Tax Man Cometh

For those of you with American Passports, you'll have to face the fact that we are one of the few (only?) countries that requires tax filing in the USA while living/working overseas.   The Treasury Dept, in all its wisdom,has continued to push this tax code as a way to stop Americans from hiding income overseas. 

If your company is about to relocate you overseas, be sure to request expatriate tax services as part of your package.  Maybe just ask for an additional $250 per yr toward those fees.   I don't think you'll get any support should you actually owe taxes in the USA for income earned overseas.   I found the big accounting firms have specialists and there are many smaller firms if you spend time to search them out. 

I had friends who said, "Hell with that, I'm not filing US Taxes"  and they did not for several years.  They never recieved letters or notices from the Treasury Dept.   They did hear this rumor that the US Treasury Dept was working closely with the US State Dept.   At some future date, if you decided to update your US Passport at an Embassy, you might denied due to failure to file.  I've never seen this in print but seems doubtful.    We cannot figure out who enters our airports or airplanes from terrorist watch-lists.  How are two seperate US agencies going to collaborate on tax filings?    Can this just be urban myth?   

Germany: Kindergarten with a Catch

When one moves overseas, to a country and culture, you start stages of acclimation.  You begin at the arrival, everything seems like a tourist attraction.  You move in/out of stores, neighbourhoods, and cafes with everything so new that you feel like it's a vacation.   You stumble through a German order at the markt or ask for a coffee but transactions are simple and conversation is brief.   Soon you discover that you'll actually have to understand all the terms of a car lease, an apartment rental or phone service that you really become confused and frustrated.   You finally move to a state of acceptance.  My time came when my son was signed up for Kindergarten.

After some weeks of research, we found a local Montessori school nearby.  It was clean, modern, and plenty of play space.  The teachers were very helpful in explanations of the schedule and parental commitment (in English) but made it clear our son would have to pick up German on his own.   What I mean to say is they would not coddle him with English every day.    That sounded just fine with us.

Upon signing the contract with the Montessori school, they requested a copy of my pay slip.   I thought this to be peculiar but they informed me that monthly school payment is determined upon my monthly income!!   I was really bothered by this approach as my success and subsequent income has nothing to do directly the needs/care of my son.   Likewise, why should I pay more than some other schlep when our kids are using the same resources at the Kindergarten.   It was a travesty; it was inequitable; it was socialism.    

Welcome to Germany. 

Time for Eating- German Style

I expect this will be the first of many posts on the joys of eating in Germany.   While Germany does not have all the tradition and elegance of the French, the cuisine is still pretty damn good!   This first 'foodie' post covers the rich history and fascination with meat.   If you want the quick insights into German diet of meat, I'd recommend the Jan, 2010 issue of Smithsonian Magazine.  The article is called,  "For German Butchers, A Wurst Case Scenario" The German butcher must work harder than ever to survive as the country shifts to vegan requirements during the last 20 years.  

The German butcher has the unusual custom of offering free slices of bologna or salami to the children.   Maybe this is the practice of 'get em hooked' when they are young but the kids really enjoy and expect the treat.  The diversity of meat in a butcher is like nothing I've ever seen before.   While my kids became very familiar with the sights, my visiting friends and family have never seen a full pig head, pig knuckle or cow tongue on display.   It really makes one pause and stare for a moment.  

During a Thanksgiving holiday in 2000, we invited my good friend Mike (an American) and his family over for dinner.  Mike insisted on getting the turkey.   He visited his local farmer, who raises turkey year round.  At 9AM that morning, he selected his bird (while it was still grazing in the pen), the farmer pulled it out back for immediate slaughter.   One hour later, Mike was at our front door with turkey and schnapps in hand. 

Ask yourself, when was the last time you'd actually seen a turkey alive?  Now, ask yourself, when was the last time you've seen one fresh...I mean really fresh!  Most of us get a frozen turkey each year and it was slightly unnerving to touch one that had a pulse only an hour ago.   Obviously, it made for some great conversation.    How's that for eating like the Pilgrims?

Shopping German Style

When my wife and I arrived in Germany, we had steep learning curve.  It was the stuff that people never really bother to tell you during the job interview.  As mentioned in previous postings, we arrived in our 2nd floor flat (really 3rd floor as Germans don't give ground floor a number) and tried to settle into by doing the first shopping excusion.   For you 'new' expats you won't appreciate the situation in the old days.  Things are easier for your now.

We had arrived in country on a Friday late-afternoon and searched out for pizza that first night.   After a late dinner, we settled in for the night and put groceries as first on the agenda for Sat  AM.    We woke around 10AM and with some leisure made our way to the shop by 11AM.   When we arrived, we quickly learned the shop was to close at 12:00 as this was a Saturday and Germans value their free time.   I remember rushing through the store trying to figure out brands, locations, and translations.   Things took a while but we made it to register with some time to spare.  

At the register, I proceeded to take out my Visa card.  That was met with some confusion and scorn by the cashier.  Then I pulled out American Express.  Everyone uses American Express.   I got the same look.   I could only yell out to the line behind me, "No Visa, no Amex, what gives?!"   I looked like a fool.   It got worse.  

We scrambled into our pockets and pulled out 20DM and this required the cashier to take items off the register total (which has reached 28DM).   This required a manager, a key, and some additional discussion.  People in the line were in shock when we removed diapers from our total.  

Now, my embarassment had just about reached it peak when we discovered that we needed our own bags to take the groceries home.   As I recall now, my wife carried 11month son home, while I placed all our groceries in his bassinet.   The Germans were probably laughing for days afterwards.  

About 2 years later, the grocery stores extended Sat hours to 2PM.   Furthermore, they all take EuroCheque (EC Card) which works like a debit card.   Tell me if you've experience any of the same? 

Plight of Expat Spouse - Part 2

For the record, my wife was entirely 'gung-ho' about moving overseas.   She had to quit her job, leave her friends, and stay home with kids.   In some part, I'm entirely to blame for my overzelous desire to move overseas.   I had to see the world, improve my career standing, escape the 2 hr daily commute, and test my skills with another culture.  

While you don't see it all clearly then, you need to come to the conclusion it's all about you.   Your spouse was dragged along for the ride.  They don't get to decide time, travel, living conditions, friends.  It has been decided for them by the constraints of the relocation and your job committment.   The spouse has a life where every day has a new challenge.  How to pay the bills, buy groceries in an unfamiliar language, work out directions in a new land, make new friends where there maybe little in common.  

Often, we'd hear stories of military wives who never left the base.  They had friends, movies, schools, stores all within the confines of the base and seldom ventured outside its walls.  I consider that an 'island of America' within a foreign country.  It's home but not real.  Adapting to and adopting with German society is painful. 

At my office, I failed to recognize that my wife required 2 hrs to find the right foods at the store.  She had to learn entire sections in the grocery store.  She had to find substitutes for American products that did not exist in Germany (Baking Soda).  Everyday required some challenge and life was not going to get any easier. 

Give your spouse lots of time to sound-off.   Don't travel extensively during the first 60 days.  Try to get help from others where/when you can.  Be patient. 

Plight of the Expat Spouse

My wife cried for several days after our arrival. She had every right to be scared and full of regret. After a 12 hr flight into Germany, the taxi (hired by the company) dropped us at the company sponsored flat. It was late on a Friday afternoon in early April. I rememer the shock upon entering the kitchen as there were 3 jars on counter (salt, sugar, pepper) and not a scrap of food in the fridge or on a shelf. There were no instructions or locations for local grocery stores, no directory of restaurants, no phone numbers for an emergency. We had figured that banks were closed by now, we were warned that most merchants don't accept Visa/Master Card.

It has the feeling of being abandon on an island and forced to survive upon 5lbs of baby food tucked deep within the luggage. It was a sobering moment for me personally and professionally. I came to the stark realization that my company knows nothing of expats and their family. They wrongly figure you'll get in, and get settled, just like any German family. In some ways, they had pushed us into an uncomfortable emotional state and we had to rise to the occassion.

Later that night Chris, a manager from the German office, called to see how we were settling in. I kept my composure during the call while all my emotional strength was focused on screaming. My wife had stopped crying and finally had fallen asleep. Chris told me of a local pizza parlor nearby and I found an ATM machine along the way. I'd been in town only 5 hrs and I'd gained a new appreciation of expat life.

You have about 10-14 days before that 'vacation' feeling will start to fade for your spouse.  That odd time when things stop feeling so abstract and you must figure out basic tasks (apartment hunting, bus routes, grocery shopping) for yourself.   This part can get really bothersome and frightful for your spouse, while you sit 9 hrs a day at the office. 

The time for sitting around has passed and now you must start entering the German society with all it's rules, customs, and patterns.    You and your spouse will have to move outside your comfort zone and start asking questions, start testing boundries of comfort, and start making a full effort at acclimation.

You need to get your spouse involved in daily activity.  Any activity that sets a routine and adds a level of purpose for each day.  All too often, the spouse has no other activity or support group and they are left feeling bored, angry, or resentful.   You need to help your spouse with this transition and give them a push out the door.   It's unlikely they will do it for themselves as it can look/fee to intimidating.  

A 1989 study by the Journal of Management, attempts to draw a connection between the capacity of an overseas expat manager and the ability for his/her spouse to acclimate to the new life.   Additionally, the adjustment of the manager is directly coorelated to the adjustment of the spouse.   It ain't all about the work!


Start here and start quickly.  Direct your spouse into:  
-Search out local expat support groups
-Bring your collegues over for dinner with their spouses
-Look for clubs/activities for the kids
-Publish a blog on the experiences

In Country, In Trouble, Incapable ?

You've figured out all the personal and professional reasons why working overseas is a wise move.  Now you need to get settled, get registered, and get ready.   You have period of several days where you will be torn between personal and business obligations.   You'll likely want to impress your employer during the first few weeks but also have a focus on getting your personal life in order.  This involves work permits, driver license, resident permit, health insurance, bank accounts, and many other German agencies.   If you have kids, this can be a tense several weeks.   I'd make three recommendations.

1) Give yourself 5 days in country to get paperwork processed, visit needed agencies, get unpacked, explore some of your surroundings.  
2) Your employer MUST assign someone to assist you with all the necessary documents.  There are lines in all these agency offices.  If you get it wrong, it's back of the line.  Many agencies open from 8am-1pm only.  The translation assistance is critical for time and your emotional state. 
3) Bring your personal file with you.  This includes all the passports, birth certificate, marriage licence, drivers license, letter of employment.  

I recall there was a sequence of visits to get through all German agencies effectively.   It goes like this..

- Get a formal letter from your German employer (Arbeitsbescheinigung) stating your employment start date and title.  Get is signed and stamped by a senior official in the company.   Everything requires a stamp!
- Take that letter to your local bank and set up an account.   You'll need a passport and a small deposit but this will get you started.    Bring this account information to your employer.  Keep the BLZ# and Account#.
- Visit the ArbeitAmt (Employment Office) and you need to get Application for Work (Antrag auf Arbeitserlaubnis).  Complete them with your employeer, have them stamp it and sign.  Bring all forms, employment letter, passport, bank account and visit the agency.  This is a two-year stamp so you'll need to keep copies of this paperwork. 
- Visit your BergerAmt and complete the Application for Residence Permit.  This will require passports once again and they will be stampted.   Before your departure from your home town, ask for an official (stamped!) letter stating you have no criminal record, warrants or infractions with the local Police Dept.  It will likely be used during this visit. 
- Visit agency for KinderGeld (if you have children) and register for this stipend.  This allows for added income for care and feeding of the children.  They deposit this in your bank account directly. 

Bring several additional passport size photos of yourself.  These will be attached to various files for German agencies.  Start early with the process, get your employer to provide assistance, be prepared to visit some agency offices more than once.   Take a deep breath and relax for it will be over soon.