Today I want to share 10 years in Germany has taught me. I came to Germany in October 2015 and you know what? I’m still learning things I wish I had known on day one.
Sometimes it’s funny, but mostly it’s frustrating. Imagine discovering something that could have saved you months of stress only after you’ve already gone through the stress. Classic Germany, right?
So in this guide, I’ll share what 10 years in Germany has really taught me.
Never Sign Contracts
When we first arrive in Germany, we’re all focused on the basics, finding housing, getting a SIM card, maybe setting up internet. And in the excitement, we usually just skim through the contracts. Read the headline, ignore the fine print, and think, “Yeah, yeah, it’ll be fine.”
But listen carefully: if there’s one thing you take away from my experience of 10 years in Germany, its never sign a contract in Germany without reading it properly.
Seriously. If Germany had a national sport, it wouldn’t be football, it would be writing long, complicated contracts.
And the problem is once you sign, you’re locked in. Doesn’t matter if you misread it, or if it was hidden on page 27 in size-6 font. In Germany, a signature is a signature, but there is a way to get out of contracts which ill share in a bit but
Why most expats in Germany fall into this trap
Let me give you a common example. You see a flashy ad for the latest iPhone. The deal looks amazing: just 30 euros per month. You sign the contract, happy with yourself. Fast forward one year later, and suddenly your bill jumps to 90 euros per month.
Surprise! That “deal” was only for the first 12 months of your two-year contract. And there’s no way out. You’re stuck.
And it’s not just phones. The same thing happens with apartments, internet providers, or even gyms. Break the contract, and you’re the one in legal trouble not the company.
So what can you do? The golden rule: never sign on the spot. If a salesperson says, “This is a one-time deal,” trust me that’s exactly the deal you don’t want. Always take the contract home, read it, or get someone to check it for you before signing.
Related Guide: Tax Return Deadlines in Germany: What Expats Really Need to Know
10 years in Germany and I still fell for this
And hey, I wish I was just preaching here. But nope I fell into this trap myself. Last year, I thought my gym contract had a one-month cancellation period.
Perfect, right? Well, turns out it’s not one month. It’s twelve weeks before the renewal date. Guess what that means? I missed the deadline, and I was stuck paying for another entire year. But thankfully if you sign a new contract, you generally have 14 days to cancel a contract, but when that period starts depends on the type of contract.
Contract Cancellation period in Germany
For a purchase contract, the 14-day cancellation period begins the day after you receive the goods. If the order comes in multiple packages, the period starts the day after the last package arrives. However, for a subscription, it starts after you receive the very first delivery.
For service contracts or contracts for utilities like gas and water, the period begins the day after the contract is signed. The seller must also provide you with a cancellation policy, and the cancellation period only begins after you have received this information.
So yeah contracts in Germany come with rules, sub-rules, and then some extra fine print just for fun. And speaking of rules… nothing represents German rules better than insurance.
What 10 years in Germany taught me about Insurance
Ah, Germany. The land of bread… and insurances. If you can think of it, there’s probably an insurance for it. Lost your socks? Maybe not yet. But give it time.
The social insurance system here stands on five pillars:
- Health Insurance
- Nursing care
- Pension Unemployment
- Accident insurance
If you’re an employee, student, intern, pensioner, or getting unemployment benefits, congratulations you’re automatically covered. You didn’t even have to sign anything.
Related Guide: Financial Planning for Expats in Germany
The most important Non-mandatory insurance in Germany
There’s one insurance that isn’t mandatory but is more important than some of the mandatory ones. Not having it can cost your thousands of euros.
And it’s called PrivatHaftpflichtversicherung or private liability insurance. Now, this might sound boring at first… but trust me, it’s the most important insurance in Germany right after health insurance. And more than 40 million people in Germany already have it, even though it’s not mandatory.
Why? Because in Germany, if you accidentally cause damage even if it’s small, even if it’s a total accident, you are fully responsible.
That’s the law. And the consequences can be brutal. We’re not just talking about paying for a broken phone screen. In the worst case, you could lose your house, your savings, even future inheritance or lottery winnings basically everything you own.
Why Private Liability insurance in Germany is so important
I know several real-life cases in my 10 years in Germany where people’s lives were turned upside down. Just because they didn’t have this one insurance. Let me tell you one that stuck with me.
Back at university, a girl I knew just wanted to take a bath. She turned on the hot water but since the building was old, it took forever to warm up.
So, she left for a few minutes to cook. When she came back, the bathtub was overflowing, water had leaked through the floor, and the old building was seriously damaged.
It wasn’t even her fault in the sense of being careless, it’s something that could happen to anyone. But because she didn’t have private liability insurance, she had to pay for all of it. And we’re not talking hundreds of euros. We’re talking thousands. She was devastated.
But there IS good news, You can protect yourself easily. Personal liability insurance usually costs only 2 to 5 euros per month the price of a coffee. And it covers you against exactly these nightmare scenarios. Honestly, it’s the one non-mandatory insurance I’d call mandatory for your sanity.
Get Private Liability Insurance in Germany
Investing in Essentials
Now, let’s talk about essentials. Shoes, jackets, and pillows.
I used to think having 12 pairs of shoes was smart. It wasn’t. Turns out, 2–3 really good pairs are better. Same with jackets. Most newcomers buy one heavy jacket. Works in snow, but step inside a shop and you’re sweating buckets. That’s why layering is smarter.
And then there’s the pillow situation. The German 80×80 pillows?
Honestly, they’re like mattresses for your head. Back home I was used to having a stiffer foam pillow, an it was quite difficult to find something compared to that here. Your preference might be different So make sure you invest some money in a good pillow, I know 40 50 Euro for a pillow might seem high but trust me its definitely worth it!
As we are talking about investing let me share how I wasted almost 5 years of compounding returns.
Investing in the Stock Market
I came to Germany in October 2015. I bought my first stock in April 2020. That means I lost 54 months. And when it comes to investing, every month counts.
Most foreigners here don’t prioritize investing. But the truth is, the stock market is the best wealth-building machine humanity has ever created. And its not that difficult to get the ball rolling. Even if you are a student or unemployeed or on Spouse visa. You can get started with just 1€ per month.
Now dont get me wrong 1€ per month wont make you rich. This is just the starting point and with just 1€/month there is no excuse you can give.
Right now you can only afford to invest 1 , 10 or 50€ per month. But with time you will be able to invest more. Our goal here is to build a habit of investing, it should be something which is done automatically without you even doing anything. I really wish I knew someone who would have said this to me when I came to Germany.
Have an Emergency fund of 1 months expenses as a student, 3 months when you are an employee. Open a Commission Free Investing Account. Set up a savings plan in 1 to 3 well diversified ETFs. Don’t do stock trading unless you have loads of free time. That is it
Related Guide: Investing for beginners in Germany: How to get started
Get Help from the German Government
While we are talking about getting help, did you know that you can Get Help from the German Govenment?
This is something a lot of foreigners in Germany miss and it’s not really our fault. Because Germans aren’t exactly famous for their small talk or giving out “helpful tips.” Most of the time, they just assume you already know things. Because for them, it’s common knowledge.
But for us? Not so obvious.
How to Get a Free German Language Course
In my 10 years in Germany, one of the biggest hidden gems I have found is that the German government can actually help you yes, even if you’re a foreigner. And not just in one area, but in several.
Let’s start with the most important one: the German language.
If you’re moving from a student visa to a job search visa, this can be a lifesaver. The government will actually fund your language courses to help you land a job. Now, how much they cover depends on your district because of course, it’s Germany, so every district has its own rules.
But the key thing is: you can get funding. And in those crucial months when money is tight, saving that cash makes a huge difference.
Get a Free Educational Voucher from the German Government
Ever heard of the Bildungsgutschein? It literally means education voucher. And it’s exactly what it sounds like: free money for your education.
With this voucher, you can boost your employability with extra training whether that’s retraining, a partial qualification, or just adapting your skills to the German job market.
Of course, there’s a catch. To get this voucher, you need to meet certain requirements. That means sitting down with the German Employment Agency and having them evaluate your case. But if you qualify, you’ll get a voucher that’s usually time-limited, region-specific, and tied to a specific training goal.
Still, if you’ve lost your job after working here for more than a year, or if you’re on a spouse visa and need to upskill, this can be a game changer. It’s basically Germany saying, “We’ll invest in you, but only if you’re serious.”
And the government help doesn’t just come in the form of courses or training. There’s one more kind of support that hardly anyone talks about. It doesn’t just save you money it can literally put thousands of euros back into your pocket every single year.
Tax Optimization
Because I’m talking about taxes. Now, before you roll your eyes or skip this part, hear me out. In my 10 years in Germany, this is the most important Tax Optimization tip I have found out. If you’ve ever sent money back home to parents, grandparents, or even to support your spouse and kids, the German tax system has a way for you to actually claim some of that money back.
With this declaration you can claim up to 11 thousand euros per year. Now obviously there are certain conditions you need to fulfil which you can read in my Guide: Can People in Germany claim money sent to Relatives abroad?
Disclaimer: None of the content in this article is meant to be considered as legal, tax or investment advice, as I am not a financial expert or a lawyer and am only sharing my experience with stock investing. The information is based on my own research and is only accurate at the time of posting this article but may not be accurate at the time you are reading it.