I have heard that Germany is a very highly taxed country, is this true?

This is still true. With a top marginal individual tax rate of 48 per cent plus a surcharge of 5.5 per cent based on that tax - you might say Germany is still a highly taxed country.

People in employment additionally have to bear their 50 percent portion of the social security contributions.

Please note that bringing down the individual's income tax burden is one of the key characteristics of the current German tax reform.

What are the most important things to do about tax before coming to Germany?

You check whether you need a residence permit and a work permit and make sure that you have an employment agreement / assignment contract including all terms and conditions of your assignment.

If the company policy does not provide for tax equalisation you should negotiate a tax clause which will protect you from any potential disadvantages, if German tax rules result in a higher tax burden than you would have under your local tax regime in your home country.

If this is not possible, you should ask the assigning company for a detailed breakdown of the compensation package and the tax burden on the various elements in order to fully understand your gross-net position in Germany.

When I arrive, what must I do first?

You have to register with the local registration office ("Einwohnermeldeamt").

Upon registration as a member of specific churches you become subject of church tax of 9 percent of the income tax.

A further registration with the tax office is not required.

If, as a rule, German social security applies, the employer takes care of registrations.

The local office issues a wage tax card ("Lohnsteuerkarte") which you give to your employer's payroll department as a basis for the tax withholding.

If you are married and joined by your spouse in Germany make sure that you receive tax class 3 on the wage tax card.

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