- Daiki Saito
When my company decided to send me to Essen, I took a quick look at the local community and said: Please do!
Employment in Augsburg
Local Economy
Augsburg’s local economy has traditionally been based on the industrial sector, and today the city is known for its role in manufacturing technological and highly specialized equipment such as industrial robots, printing systems, airplane engines, and personal electronic items. As a result, Augsburg is considered Germany’s second industrial center for technology, behind Munich, and is now home to the offices or headquarters of many technology companies, including Siemens, MAN, KUKA, and Fujitsu Technology Solutions.
This industrial base is supplemented by a growing technological service sector, primarily engaged in the development of software solutions, information technology, and communications. In addition, Amazon has a major operations center based in the city.
Expatriates working in Augsburg tend to be employed in senior or technical roles in the industrial sector, particularly for the global or multi-national corporations, such as Siemens, based in the city. Other expatriate jobs include English teaching, software development, and governmental or ambassadorial positions.
Work Permits for Augsburg
Germany is a member of the European Union, and as a result expatriates from EU/EEA countries and Switzerland do not require a permit to work in Augsburg, although they will need to register with their local authority if they wish to stay for more than three months. However, Germany has regulations in place that require citizens of some new EU member states and some Eastern European countries to obtain a work permit, as is the same for all non-EU/EEA and Swiss citizens.
In order to apply for a permit to work in Augsburg, you must first secure work in Augsburg, as your prospective employer will need to prove that no EU/EEA/Swiss or German citizen can fill your prospective role. You will also need to submit a number of official documents, which may need to be translated into German. These work permits are usually temporary, but can be renewed or re-applied for on expiry.
Income Taxation in Augsburg
Like German citizens, expatriates living and working in Augsburg will be required to pay income tax on their earnings. However, as an expatriate, the income on which you will pay income tax at German rates is dependent on your residency status for tax purposes. So, if you live and work in Augsburg for more than 183 days a year, you are classed as a so-called fiscal resident, and as a result will pay income tax at German rates on your worldwide income. If you live and work in Augsburg for less than 183 days a year, you will pay income tax at German rates on your German income only.
The income taxation rates for people working in Augsburg in 2015 are as follows:
- Up to 8,355 EUR — no income tax payable
- 8,355–52,881 EUR (or 16,709–105,762 EUR for jointly assessed married couples) — 14%
- 52,882–250,730 EUR (or 105,763–501,460 EUR for married couples) — 42%
- Above 250,731 EUR (or above 501,461 for married couples) — 45%
In addition to income tax payments, any person working in Augsburg that pays over 972 EUR a year in income tax will be required to pay a further 5.5% of their income tax as a solidarity charge.
For more information on the German tax system, as well as social security, please take a look at our dedicated guides on Social Security & Taxation in Germany.