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‘Nachzahlung’: What are the rules around additional housing costs in Germany?

In Germany, if a utility bill is delivered too late, tenants don’t have to pay it. The Local takes a look at ancillary costs and when ‘additional payments’ can be collected.

Toy house sits on a list of bills
If the utility bill is too late, landlords can no longer assert claims. Photo: picture alliance/dpa | Florian Schuh

The German word Nachzahlung means an additional payment or back-payment.

You may owe Nachzahlungen for certain utilities, or other maintenance fees, often called ancillary costs, in your apartment building. 

Since bills for energy or fuel use are calculated annually in Germany based on estimates of usage and market prices, back-payments are not uncommon, especially in times when prices are volatile – as they have been recently.

However, there is a limitation on the time in which these types of back-payments can be collected.

How late can back-payments for housing fees be collected?

Typically landlords have one year from the last day of a billing period to request a back payment from their tenants. So bills for additional costs accrued during 2023, for example, could be delivered up until December 2024.

If that time frame has passed, you can reject the claim in writing. You can find samples of similar letters for dispute resolution from the European Consumer Centre Germany (EVZ).

Also, if you have questions about the cost, the EVZ points out that you are entitled to a detailed breakdown of utility expenses: “This breakdown must be prepared at least once a year, in a way that is easy to understand for the tenant. It must contain a complete list of the costs, the calculation of the costs and the charges that have already been paid.”

READ ALSO: Six confusing things about renting a flat in Germany

What if the bills are incorrect?

Ancillary costs come on top of the basic rent of an apartment, and commonly include items like water, street cleaning or waste disposal bills. They may also include landscaping fees, or cleaning and maintenance fees for the interior of the building.

At least one ancillary cost – fees for cable TV – is set to be eliminated this year, as a regulation that allowed landlords to bundle these fees will no longer apply after July 1st, 2024.

READ ALSO: Why tenants in Germany could face higher costs for cable TV this year

The German Tenants Association found that tenants paid an average of €2.28 per month for additional costs per square metre in 2022. This amounts to an annual cost of nearly €3,000 for an 80 square metre apartment. 

But these costs also vary widely from region to region, and even between different apartment buildings on the same street.

According to reporting by Tagesschau, consumer advocates suggest that roughly half of utility bills are incorrect, mostly due to administrative errors or miscalculations.

To take action against an incorrect bill, you should launch the dispute within a year and should be able to back up any claims you make. For help with this, you may want to seek support from the Consumer Advice Center (Verbraucherzentrale) or the Tenant’s Association (Deutscher Meiterbund).

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GERMAN CITIZENSHIP

How much do you need to earn to qualify for citizenship in Germany?

Applicants for German citizenship need to be able to support themselves financially, but it's often unclear what that means in practice. Here's how to work out if your income is high enough for citizenship.

How much do you need to earn to qualify for citizenship in Germany?

Out of the requirements for qualifying for a German passport, supporting yourself financially is one of the most important – and one of the most confusing.

Many foreigners assume that the authorities have a magic number in mind and will often worry about whether their income is above or below this threshold.

In reality, though, the law is much more flexible. In section 10 of the nationality law, it states that applicants must show that they “can support themselves and their dependent family members without claiming benefits under the Second or Twelfth Book of the Social Code.”

In other words, that your income is healthy enough to not rely on the state for things like long-term unemployment benefits.

According to Fabian Graske, an immigration lawyer at Migrando, around €1,500 gross per month for a single person is usually considered enough to live on. 

That said, there isn’t really a one-size-fits-all approach to this quesiton. 

When it comes to working out if your income is high enough, you’ll need to take into account a number of factors that your case worker at the naturalisation office will also weigh up. 

That’s why it’s important to ask yourself a number of questions that go beyond just how much you earn: 

How high are your living costs? 

In Germany, there are huge regional differences in the cost of living, so what someone can afford to live on varies hugely from place to place.

For example, someone living in pricey Munich is likely to need much more money for rent or their mortgage than a resident of much more affordable places like Halle or Leipzig, so you should consider whether what you earn is enough to offer a basic standard of living in the city or town you live in. 

READ ALSO: Requirements, costs and permits – 6 essential articles for German citizenship

It is worth mentioning, though, that what you actually pay for rent and bills matters more than the averages. If you’re lucky enough to find an apartment with unusually low rent in Berlin, for instance, you can probably get away with earning less money as well. 

Are you single or do you have a family?

If you’re single and have no children, you’ll likely get a lot more lenience from the authorities when it comes to having a lower-than-average income.

A family sit at a lake.

A family sit at a lake in Bavaria. Image by Eva Mospanova from Pixabay

Of course, if you have dependents such as kids or a spouse who doesn’t work (or both), you’ll need to ensure not only that your own living costs are taken care of, but also that your family can survive on your income alone.

That naturally means you’ll be expected to earn a certain amount more for each dependent child or adult.

On the plus side, any income your spouse does earn will be counted alongside your own, so if you’re the one who is supported by their partner, the authorities will also take this into account. 

Is your job stable or unstable?

One key thing to think about when applying for citizenship is the security of your work contract. Someone who has a long-term contract with an employer and has passed their probationary period will be in a much better position than someone who is still on a three-month trial, for example.

This doesn’t mean you shouldn’t submit a citizenship application after just starting a new job, but be aware that the authorities may well wait to process your application until you’ve passed the initial probation and have been put onto a longer-term contract. 

A similar rule of thumb applies to people who are currently claiming Arbeitslosengeld I (ALG I), or unemployment insurance. Though this doesn’t disqualify you from citizenship, it may delay your application until you can find a stable job. 

READ ALSO: Can I still get German citizenship after claiming benefits?

Do you need to rely on welfare payments to get by?

A key aspect of German naturalisation law is working out whether you’re likely to be a financial burden on the state by relying too much on the welfare system.

The entrance to the Jobcenter in Düsseldorf,

The entrance to the Jobcenter in Düsseldorf, North Rhine-Westphalia. Photo: picture alliance/dpa | Oliver Berg

While everyone needs a helping hand from time to time, claiming benefits like long-term unemployment benefit (Bürgergeld) or housing benefit (Wohngeld) to top up your income sadly shuts you out of the naturalisation process and could also make it hard for you to qualify in the future. 

Luckily, this doesn’t apply to all types of state support – Kindergeld, ALG I and Bafög don’t count, for example – so seek advice from a lawyer or your local citizenship office if you’re unsure.

How old are you?

Though this is hard to fully quantify, age can sometimes play a role in assessments of your financial fitness in Germany.

A young person fresh out of university or vocational college may be seen as someone with high earning potential over the years, so in some cases the authorities may take a more relaxed approach to their current income.

In contrast, an older person coming to the end of their working life could be held to slightly stricter standards. 

This is also why it can be important to show that you have sufficient pension contributions or another form of security for the future, such as owning your own home or having lots of savings. 

READ ALSO: How can over 60s get German citizenship under the new nationality law?

What counts as ‘income’ under German law?

It’s important to note that income doesn’t just have to mean the salary you get at your job: income from rental properties, side hustles and freelance gigs can also be included, as well as things like alimony payments after divorce.

Once again, if you’re unsure, just ask. The citizenship offices are there to advise you and should give you clear instructions about what kind of documents count as proof of income in your application. 

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