Ask HN: Should I move to Berlin?

57 points by narmak ↗ HN
I am a Pakistani, currently in Dubai working as an Engineering Lead and have been offered a job today from a company in Berlin for the position of Senior Software Engineer (PHP) and here is what they are offering me:

- 5000 Euros/month salary (I have been told that there is 38% tax, not sure if it is more)

- 24 holidays per year

- No ticket back home yearly

- 1500 euros for relocation

- 800 euros yearly educational budget

For my current position I am getting following

- Getting almost same salary (but it is tax free and I save around 4000 euros per month)

- 13 salaries in year

- 24 holidays

- Ticket back home yearly

Given that, I am happy at my current company. My only concern about Dubai is

- You can stay here in Dubai as long as you want but you will never get the permanent residency

- There are small number of good companies so I am not sure about the future here in Dubai if I ever have to leave my current company.

Having looked at the comparison above, if you weigh the pros and cons between Dubai and Berlin, would you recommend me to accept the offer? I don't know much about Berlin, could anyone please tell me how much could I save with 5000 Euros a month of salary

I am really confused and would love to know what would you recommend given your experience in Berlin Germany?

PS. I am a single person, a typical guy, no girlfriend, no night life, spend most of my time on my laptop hacking around. And most of the time, all I need is food and bed. Considering all of that, in a salary of 5000 Euros per month, how much could I save per month after my food and rent expenditures?

79 comments

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I'd say go to Berlin. There is a security for you and yours in a country like Germany that no amount of money can buy in a place like Dubai.

I wish I could explain it better, but my family is a migrant family from the Caribbean to the USA and their move involved costs/benefits similar to yours, and that's my overall impression.

Your net salary would be about 2900 euro monthly. Then you'd need to pay for an appartment, it would be at least 400-500 euro. Then you have to eat and sometimes buy new clothes since it's a cold country :) This would cost you maybe another 500 euro. So you could save about 2000 euro each month.
€500 for an apartment in Berlin? Are they really that cheap?
No, that time is over, except maybe in the outside districts. Lots of rooms in the central areas are more expensive than that.
I am living in Berlin. I would say with 5000 gross income you should be able to save ~1000-1500 Euro in a month. According to http://www.brutto-netto-rechner.info/ you should get ~2917.05 Euro net.

I think with 60k income the taxes are 28%, but there's health insurance and social security insurance, too.

I heard that finding a flat is currently not easy in Berlin. Bergmannstrasse is a lovely "Kiez" (neighborhood).

The scene in Berlin for programmers is nice, lots of meetups (if you are interested in that).

>in a salary of 5000 Euros per month, how much could I save per month after my food and rent expenditures?

You'll have around 2900 after taxes, and you'll probably spend around 1500 for the normal cost of living (apartment, food, etc). However this varies a lot from person to person, for example sharing an apartment is way cheaper. Rent prices vary by location, and so on.

I'd suggest visiting Germany and seeing if it's something you'll like, the culture, the language, and so on.

German here, living abroad.

- 5k/month -> 60k/year sounds reasonable in general. You might be able to get more, but honestly I don't think that's a bad salary for programming position. Tax sounds about right.

- 24 days of leave seems on the low side of things. I'd expect 28-30 OR more pay. I had 30 in Germany.

- 1500 for the relocation seems low as well. What are you supposed to pay for with that? Flight is covered by the company? What about housing (usually you have 1-2 month of rent to deposit, that might eat a large chunk of this amount already)?

Can't comment on the neighborhood or the current cost of living situation in Berlin, but I feel that I'd stay in Dubai if I were in your shoes. You earn quite a lot of money for later - 12*4k + 5k means that you basically nearly save all the money Germany offers before taxes. You are happy at your company. You fly home for free - no idea how expensive flights between Dubai and Pakistan are, for me this is quite expensive (Singapore -> Germany).

Let me turn this question around: What is it that you _like_ about the offer? Just getting out of "Can never stay forever" Dubai/a different tech zone alone or is the job/location itself interesting?

- Permanent residency in Germany after 3 years (what I have heard, if I learn German or 5 if not)

- The tech scene, lots of meetups and exposure

- Lots of big companies and startups

to name a few.

Have you actually been to Berlin or Germany in general before? Do you like it? Or is it because Merkel welcomes every foreigner currently... There are other cities in Europe that have a better tech scene compared to Berlin.
it is know as blue card(Skilled Worker).

21 months + good german -> PR

33 months + a bit of german -> PR

As far as vacation, it sounds normal (maybe a little low) for Berlin. Berlin has just 20 days by law. 25-27 is normal, I’d say. I’ve also never heard of getting a flight home every year in Germany, but it may be more prevalent in Dubai because there are so many foreign workers.
I’ve lived in Dubai for a year as a white person. I hated it, people are very pretentious and pretty much only care about money, I guess that can be expected as that as mostly the reason people go there.. One thing I noticed a lot is the insane work hours Indians go through there, and down right racism, I know that the germans work hard too but quality of life has to be better in Germany.

Even considering all of this you are losing out on a lot of money moving to Berlin. I left Dubai to work remotely in CPH and love it so far

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Berlin is way better than Dubai. Berlin has more atmosphere and is not that "american" like Dubai. Berlin has a big developer scene and millions of startups and meetups. But remember, weather is not that nice in Germany :D
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Does Berlin give you permanent residency ?
As a well earning IT professional you should be able to apply for the so called blue card. http://www.bluecard-eu.de/
bluecard is a very easy way to permanent residency in 1-2 years, but only if you studied in Germany or Europe.
The Blue Card allows you got get permanent residency in 21 months if you speak basic German (B1) regardless of where you studied. And in any case you'll still get permanent residency after 33 months with A1 German
Berlin doesn't give permanent residency per se but Germany does. You can apply for permanent residency with Berlin as your home but it'd be valid around all of Germany.
The total tax burden for well-earned singles is rather roughly. 50%. After you can deduct some lump sums from your tax, we expect 40% for the tax. However, since you also have an employee's share of the health insurance, you should stay at 50% for the time being.

A small apartment, or a room is around 400 EUR warm if you have little claim to location and equipment. Find out more at immonet. de. The user interface is simple and even if you don't know German, you should be able to use it.

The cost of living for a geek who lives sparingly would be 400 EUR per month. Insurance and miscellaneous costs 150 EUR.

Leaves you with 5000 * 0,5 - 400 - 400 - 400 - 150 = 1550 EUR should be doable as a monthly saving. With a buffer, a monthly saving of 1400 EUR should be possible.

60000 EUR annual salary is ok for the beginning. If you perform well, you should earn a six-digit salary as a Senior Software Engineer, especially in Hamburg, Munich and Düsseldorf. To do this, however, you would have to set the right course at your first job in Germany and not start with less than 75,000.

Is a six-digit salary for a senior software engineer a realistic expectation? I thought that was only common in SV and NY.
I don’t know a single non team lead SWE in Germany earning six digits. And most find it quite difficult to go higher 60k
You will have to pay up to 42% in taxes and security expenditures. You will not be able to save much in Germany as the state takes most of your money. Berlin is not as expensive as Paris or London but the rent costs went up in the past 7 years. The weather is also very shitty.

You will have to wait / work at least 7 years to get German citizenship.

I would aim to get into Switzerland with your skills / knowledge.

I live in Berlin. I would say, money is not why you would want to move to Germany. It's social & medical insurance/stability/security.

I've been to Dubai for vacation, and I found it pretty boring TBH. In Europe you'll have more opportunities to find something interesting, even if now you're a type of guy who would spend much of his time in front of the laptop. Maybe that's because there is just boring in Dubai?

I would say, money is not why you would want to move to Germany. It's social & medical insurance/stability/security.

Comparing salary plus benefits is really hard. OP should try to put a number on the value of health insurance etc in Germany.

Can second that part about stability/security. Especially if you plan long-term (i.e. don't intend to stay single forever). You get (mostly) free health-care, child-care, education for your children, including studying almost for free at universities. State pays compensation for young parents that take off from work for up to 1 year etc.

So there usually is no need at all to save a lot of money just in case, which makes the high tax rate pretty bearable.

tl;dr yes you absolutely should

Yes you should move to Berlin if you have the chance to get permanent residency or even the citizenship. If you live in Germany, you live in Europe and can relocate to another country within the EU easily. The German citizenship is THE most valuable in the world ( http://www.telegraph.co.uk/travel/lists/most-powerful-passpo... ). The German economy is one of the strongest in the world. You'll live in a free, welcoming and open democracy. I wouldn't care so much about the perks, but about the fact that you're in the EU, and specifically in Germany.

ps: If you got so far to get a job offer with relocation in Germany, you'll also easily find another job here. Maybe not in Berlin, but Munich for example has all the big names: Google, Microsoft, IBM, Autodesk, Salesforce, (the list goes on and is really long).

A passport that lets you visit the most countries != the most valuable citizenship. Might be wrong, but doubt many would pick a German citizenship over an American.
5000 € "brutto" per month is a good salary in eastern Germany. You will receive around 3300 € per month "netto". The difference pays for taxes, pension insurance, health care, unemployment insurance and nursing care insurance.

Rent is quite high at the moment in Berlin as well as in almost any larger city in Europe. It's unlikely that you will be able to find a flat for less than 500 € per month. Depending on your habits, you can get by comfortably with 500 € for food and beverages monthly. This will leave you with at least 2000 € per month for savings.

A 13th salary and 30 days of holidays are quite common in Germany, the latter being a requirement for me personally. Companys that only give you 24 days/year make a cheap impression on me - this is the bare minimum that is required by law but it is uncommon for larger companys.

Also note that you'll only be allowed to apply for permanent residency after 5 years of work.

My advice would be to keep looking. Not because the money isn't good enough, but because the company makes the impression of being cheap to its employees.

It's very hard to see a reason for you to move to Berlin. You will gain a net ("in hand") salary much lower than your actual salary because in Europe there's not only the taxes that are deducted from your salary, but also contributions for health assurance, for retirement and for social security (and sometimes many other "small" things). All these things can add up to ~50% of your salary. And see this: " People earning more than EUR 52,882 per year are subject to a tax rate of 42%." and "In addition to Lohnsteuer, you have to pay the so-called solidarity surcharge (5.5% of your income tax)".

from here: https://www.internations.org/germany-expats/guide/15984-soci...

If I were you, I wouldn't move.

Well money isn’t everything. If I were to move to another country/city, I‘d choose Berlin. To me, it’s magic. I just love how at some places trees grow over old buildings, people are very liberal with graffiti (even on purpose), the great bars and places-to-be, open minded people...
I think you didn't read carefully the question.
No, I think the 42% tax-rate is kind of a differential: i.e. any additional EUR you get is taxed by 42%, but the euros below 52,882 € are taxed by less.

Running the tax calculator here:

http://www.brutto-netto-rechner.info/

it says you get 3.275,61 € after tax for 5000 € / month.

However, that already covers all the insurance costs, health insurance, insurance against loss of employment and pension insurance.

And health insurance in germany is a "real" insurance that won't try to get rid of you in case you get severely ill (cancer etc.). Even includes compensatory payments in case you're unfit for work (although your employer may have the right to terminate you if there is no chance of you recovering)

Still.. going from 4000 to 1500 is hard to justify. Personally I think he will be very disappointed (not only for financial reasons).
I lived in Berlin for 9 months and it was an awesome place to be. I quite enjoyed the nightlife there too :)

For apartment, prepare to spend around €800 peek around here:

http://www.wg-gesucht.de/wg-zimmer-in-Berlin.8.0.1.0.html

Monthly expenses for food, drinks, socializing would be anywhere between €300 - €600

Try to calculate your net salary:

http://www.parmentier.de/steuer/steuer.htm?wagetax.htmt

On 2900 net, I'm not sure if I moved there although I lived on significantly less money :)

For curiosity, I just run a Dubai vs Berlin cost-of-living comparison in Numbeo and I think housing is the factor that makes Berlin cheaper than Dubai (about 50% less).

In my opinion, Berlin is a much better place (even with that weather) than Dubai except if you are Java engineer with interest in banking apps like Murex/Calypso/etc. If that's your case, stay in Dubai or switch to Singapore in the next 2-4 years. After that period, you can fly to whenever you like in Europe working in the bank and place you want.

Numbeo is an important site to keep in mind. It really makes a difference in decision making what the goals are :) Berlin is an interesting, exciting city with lots of potential. I have a friend who lived in Dubai for 10 years and he now moves back to Hungary. Another friend left Dubai after a few months, he said that place is nuts.
If they pay 5000€ (brutto), you will likely have ~3.200€ (netto) left after tax and social security, retirement payments, and health insurance. Feel free to play around with http://www.brutto-netto-rechner.info which is of course not 100% accurate but pretty good for estimation.

That being said, 3.2k is a good salary in Germany, and housing in Berlin is not as expensive as in Hamburg or Munich, 1000€ will get you a spacious flat for 1 person, utilities included. Food is cheap in Germany, if you can cook a few hounded € per month are enough.

My guess would be that if you have a decent lifestyle, find a not too pricey flat, you can save between around 1000€ per month.

- after tax, social security and mandatory health insurance, you will keep around 50% of your gross income

- apartment will be around € 600-700 now (1-2 rooms in a "hip", central location like Kreuzberg, Friedrichshain, Neukölln)

- it's a quite multicultural city, with lot's interesting live styles and culture

- it's a democratic, stable country with a generally functioning law and state

- the weather is cold and rainy especially from November to May

- it's way up north, so less light in winter, more in summer

I would prefer Berlin to Dubai, but I am a Berliner, so ...

Two things to consider is that: if you're planning to move for to Germany long-term, you could aim for citizenship in a few years giving you easy EU access (+ many other countries). On the other hand, Germany is one of the annoying countries which don't do dual citizenships - you could be forced to drop the Pakistani one. (not the case for the UK, for example)

> - 24 holidays per year

This is the minimum you have to get for full-time employment in Germany. In many companies you can negotiate more. (worth noting for the future)

I don't know much about Dubai, but from what I understand you'd also have much more to do in Germany. Easier travel to interesting places as well, since you can't throw a rock around there without hitting something historic.

20 days are minimum. 24 only applies when you're working 6 days/week.

Generally, I'd expect 30 days. That's still the norm.

24 screams "startup" or "we struggled to offer that salary, so we're compensating with less holiday".

You might wanna remove the specific office address and just describe the area, to keep the offer private :)
I was exactly in the same situation 2 years back and instead of Dubai I was in Lahore, Pakistan. I got offer from Berlin and I was offered I believe 4500 Euros/month and I posted on Hacker News too look at that thread https://news.ycombinator.com/item?id=10602867 ( Ask HN: Full Stack developer offer from Berlin )

I didn't move to Berlin and my reasons were little different. If I were to suggest you I would say move to Berlin and the strongest point is you can get National there with in 3 to 4 years. second strong point is Berlin is turning into European Tech Hub exposure you can get while living Berlin you can't get in Dubai.

Go to Berlin ;)

As an American who moved to Prague, I'd say that those taxes pay for themselves in terms of quality of life and social insurance. Having so many beautiful parks and so much culture right in the city so few minutes away by tram is worth way more than owning a big house. I think of it like this: I can either live in America and have a big living room, or I can live in Europe and have an entire city as my living room.

You'd have to go to Berlin to see what I mean.

You also need to save "less" (compared to the US) because certain services are covered through tax.
If you are not interested in drinking then opportunities for socializing in Berlin may be a bit limited. They are also very big on pork and ham. Germany is a very stable but also a very conservative country. While Berlin is the least conservative part, you will find that the upper echelons of society in terms of net worth tend to be exceptionally conservative. If you do not learn German, opportunities for economic and social advancement may be limited. If you like sun, you will find Germany depressing. In short, it will be hard to move there. If you want stability it is a good option, and besides Europe is simply beautiful. However, it will be hard work and a long term commitment. In your position, I would trade income for residency, stability and access to Europe. You can always move again after your goals are achieved.
Never been to Dubaï but I have visited Berlin many times. Didn't like it much. The weather is horrible 9 months of the year. People are mostly very nice, but many don't speak English, so learning German would be a necessity in order to fit in -- even for grocery shopping.

That said, it's a gateway to Europe; if you can somehow get a working permit valid in all of Europe, or a path to citizenship, that would be a fantastic opportunity.

Go to germany. Being able to get permanent residency and maybe even becoming a citizen at some point is worth it. You'd become a European on paper, which makes life much easier for you. Do note that you'll have to sit it out for a couple of years before it starts paying off.

As others have mentioned, you'll pay more taxes and you'll be left with less net income, but the amount of social security you get in return is totally worth it. Plus, there's more than enough tech companies in Berlin, so I am sure you can increase your salary over time.