Newbie question Cost of living - London/Frankfurt

[the rocker]

Hi everyone, a newbie to the site and to contracting, (2nd contract).

I'm in the process of negotiating a contract in Frankfurt (3 month rolling) and am being offered a rate of 530euro p.d.

The agency tells me cost of living etc in Frankfurt is lower than London, ( I find that hard to believe) anyone with any real life experience of the real situation?

Especially around net pay/accomodation costs etc, I have been netting off around 70% in UK what am I likely to net off in FRA?

I would probably go freelancer in germany unless someone can advise a good mgt company..

Thanks in advance

[BlasterBates]

Frankfurt in spite of the low pound is still cheap.

530 is a good rate

...and go Freiberufler, local German accountant

DO NOT USE A UK MANAGEMENT COMPANY OR A UK ACCOUNTANT.

You will net between 65-70%

DO NOT UNDER ANY CIRCUMSTANCES OPT FOR A TAX EFFICIENT SOLUTION.

[BlasterBates]

By the way I know someone, who as extensive secretarial experience, qualified in bookeeping, who would be very helpful to anyone new in Frankfurt. She speaks excellent English, and could prepare accounts, do the VAT etc, and liase with a Tax consultant for the end of year tax submission.

This would be cheaper than a tax consultant and you can always switch to one later on.

PM me for info.

[darmstadt]

Not a bad amount at all but living in Germany is very different to the UK. There are numerous websites with information regarding registering with the local authorities, social contributions (take care here as a new law has come in regarding health insurance in regards to foreigners working and living here), etc. I would read them all carefully, especially those produced by the German government and British consulates.

As for living in Frankfurt, it can be expensive especially to rent as not only will you have to pay 2-3 months rent as a deposit, if you use an estate agent then they're going to want a fair bit (around 1-2 months rent worth.) Then you've got all the contract crap with periods of notice, do you have to redecorate, etc. If you do you want to rent then look a little bit outside of Frankfurt where it will get quite a fair bit cheaper and the public transport is pretty good. Search for rented accommodation in Frankfurt or apartment/hotels which would be your best bet as they'll have all the amenities that you require, i.e. something like this

As already pointed out:

DO NOT USE A UK MANAGEMENT COMPANY OR A UK ACCOUNTANT.

DO NOT UNDER ANY CIRCUMSTANCES OPT FOR A TAX EFFICIENT SOLUTION.

[Little'Old Me]

DO NOT USE A UK ACCOUNTANT.

Up to a point that's a bit unfair...... , although having said that - I have been amazed how little knowledge many Accountants have about what the options are, and what can be done when another country is involved, so I can understand why you have made this statement.

I have had occassions when I have had to ask a client to obtain local help to ensure I can get the paperwork I need if they aren't out of the UK for more than a full tax year and they have gone ahead without checking with me first. (If you leave the UK on or after 6 April, you left a day too late to qualify for non-residency for that year.)

[BlasterBates]

no that isn't unfair.....just don't go there.

It would be like employing a German accountant to do your UK tax return.

If a UK accountant does offer it and he's reputable he'll be using a German accountant anyway and then charging double.

Nope.....don't even think about it.

[tim123]

As for living in Frankfurt, it can be expensive especially to rent as not only will you have to pay 2-3 months rent as a deposit, if you use an estate agent then they're going to want a fair bit (around 1-2 months rent worth.) Then you've got all the contract crap with periods of notice, do you have to redecorate, etc.

The above is the situation for unfurnished.

For furnished, one month's deposit is normal, agents take approx 15% for each month of the contract, charged at each renewall, up to a maximum of about 2 month rents per property. You do not have to redocorate furnished accommodtaion when you leave.

tim