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Ελληνικά📚 Glossary — 220 German official terms explained
220 German official terms — simply explained
51 terms found
Abgeltungsteuer (Capital gains tax)
Flat tax of 25% on capital income such as interest, dividends, and capital gains.
The bank automatically transfers the capital gains tax to the tax office.
Finance
Arbeitnehmersparzulage (employee savings allowance)
State subsidy for low-income employees who save through tax-advantaged investment plans.
With the Arbeitnehmersparzulage, I receive a 20% subsidy on my VL contributions.
Finance
Bausparvertrag (building savings contract)
Savings contract with a building and loan association — save first, then get favorable building loan for property purchase or renovation.
With a building and loan contract, you can secure low interest rates for a loan.
Finance
Brutto (Bruttolohn) (gross)
Total wage before deduction of taxes and social security contributions — stated in the employment contract.
My gross salary is €3,500, with approximately €2,300 remaining as net income.
Finance
ELSTER (ELSTER)
Electronic tax return — free online portal of the tax administration for filing tax returns.
You can conveniently file your tax return online via ELSTER.
Finance
Einkommensteuer (income tax)
Tax on all types of income (employment, rental, capital, business) — progressive tax rate of 14–45%.
The top tax rate on income tax is 42% on approximately €62,000 of annual income.
Finance
Einkommensteuererklärung (Income Tax Return)
Annual declaration of income to the tax office for the calculation of income tax.
The income tax return must be filed by July 31 of the following year.
Finance
Elterngeld (Parental Allowance)
State benefit for parents who care for their child after birth and work less — 65–67% of net income.
Parental allowance is paid for a maximum of 14 months if both parents take parental leave.
Finance
Erbschaftsteuer (inheritance tax)
Tax on inherited assets — tax-free allowances depending on degree of kinship (spouse €500,000, children €400,000).
I had to pay inheritance tax on the inherited house because the tax-free allowance was exceeded.
Finance
Erstattung (reimbursement)
Refund of overpaid amounts — e.g. tax refund, utility cost refund.
The tax refund this year was 1,200 €.
Finance
Erwerbsminderungsrente (Disability Pension)
Pension for insured persons who, for health reasons, can work less than 6 or 3 hours per day.
The disability pension was approved following the medical assessment.
Finance
Erziehungsgeld (parental benefit)
Former government benefit for parents — replaced by parental allowance (Elterngeld) since 2007.
Child-rearing benefit no longer exists; today it is called parental allowance.
Finance
Existenzgründung (business start-up)
Establishment of self-employment — startup grant, business registration and business plan are required.
The Chamber of Commerce offers free consultation on business startup.
Finance
Familienkasse (Family Fund Office)
Authority of the Federal Employment Agency that pays child allowance and child supplement.
The child allowance application is sent to the family fund.
Finance
Finanzamt (Tax Office)
Tax authority — responsible for income tax, wage tax, sales tax, and tax assessments.
The tax office sent me my tax assessment.
Finance
Freistellungsauftrag (exemption order)
Instruction to the bank to exempt capital income up to the saver's allowance (€1,000) from tax.
Without a tax exemption instruction, the bank automatically deducts capital gains tax on interest.
Finance
Gewerbe (Trade/Business)
Self-employed commercial activity that must be registered with the trade office.
Anyone operating an online shop must register a business.
Finance
Gewerbeanmeldung (Business registration)
Mandatory registration of a business with the competent trade office — prerequisite for any commercial activity.
Business registration costs between €15–60 depending on the city.
Finance
Girokonto (current account)
Bank account for daily transactions — salary, rent, transfers, direct debits.
Everyone in Germany has a right to a basic bank account (checking account).
Finance
Grunderwerbsteuer (real estate transfer tax)
One-time tax on the purchase of land or real estate — depending on the federal state, 3.5–6.5% of the purchase price.
In Hamburg, the property acquisition tax is 5.5% of the purchase price.
Finance
Grundsicherung (basic income support)
Social benefit for people who cannot afford their own living expenses — basic income support or old-age security.
Anyone who receives insufficient pension in old age can apply for basic income support.
Finance
Grundsteuer (Property tax)
Annual tax on real estate — paid by the owner but often passed on to the tenant through additional costs.
Property tax appears as a line item in my additional costs statement.
Finance
Kindergeld (Child benefit)
Monthly government child allowance — €250 since 2023, apply at the family fund office.
Child allowance is paid until age 18, or until age 25 if in training.
Finance
Kinderzuschlag (Child supplement)
Additional benefit for low-income families — up to €250 per child per month.
The child allowance supplement is paid together with child allowance by the family fund office.
Finance
Kirchensteuer (Church tax)
Tax for church members — 8 or 9% of income tax, withheld by employer.
If you leave the church, you no longer have to pay church tax.
Finance
Kontopfändung (account garnishment)
Enforcement on a bank account — creditors can access account balance with a garnishment order.
A P-account protects a basic exemption amount in case of account garnishment.
Finance
Lastschrift (direct debit)
Payment procedure where the payee withdraws the amount from the payer's account (SEPA direct debit).
Rent and insurance are deducted from the account by direct debit.
Finance
Lohnsteuer (wage tax)
Tax on income from employment — withheld by the employer monthly and submitted directly to the tax office.
Income tax is automatically deducted from gross salary.
Finance
Lohnsteuerjahresausgleich (annual wage tax adjustment)
Reconciliation of monthly income tax payments with actual annual tax liability — often results in a refund.
Through the annual income tax reconciliation, I received €800 back from the tax office.
Finance
Lohnsteuerkarte (wage tax card)
Formerly a physical card, now electronic (ELStAM) — contains tax class and tax-free allowances.
The electronic income tax card is now called ELStAM.
Finance
Netto (Nettolohn) (Net)
Das Gehalt nach Abzug aller Steuern und Sozialversicherungsbeiträge — der Betrag, der auf dem Konto ankommt.
Von 3.500 € brutto bleiben mir ca. 2.300 € netto übrig.
Finance
P-Konto (Pfändungsschutzkonto) (Protected account)
Current account with garnishment protection — secures a basic exemption amount of approximately €1,402 per month from account garnishment.
If garnishment is threatened, the account should be converted to a P-Konto immediately.
Finance
Pfändungsfreigrenze (Exemption threshold)
Einkommensbetrag, der nicht gepfändet werden darf — schützt das Existenzminimum (ca. 1.402 € netto für Alleinstehende).
Einkommen unter der Pfändungsfreigrenze darf nicht gepfändet werden.
Finance
Rentenversicherung (Pension insurance)
Statutory mandatory insurance for retirement — contribution: 18.6% of gross salary (employer and employee each 50%).
Contributions to pension insurance are deducted directly from salary.
Finance
Riester-Rente (Riester pension)
State-subsidized private pension savings — government grants and tax benefits, named after former labor minister Walter Riester.
Riester pension is particularly worthwhile for families with children due to child allowance benefits.
Finance
SCHUFA (SCHUFA)
Credit protection association — credit rating agency. SCHUFA score affects rental contract, loan, mobile phone contract.
Before viewing an apartment, one should obtain a SCHUFA report.
Finance
SCHUFA-Auskunft (SCHUFA report)
Written information on one's creditworthiness — free once per year (data copy according to Art. 15 GDPR).
The free SCHUFA report can be requested at meineschufa.de.
Finance
Solidaritätszuschlag (Solidarity surcharge)
Supplementary tax on income — since 2021 only for higher earners (from approx. €62,000 annual income).
The solidarity surcharge was abolished for 90% of taxpayers.
Finance
Sozialversicherung (Social insurance)
System comprising 5 mandatory insurances: health, long-term care, pension, unemployment, and accident insurance.
Social insurance contributions are deducted from gross salary.
Finance
Sozialversicherungsnummer (Social insurance number)
12-digit number of the pension insurance — assigned at first employment and valid for life.
The social insurance number is shown on the social insurance card.
Finance
Sparbrief (Savings bond)
Fixed-interest savings investment with a bank with a fixed term — secure but inflexible.
I invested €10,000 in a savings certificate with 3% interest for 2 years.
Finance
Sparerpauschbetrag (Savings allowance)
Annual exemption limit for investment income — €1,000 for individuals, €2,000 for married couples. No capital gains tax up to this amount.
One should set up a tax exemption order with the bank for the saver's allowance.
Finance
Steuer-ID (Tax ID)
Tax identification number — 11-digit, valid for life, automatically sent by mail after registration.
The tax ID is needed for tax returns and the employer.
Finance
Steuerberater (Tax advisor)
Licensed advisor who assists with tax returns and represents clients before the tax office.
A tax advisor is especially worthwhile for self-employed individuals with complex tax situations.
Finance
Steuerklasse (Tax class)
Classification into one of 6 income tax classes — determines the amount of monthly income tax withheld.
As an unmarried employee, I am classified in tax class I.
Finance
Steuernummer (Tax number)
Number assigned by the tax office for tax returns — not identical to the tax ID.
The tax number changes when moving to a different tax office district.
Finance
Umsatzsteuer (Mehrwertsteuer) (VAT)
Indirect tax on the sale of goods and services — 19% standard tax rate, 7% reduced rate.
Only 7% sales tax is charged on food items.
Finance
Unterhaltsvorschuss (maintenance advance)
State benefit for single parents when the other parent does not pay child support.
Child support advance is applied for at the youth welfare office.
Finance
Vermögenswirksame Leistungen (VL) (capital formation benefits)
Employer contribution (up to €40 per month) that flows into a savings contract — state subsidy possible.
My employer pays €26 in VL into my savings contract.
Finance
Verspätungszuschlag (late fee)
Penalty fee from the tax office for late submission of tax returns — minimum €25 per month.
Because I submitted my tax return 4 months late, I had to pay €100 as a late filing fee.
Finance
Zweitwohnungssteuer (second home tax)
Municipal tax on a second residence — amount varies by city (5–18% of annual net cold rent).
Students with a second residence in the university city often have to pay a second residence tax.
Finance