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overview Munich, Germany

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Local Ecosystem[Facts & Figures]

[Notable Startups:]

- Munich has over 95,000 startups and SMEs employing nearly 369,000

people. Since 2005, the city’s startups have received nearly €63 million in funding.

- High concentration of seed and venture capitalists such as Wellington

Partners Venture Capital and Munich Venture Partners.

- Home to important universities such as Ludwig-Maximilians-Universität München

and Technische Universität München, which create knowledge spillovers.

- Efficient local and international transportation links, with good motorways,

railways and an expanding international airport.

- The high demand for technical jobs (especially in automotive, software, medical

engineering, environmental technology and aerospace sectors) raises the cost

of hiring high-skilled talent.

- The high-tech industry voted Munich as the fifth best European city to start up in.

Exits:

- Payment solution platform PAYMILL acquired by Klik & Pay in July 2016.

- Online shopping site windeln.de, specializing in baby products, went public in 2015.

- Ride-sharing network carpooling.com was acquired by BlaBlaCar in 2015.

- Boku was acquired by DaoPay GmbH in 2015.

Scaleups:

- Online platform for interior design products WestWing raised €221.5 million.

- Professional smart glove for production and logistics manufacturer ProGlove raised €2 million.

Sources: European Digital Index 2016, Startup Heatmap Europe 2016, startuphubs.eu Source: Bayerisches Landesamt für Statistik

und Datenverarbeitung June 2016.

Munich, Germany[City:]

[Statistics:] Urban Munich population: 2,606,021

Surface area: 310.43 km2

Professional theaters: 265

Museums: 45

Parks: 53

Major opera houses: 4

[City Ranking] [Stats]European founders had up to five votes from a list of thirty cities:

Founders would endorse Munichfor the following reasons:

1. Berlin2. London 3. Amsterdam4. Barcelona5. Lisbon

6. Dublin7. Stockholm8. Munich9. Copenhagen 10. Vienna

Access to talent - 48 percent

Access to capital - 50 percent

Munich may be Germany’s third largest city, but it possesses the charm and ambiance of a postcard village. It’s a city that cherishes its traditions while keeping an eye on the future in a constant game of tug-of-war between local identity and global connection. Somehow Munich has figured out how to thrive at both: from organizing the world’s most famous

beer fest to building a city-wide startup ecosystem, Munich does nothing half-heartedly. Munich’s

abundant green space is an example of its outlook: the Englischer Garten is one of the world’s

largest public parks; world-renowned museums, such as the Deutsches Museum, call the Bavarian

capital home; and blue-chip companies like General Electric, Microsoft and IBM add a heavy dose

of international flavor. And Oktoberfest represents the city’s personality – even with its distinct

scope and size (the festival hosts an average of six million visitors per year), it aims to create an

atmosphere of conviviality and community. It’s a cosmopolitan city with a heart.

Munich Essentials

Before You Come 20

Cost of Living 20

Cultural Differences 20

Getting Around 20

Renting an Apartment 23

Finding a Coworking Space 23

Insurance 25

Visas and Work Permits 25

Taxes 25

Starting a Company 27

Opening a Bank Account 27

Telephone Contracts 29

Learning the Language 29

Meeting People 29

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Before You Come

Becoming familiar with online rental platforms will be a huge help in your search. If you’re

heading to the Bavarian capital without a job contract, be sure to have sufficient funds in

your bank account to apply for the proper visas; a minimum of ten thousand euros per person

is sufficient for the immigration office. Newcomers to any German city must register with

their local residence registration office. If you’re just passing through and checking out the

city, a tourist visa will suffice. Those coming from the EU and EEA do not have to wade

through the immigration process.

Cost of Living

Calling Munich home can be a costly endeavor (it’s one of Germany’s most expensive cities to

live in), but tax dollars work to ensure the city remains sicher, sauber und schön (safe, clean

and beautiful). Housing may be the highest expense, but fundamentals like groceries remain

competitive. And beer is cheaper than water in Bavaria – which is perfect for those who enjoy

heading to a beer garden or sitting alongside the Isar River with a picnic and drinks. Whether

it’s relaxing in the Englischer Garten or heading to one of a variety of museums, including the

famous Deutsches Museum, Munich may be expensive to live in, but the city has a lot to offer

for its high costs.

Cultural Differences

Munich is often called a conservative city, and it’s true that it’s a city that values tradition and

remains incredibly proud of its Bavarian history. Locals value courtesy, demureness and doing

the right thing. When the pedestrian traffic light is red, a person should wait until it’s green to

cross – especially when there are children around. Being mindful of your interactions and how

they affect those around you is a city trait. Keeping your apartment quiet after 10 PM will be

appreciated. When riding the subway, be sure to keep your bag on your lap to allow someone

else to have a seat. All in all, it’s a city that loves to enjoy itself, but that enjoyment begins and

ends with treating people with quiet, old-fashioned respect.

Getting AroundMunich may have a big reputation, but it is, in fact, a small city. Some even joke that Munich

is a village. Therefore getting from point A to B should not be a hassle. Munich is not only a

quaint, beautiful city, it also has one of the most efficient and easy-to-use public transportation

systems. There are four main means of public transport: the bus, the U-Bahn (subway),

the S-Bahn (urban train) and the Strassenbahn (tram). With these, you can get around

most of the city (and out of it) quite easily. Signs are color-coordinated to make navigation

easier. Expect well-kept areas and quiet trips (unless it’s the Oktoberfest!) on the public

transportation system. Taxis are also available, and come in handy when the U-Bahn shuts

down at 1 or 2 AM.

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Renting an Apartment

Renting a room or an apartment in Munich is a tough undertaking. Time varies for finding a

place, but it could take four to six months. Usually, the Kaution, or deposit, is two months’

rent. Landlords may also ask for a positive SCHUFA (paperwork that shows you have a good

credit rating – available online at meineshufa.de), payslips or bank statements from the past

three months to prove you have sufficient income, a Mietschuldenfreiheit (a document from

your previous landlord showing that you don’t owe any money), and your Anmeldungsbestäti-

gung (registration). A well-known rental platform is immobilienscout24.de, which is useful for

those looking for an apartment or room. For those seeking a furnished apartment, check out

mrlodge.com. Of course, it’s always a great idea to bring along a German speaker when signing

papers. Be sure to have all papers and documents prepared – in fact, being prepared is the

golden rule in Munich. The most lively neighborhoods are centrally located Schwabing and

Maxvorstadt, which are abundant in restaurants, bars and shops. Check out neighboring Lehel

if you’re looking for a more quiet, upscale space. And if you’re on a budget, Laim or Sendling are

great places to start. Living just outside the city is no problem, as public transportation makes

it easy get to the city center.

Finding a Coworking Space

Like many European cities, Munich has recently seen a surge in coworking spaces to cater to

the growing startup scene. Depending on the space, different types of memberships are

available, and some coworking spaces may not even require a formal contract. Memberships

are usually on a monthly basis, though there are those that require a minimum time commit-

ment. Members often have access to office facilities, including conference rooms, lounges,

kitchens and even game rooms. Fortunately, the range of coworking spaces caters to every

budget. If you only need to cram in half a day’s work, Idea Kitchen may be the best bet. If you

have a large team and need serious square footage, check out Design Offices. A few coworking

spaces that are easily accessible from Munich’s city center include SF17 and Nutrion. There are

also coworking spaces that offer incubation-like services for startups, like Impact Hub.

See Flats and Rentals page 196

See Spaces page 72

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Insurance

Healthcare is mandatory if you live in Germany, and you have a choice between public and

private coverage. Costs depend on age, income and the level of coverage required. Public

insurance is more affordable but is usually only available if you have an employee contract or

you are a student. For freelancers, private insurance is often the only option. Once you have

proof of insurance, you will be able to see nearly any doctor, but check which types of health

insurance they accept. Medication is usually subsidized. Legal protection insurance is not

compulsory, nor are building and property insurance, but they’re certainly worth considering.

When taking out insurance, be sure to pay for Haftpflichtversicherung. It’s essentially a

third-party liability insurance that covers a multitude of different unexpected incidents, from

a roommate’s dog chewing up a pair of shoes to you accidentally scratching someone’s car.

Visas and Work Permits

To live and work in Munich, one must have a visa. Germany is part of the Schengen

Agreement, so if you’re an EU citizen, that could be as simple as registering your residence.

To get a visa if you’re not an EU citizen, you must show authorities you’re financially self-

sufficient, are employed by a company or are the spouse of an EU citizen. Applications can be

made at Munich’s Ausländerbehörde (foreigners’ office). Be prepared with your passport,

passport photos, bank account statements, employment contracts and any other documents

they request. Citizens from most other countries can enter Germany for ninety days on a tourist

visa, depending on your country’s regulations.

Taxes To pay for its excellent public transportation system and clean spaces, Munich levies high

taxes. The tax system is similar to other systems in the Western world. The taxes you pay are

a percentage of your income plus municipal tax, health contributions and church taxes. You

may opt out of the church taxes if you wish. Just to be sure, speak to your human resources

department or call the Finanzamt (tax office). If you’re a resident, you will be liable to pay taxes

on worldwide income; for non-residents, you will be liable to pay taxes on income sourced from

Germany. If you are required to pay taxes, then file an income tax return at the Munich tax office.

According to howtogermany.com, the tax rate of a single person making up to 53,665 euros

can range from 14 to 42 percent. Check out easyexpat.com for more in-depth information about

where taxes will be allocated. Germany’s tax system is rather complicated (and they know it!), so

consider hiring a tax consultant to do your taxes.

See Important Government Offices page 196

See Insurance Companies page 197

See Accountants page 195

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Starting a Company

Founding a company in Germany is not for the faint of heart. It involves plenty of

paperwork and a high tax rate. However, when a company is created in Germany,

it signals to potential investors and business partners that the company is serious.

When getting started, it’s recommended to hire a Steuerberater (tax consultant).

This person can advise on what kind of company to incorporate. Alternatively, find a

German-speaking friend to help you navigate the paperwork necessary to take to the

notary to get started. Depending on what kind of company you wish to incorporate,

you could pay 200 euros to found a UG (Unternehmergesellschaft) or twenty-five

thousand euros for a GmbH (Gesellschaft mit beschränkter Haftung). The difference

between the companies is mainly the amount of liability and investment it can take on.

In Munich, there are several resources to help you build a network. Munich Startup,

created by the city of Munich and Chamber of Commerce in collaboration with local

universities, is a great focal point to get started. The portal aims to guide founders

by helping them with permit and application paperwork and with building a network

of potential partners. In Munich, there are both public and private funding avenues

available. Bayern Kapital, for example, is a public Bavarian venture capital provider that

invests along with private investors. BVK, or the German Private Equity and Business

Capital Association, works to promote collaboration within the startup ecosystem.

Opening a Bank Account

Once you have proof of residence, you can open a bank account in Germany. It’s a requirement

for doing most things, like renting an apartment, obtaining a phone or internet contract, or

receiving your monthly salary. Most banks offer online banking; a few banks are purely online,

like N26. If you don’t speak German, request an English-speaking bank consultant. To open

an account, you will need your passport, proof of residence and, if you have it, an employment

contract.

Though much of the world works with card, Munich is still very much a cash-only city.

Supermarkets and clothing chains often accept card, but many local restaurants do not.

Be sure to bring cash with you everywhere just in case. There are ATMs around the city,

particularly around the center. In many neighborhoods, though, one may have to walk a few

blocks to withdraw cash. A few common banks to use in Munich are Deutsche Bank,

HypoVereinsbank and Commerzbank. PostBank is an option for those who don’t want to pay

withdrawal fees when using different banks’ ATMs.

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See Banks page 195

See Programs page 54

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Telephone ContractsThere is a wide selection of telephone, internet and mobile providers to choose from that

provide excellent service and reasonable rates. Most phone plans are similar to those in other

countries. The question you should ask yourself is how much data you really need each month.

The cheaper and more flexible option would be to buy a prepaid SIM card. If you decide to go

with a plan, be sure to check whether there is a two-year minimum on your contract; some

German phone plans require that. Most of the phone companies also offer home internet

services. Try Vodafone, Deutsche Telekom or Telefonica. It’s also worth noting that German

telephone contracts automatically renew. If you plan on changing providers, be sure to check

your current contract and cancel within the specified timeframe. If not, the company will once

again register you for the following year.

Learning the LanguageMark Twain famously called it the “Awful German Language.” Munich boasts plenty of

resources for you to discover how you feel about it. There are several language schools that

offer varying levels of intensive learning: InLingue, TANDEM and, of course, the renowned

Goethe Institute are just a few. Prices can range from 200–1,200 euros, depending on how

many hours you take. Classes can be taken for several hours a day or just one hour biweekly.

For those on a budget or with less time on their hands, there is the Volkshochschule.

It’s essentially a community college that offers classes on a variety of subjects, from guitar

playing to Persian cooking. Depending on the class, the cost of an entire German course

could be between 150 and 350 euros. When enrolling in any language program, expect to take

a placement test. If online courses are more your speed, then check out deutscheakademie.de.

They provide online classes to kickstart your learning. In any case, the locals will appreciate you

trying to learn their native tongue.

Meeting PeopleMunich still has that small community charm, which makes it a bit easier when navigating

the friend-making process. Also, since quite a few people speak English, language is not a

barrier to meeting different folk. Head to Schwabing or Maxvorstadt, full of well-attended

bars and restaurants. There, small art shows host openings, and organizations often have

small events. In Munich, meeting people is a bit more formal. It’s not common to randomly

strike up a conversation at the grocery store or begin talking with someone seated next to

you at a restaurant. In general, friendships take time, as Germans are private people and make

distinct boundaries. Even if you get along with a colleague at work, there still may be a line

between the personal and professional. Check out events catering to your interests, such

as hiking or technology – meetup.com is a useful way to begin. There are also city-wide events,

like food truck festivals and outdoor opera concerts. These are great events for those wanting

to hang out and potentially meet new people. InterNations is also a popular avenue for those

new to the Bavarian capital; it hosts private parties at clubs and its members host outdoor

excursions, workshops and nights out.

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See Startup Events page 199

See Language Schools page 199

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