are making a payment.
Einzugsermächtigung
Another common method for financial transactions is the Einzugsermächtigung (direct debit authorization): you give permission to the recipient’s bank to withdraw an agreed sum from your account on a regular basis.
This authorization is used for regular payments where the amount varies (e.g., for phone bills and other utilities). You can revoke the permission at any time and it is also possible to reverse recent payments.
The way electronic financial transactions are processed is currently changing throughout Europe. The Single Euro Payments Area (SEPA) was created to establish one electronic payment system across the entire EU (including Iceland, Liechtenstein, Monaco, Norway, and Switzerland).This means that since 1 February 2014, the IBAN and BIC are required for all bank transfers and direct debits in these countries, including domestic transfers. A money transfer within Germany takes two or three business days and is usually free.
Opening a Bank Account Online in Germany as a Non-Resident
It is possible to open a bank account with a Germany-based bank as an expat and non-resident before you claim Permanent Resident status. Nevertheless, you will have to be in Germany to do so.
If you prefer to open an account as a non-resident at a traditional, physical bank, and get face-to-face advice and service, be aware of any relevant bank fees or minimum deposits you might have to pay. You might need to be employed so you can make deposits of at least 1,000 EUR (1,110 USD) per month at banks that require this level of minimum monthly deposit.
There are alternatives to brick and mortar banks, though. Opening a mobile account with some of the best online banks available in Germany might be a good and fast option. There are several excellent services which allow you to receive your salary and organize your finances via your mobile device. However, the process might be easier overall if you speak and understand German.
PostIdent
If you are going to sign up for a bank account online, you will need to prove your identity. For this, you can do the PostIdent.
- First, you need to take your passport, national ID card, or student registration to a local post office in Germany with your printed identity verification bank form.
- You will have to sign a document there which will be sent to the bank.
Your bank should cover the cost of the PostIdent process. You can also confirm your identity online with Deutsche Post. If you have access to a lawyer, they can also verify your identity. Your lawyer will need the same identity verification form plus one of the forms of ID mentioned above.
The Best Online Banks in Germany
If you need to apply for a bank account online and/or you want an account with digital services, it is worth researching the followings banks:
- Comdirect
- DKB
- Fidor Bank
- Deutsche Bank
- N26
You might also be able to open an account with these banks before you arrive in Germany. If you don’t want to navigate bank account terms in the German language, Comdirect and DKB might not be for you—they generally don’t offer an English sign-up process.
Bank Fees and Minimum Deposits
As mentioned earlier in this section, some local German banks will require you to deposit a minimum amount each month and this amount can reach 1,000 EUR (1,110 USD) or more. But if you have a job in Germany that pays you at least this amount, you will be fine! The minimum wage is 1,584 EUR (1,450 USD) a month or 19,008 per year (20,700 USD).
Many banks will charge you a small fee each month to use their services. Most currently have negative interest rates too, making it hardly worth saving, as your money will not accumulate interest. However, monthly fees are usually no more than 5 EUR (5.60 USD). Netbank and Postbank charge 4.85 EUR (5.40 USD) and 1.90 EUR (2.10 USD) per month respectively.
No-Fee Bank Accounts in Germany
- Commerzbank is free unless your balance falls below 1,200 EUR (1,360 USD)
- ING DiBa
- N26
- DKB
- Comdirect
Students’ “Blocked” Accounts
Foreign students coming to Germany need to demonstrate they can support themselves financially while they study in the country. Part of this often involves opening a “blocked” bank account and depositing at least 10,236 EUR (11,390 USD) in it. Students cannot access this account until they are in Germany, and then they can withdraw up to 853 EUR (950 USD) per month.
Required Documents to Open a Bank Account as a Non-Resident
Once you are living in Germany, it should be easier for you to set up an account with a local bank or Sparkasse. Remember, you will need to verify your identity and be subject to a credit check. To apply for a bank account in Germany, you need the following documents:
- Your ID card or passport
- Proof of address registration or Meldebescheinigung (a registration certificate you must get within 14 days of living at your new address in Germany)
- German tax ID number
You may also need:
- a residence permit;
- an employment contract.
Students will require:
- proof of home address;
- a foreign tax identification number.
Find out with your chosen bank which other documents you need so you do not waste your time. If you are already employed, you might need to take pay stubs or a copy of your employment contract.
The Best Banks in Germany
It is not easy to grow your savings in German banks at the moment. Interest rates at numerous German banks are in negative numbers, partly due to the European Central Bank’s low interest rate policy. In fact, the average interest rate at banks in Germany is only 0.14%. So, you might want to choose your bank based on its convenience, additional services—such as internet banking—and/or reputation.
The Top Banks in Germany Listed
- Deutsche Bank
- Commerzbank
- KFW Bankgruppe
- DZ Bank
- Landesbank Baden-Württemberg
If none of these banks seem suitable, you could look into German Sparkasse branches that are located throughout the country.
International Banks in Germany
Frankfurt is home to the most foreign banks, including US giant Goldman Sachs and the Royal Bank of Scotland, living up to its reputation as the financial epicenter of Germany. Below you can see more international banks in different German cities:
Frankfurt
- BNP Paribas
- Credit Lyonnais
- ING Group
- Merrill Lynch
- State Bank of India
Mönchengladbach
- Banco Santander
Hamburg
- Barclays Bank
- Handelsbanken
- Hanseatic Bank
- Lazard
Berlin
- Lloyds Banking Group
Cologne
- Vakifbank
Düsseldorf
- Citibank Privatkunden
- Mizunho Bank Ltd.
- MUFG Bank
- Sumitomo Mitsui Banking Corporation
- Targobank
Eschborn
- ICICI Bank
Munich
- UniCredit Bank AG
What is the Tax System in Germany?
The tax system in Germany is what is called “progressive”, meaning the amount you pay will increase the higher the tax bracket you fit in to. Tax rates range from 0% to 45%. Married couples who file their taxes together also benefit from more favorable rates than single taxpayers.
The tax year runs from January 1st to December 31st and you can file your tax returns up to May 31st.
What is the Income Tax in Germany?
The data below shows individuals’ eligibility to contribute PAYE tax in Germany.
IncomeTax RateUp to 9,408 EUR (10,465 USD)No tax9,408 EUR and over14% tax57,051 and over42% tax270,500 and over45% tax
A married couple with a joint tax return and an annual income lower than 18,816 EUR (20,930 USD), will not be eligible to contribute PAYE taxes in Germany.If you earn more than 57,051 EUR (63,600 USD) but less than 270,500 EUR (300,890 USD) per year, your earnings are subject to a tax rate of 42%. For incomes over 270,500 EUR (300,890 USD), the highest tax rate of 45% applies. You can calculate your income tax with this official wage and tax calculator.
In addition to the Lohnsteuer (the wage tax that your employer deducts from your salary each month), you have to pay the so-called “solidarity surcharge.” This is 5.5% of your basic income tax. Those who pay up to 972 EUR (1,100 USD) in income tax or up to 1,944 EUR (2,200 USD) if you are a married couple, do not have to pay this additional charge.
The solidarity surcharge is expected to generate 20 billion EUR (22.25 billion USD) for the German federal government in 2020. The surcharge was brought in in 1991 to cover the costs of the reunification of the former East and West Germany and the Gulf War. It also supports countries in central, southern, and Eastern Europe.This tax was supposed to be temporary, but despite arguments to abolish it there hasn’t yet been a decision to terminate it. In November 2019, the federal cabinet proposed eliminating the tax for 90% of people who currently pay it while another 6.5% would see their surcharge reduced. The charge has already been reduced from 7.5% in 1997 to the 5.5% rate levied today.
Types of Taxes in Germany
Your tax obligations in Germany will vary depending on if you are employed or self-employed, single or married, and your income. If you are going to work for a company then you will pay income tax and social security contributions, but you don’t need to worry about filling out forms because your employer does that for you. If you are self-employed, you will need to do your own tax returns.
Self-Employment Tax
Taxes for self-employed people in Germany are quite straightforward. You must inform the German tax authorities and file a tax return once a year. The process is as follows:
- First, register with your nearest tax office in Germany. Search for your nearest office on the Federal Central Tax Office’s website.
- Next, fill in the Fragebogen zur Steuerlichen Erfassung registration form and submit it at the local tax office.
- Receive your German tax number (Steuernummer) and VAT number two to four weeks later.
- Include your tax number on any invoice you send.
- File your tax return online via Elster, “your online tax office.”
Visit bundesfinanzministerium.de for explanations and help with filing your tax return.
Church Tax
If you were ever christened or baptized, you are automatically eligible to pay church tax (Kirchensteuer) in Germany unless you opt out. Church Tax is 8 or 9% of your annual income tax liability, depending on where you live.
To opt out, you must technically “leave the church.” Just deciding to stay at home on a Sunday instead of going to church is not enough. You have to leave officially—this involves going to your Standesamt (civil registration office) or Amtsgericht (official court) and paying up to 31 EUR (35 USD), as well as bringing your ID and Meldebescheinigung (certificate of registration of living at an address in Germany).
If you are married, you must also bring your Heiratsurkunde (marriage certificate). Note that if you receive a letter or questionnaire from the church-tax office or Kirchensteuerstelle, you are not legally obligated to complete and return it.
Tax-relevant information on employees, such as how many children they have or their religious affiliation, is registered on their electronic tax card (elektronische Lohnsteuerkarte).
You just need to provide your employer with your tax identification number and date of birth. Then they can access all your relevant tax information from the German central revenue service (Bundeszentralamt für Steuern) and add you to the company payroll.
Corporate Taxes
The national corporate tax rate in Germany is 15%. Other corporate taxes are:
- Municipal tax: 14-17%
- Real property tax: 0.35% multiplied by the local coefficient
- Real estate transfer tax: 3.5-6.5%
Social Security
Anyone working in Germany pays 14.6% of their salary to social security to cover necessities, such as health insurance, and invalidity insurance. The contributions to that 14.6% are as follows:
- Pension insurance is 18.7%, of which 50% is paid by the employee.
- Unemployment insurance is 2.55%, of which 50% is paid by the employee.
- Health insurance is 14.6%, of which 50% is paid by the employee.
- Long-term care insurance, which supports those who have a severe long-term health condition, makes up 3.05%.
Pension Refund
A tenth (9.3%) of your monthly salary is automatically transferred to the German Pension system. If you are a non-EU citizen, you might be able to apply for a lump sum refund of these contributions and don’t have to wait until you reach retirement age. Check if you are eligible for a refund with this free eligibility check.
FAQs
Do I need a tax number to open a bank account in Germany? ›
To apply for a bank account in Germany, you need the following documents: Your ID card or passport. Proof of address registration or Meldebescheinigung (a registration certificate you must get within 14 days of living at your new address in Germany) German tax ID number.
Do you get taxed for opening a bank account? ›Unfortunately, checking accounts aren't tax-exempt; all interest should be reported as ordinary income. This may come as a surprise if you haven't been getting tax forms from your bank. But financial institutions only have to send form 1099-INT to customers who generate more than $10 in interest.
What are the requirements for opening a bank account in Germany? ›To open a bank account, you usually require the following documents: a valid passport, a residence permit, a certificate of registration, and a wage statement (depending on the type of account).
Can a US citizen open a bank account in Germany? ›Yes, foreigners can open German bank accounts. However, you'll often be asked for a German proof of address, or at the very least an address from another Eurozone or EEA country. If you're still based in the US a flexible multi-currency account from a specialist provider like Wise or Revolut may be a better option.
Can I open a bank account without tax number? ›What happens if I don't add a Tax File Number (TFN)? Withholding tax may apply to interest earned on your account(s) unless you've provided us with your ABN, TFN or TFN exemption. You're not obliged to provide your ABN, TFN or TFN exemption but if you don't, we're required by law to withhold tax.
Can you open a bank account without a tax file number? ›When you start a job or open a bank account in Australia you'll be asked to supply your TFN. Although you're not required to provide a TFN to open an Australian bank account, if you don't provide your TFN, we're required by law to withhold tax.
What bank account to avoid taxes? ›Tax-Advantaged Savings Accounts
The major tax-advantaged savings account options are: Roth Individual Retirement Account (IRA) or Roth 401(k): Interest earned in a Roth account is not taxed until it is withdrawn. And, if you are older than age 59 ½, you will owe no income taxes at all on the interest.
A Tax-Free Savings Account (TFSA) is a registered tax-advantaged savings account that can help you earn money, tax-free. You can think of a TFSA like a basket, where you can hold qualified investments, that may generate interest, capital gains, and dividends, tax-free.
How much money do you have to have in the bank to get taxed? ›Once you hit the threshold of $10, it will be reported to the IRS and there is no way around paying the tax. However, there are two ways to avoid paying taxes on the interest earned in your savings account.
Can a non resident open a bank account in Germany? ›Although it is theoretically possible for anyone to open a business account with any bank, non-German citizens who don't reside in Germany can usually only open accounts with so-called direct banks (Direktbanken).
How much is it to open a German American bank account? ›
| Minimum to Open | $100 | $100 |
| Monthly Service Fee | For a low $7.00 account maintenance fee, this account can pay for itself if you use the benefits. | Enroll in eStatements to avoid a $3 monthly paper statement fee. |
| Learn More Open Account | Learn More Open Account |
Documents You'll Need To Open A German Bank Account
German residence visa; The completed account application form; An Anmeldung (proof of address); Proof of employment or income.
Commerzbank
For the third year in a row, it was voted the best branch bank in 2020. It is a private bank and part of the Cash Group (Commerzbank, Deutsche Bank, HypoVereinsbank & Postbank). In the past years, Commerzbank has invested heavily to keep up with current trends and to also appeal to foreigners.
And, while it is absolutely legal to own a foreign bank account, there are some additional reporting and tax requirements that US persons should be aware of so that they can remain in IRS tax and reporting compliance and avoid unnecessary fines and penalties.
How much tax do I pay on a savings account in Germany? ›Tax on savings and investments
Savings and investments are subject to tax in Germany. Income from dividends and interest are taxed at a flat rate of 25%. Single taxpayers have an annual investor's allowance of €801.
FAQs on Open Bank Account Online Free
Yes, you can do it with no money. However, the bank may require you to deposit a certain amount of money into the account in order to start using it. Some banks have no minimum deposit requirement, while others may require a minimum $500 or more deposit.
Tax file number (TFN) withholding tax
If your bank doesn't have your tax file number (TFN), it will withhold tax from your interest at the highest marginal tax rate. You can claim a credit for the amount of tax withheld when you lodge your tax return. You don't need to provide your TFN if: you are under 16 years of age.
If you don't have a bank account, you can pay using another person's credit card. If you're expecting a refund, you can have the check mailed.
Can you open a bank account without a SSN or tin? ›Can I open a bank account without a SSN? Yes, it's possible to open a bank account as an undocumented immigrant or without having a Social Security number. You'll need to provide other forms of proof of ID, such as a passport, driver's license, consular ID or birth certificate.
Can the IRS clean out your bank account? ›If there is no conflict in ownership, then after the 21 day period, your bank will send those funds over to the IRS. They are able to levy up to the total amount you owe in back taxes, and the bank must comply. For many individuals, this might mean everything in their entire bank account is completely seized.
How much can you put in bank without IRS? ›
We're here to help!
A cash deposit of more than $10,000 into your bank account requires special handling. The IRS requires banks and businesses to file Form 8300, the Currency Transaction Report, if they receive cash payments over $10,000.
If you plan to deposit a large amount of cash, it may need to be reported to the government. Banks must report cash deposits totaling more than $10,000. Business owners are also responsible for reporting large cash payments of more than $10,000 to the IRS.
What are the disadvantages of a tax free savings account? ›| TFSA | |
|---|---|
| What are the tax advantages? | Your money grows tax-free; you pay no tax on withdrawals. |
| What are the tax disadvantages? | Contributions are not tax deductible. |
| What are the withdrawal rules? | Tax-free, at any time and for any purpose (subject to any specific investment terms). |
Open an online account in just 8 minutes—all you'll need is your smartphone, a valid address in Germany, and a valid photo ID. You'll get an official German IBAN, so you can pay and be paid like a local.
Can a US citizen open a bank account in Europe? ›It's possible to open a bank account in Europe for many US citizens. However, providers, such as Wise offer multi-currency accounts in several different European currencies. You can also get a card that lets you spend like a local in over 170 countries.
Can you keep your German bank account after leaving Germany? ›Bank Account: Can you keep your German bank account when leaving Germany? Yes, you can. And you should certainly keep it at least a few months until after you have left Germany since you will still need it for some transactions after you leave (e.g., your last electricity bill, your deposit from your landlord, etc.).
Which bank is best for US citizens in Germany? ›If you speak German, look at DKB and ING. People often recommend them. If no banks accept your passport, try Deutsche Bank. Online banks like bunq, Monese, Revolut and Wise also accept more passport types.
How much does it cost to have a bank account in Germany? ›However, current accounts in Germany can range from none to 5€ per month. Although debit cards are typically free, credit cards can go up to 100€ per year. The cost of using ATMs depends on the bank your account belongs to. Typically, using an ATM is free.
What is the limit for German American Bank? ›Depending on your qualifications, most customers are eligible to deposit up to $4,000 per check, up to $4,000 per day, and up to $20,000 in a 30 day timeframe. How much does it cost to deposit a check using Mobile Deposit? Mobile Deposit is free to German American customers.
Can I live in Germany without address? ›Registering your address in Germany is mandatory.
By law, everyone staying longer than three months in Germany must register their address (anmelden) within 14 days of moving into a new apartment. Not registering your address within 14 days can result in a fine of up to €1,000.
Can I keep my German bank account if I move abroad? ›
Many expats prefer to keep their German banking account(s) even after they have left the country. In any event, it's a good idea to keep your account at least for several months after you leave, in order to pay last-minute expenses and take care of other financial matters.
Can I register in Germany without an address? ›By law, you need to register within 14 days of moving into your new address in Germany. If you don't yet have a fixed address, registering can be tricky, as one of the documents required to register is a confirmation of residence signed by your landlord.
Are there any American banks in Germany? ›us bank Frankfurt, Hessen, Germany.
Is there a bank of America in Germany? ›Whatever your needs, a Bank of America financial center with walk-up ATM in Berlin can help. Stop by a local branch or make an appointment today.
Which is the safest bank in Germany? ›The best bank in Europe is KfW in Germany, which was voted number one in the list of the 50 safest banks in Europe 2023.
What countries don t report to IRS? ›Bermuda, Monaco, the Bahamas, and the United Arab Emirates (UAE) are four countries that do not have personal income taxes. If you renounce your U.S. citizenship, you may end up paying a tax penalty called an expatriation tax.
How much money can a US citizen have in a foreign bank account? ›If you exceed the $10,000 threshold, you must report all foreign accounts, not just any single account that exceeds $10,000.
Do I need to report foreign bank account to IRS? ›Per the Bank Secrecy Act, every year you must report certain foreign financial accounts, such as bank accounts, brokerage accounts and mutual funds, to the Treasury Department and keep certain records of those accounts.
Can I open a bank account in Germany without tax ID? ›To apply for a bank account in Germany, you need the following documents: Your ID card or passport. Proof of address registration or Meldebescheinigung (a registration certificate you must get within 14 days of living at your new address in Germany) German tax ID number.
Is there a tax-free savings account in Germany? ›The tax-free allowance on capital gains is up to 801€ for singles and 1602€ for couples. These tax-free allowances can be split and claimed for savings held at several different institutions. You can change your tax exemption order at any time or just keep it as it is.
Do I need to pay tax on money in a savings account? ›
The money invested into a tax-free savings account is not subject to tax on any interest, dividends, capital gains and withdrawals, unlike a regular savings account.
Can I open a bank account in Germany as a foreigner? ›Although it is theoretically possible for anyone to open a business account with any bank, non-German citizens who don't reside in Germany can usually only open accounts with so-called direct banks (Direktbanken).
How do I get a tax identification number in Germany? ›Go to your local tax office in Germany.
You can also obtain the tax identification number online (on the Office's website – https://www.bzst.de/), by e-mail (info@identifikationmerkmal.de) or by phone (the numbers can be found on the Office's website).
No, your social security number is not the same as your tax ID number, and they are issued by different government departments. But your employer will need both of these numbers from you. Your tax ID, or Steueridentifikationsnummer (IdNr), is issued by the Federal Central Tax Office, Bundeszentralamt für Steuern.
Why do bank accounts need your tax file number? ›If your bank doesn't have your tax file number (TFN) it will withhold tax from your interest at the highest marginal tax rate. You can claim a credit for the amount of tax withheld when you lodge your tax return.
Which bank is best in Germany for non residents? ›- N26.
- Deutsche Bank.
- Commerzbank.
- ING.
- *Wise and *Revolut do not ask for a registered address according to some sources. source
- *bunq.
The tax number (Steuernummer)
It's a 10 or 11 digit number, and has the format "12/345/67890". It's sometimes written as "3012034567890" (the first two digits are the number of your Bundesland1, 2).
2–4 weeks after your address registration, you will receive your personal tax identification number automatically by post. Newborn children also receive their tax identification number automatically. Usually you can find your tax identification number: in your income tax assessment.
What is the difference between tax number and tax ID in Germany? ›Opposed to the Tax ID (TIN) which is a permanent and personal Tax Identification Number, the Tax Number is for freelancers and businesses. The Tax Number is referred to as Steuernummer, Steuer-Identnummer or St-Nr.
Can you use SSN instead of tax ID? ›A sole proprietor without employees and who doesn't file any excise or pension plan tax returns doesn't need an EIN (but can get one). In this instance, the sole proprietor uses his or her social security number (instead of an EIN) as the taxpayer identification number.
What is the German version of SSN? ›
What is SSN called in Germany? The German SSN is know as “Sozialversicherungsnummer“. It's a unique 12-digits identifier, assigned at birth or when your first register with health insurance.
What is SSN called in Germany? ›In German, it's called Sozialversicherungsnummer, Rentenversicherungsnummer, SVNR or RNVR. It's sometimes called Versicherungsnummer, but this could mean something else, like your health insurance number. In English, it's called pension insurance number, social insurance number or social security number.
How do banks verify tax documents? ›You'll need to fill out form 4506-T from the Internal Revenue Service (IRS) to release your tax transcripts to the bank. Your tax transcripts is a verified method to show what your income was for a specific year. It comes directly from the IRS, so there's no question that it's true information.