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One-fifth of households pay domestic help under the table

Almost one-fifth of the 40 million German households has paid domestic help under the table at least once, according to a study published by opinion research centre TNS Emnid on Monday.

One-fifth of households pay domestic help under the table
Photo: DPA

Despite Germany’s reputation for orderly conduct, 18 percent of the 2,091 people surveyed admitted they had paid a babysitter or housekeeper off the books. Some 79 percent said they didn’t feel guilty about doing so.

Even though Schwarzarbeit, or illegal employment, is not a trivial offense, many people still seem to pay their housekeepers in cash to avoid tax issues.

Some 27 percent said they thought they could save money with unregistered household help, but according to Erik Thomsen, head of the job centre of the German pension insurance fund, registering household help for under €400 per month creates very few costs for taxpayers. Since 2009, almost 20 percent of such expenses can even be claimed in tax returns instead of the previous 10 percent, he said.

The bureaucratic hassle is actually quite minimal for registering household help too, he added, explaining that employees also stand to profit from the corresponding accident insurance, leave and sick pay.

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STARTUPS

What startups should know about Germany’s new ‘digital hub’ cities

A number of German cities have been rebranded as 'digital hubs' aimed at startups and business who specialise in everything from fintech to e-mobility. But where are the digital hubs - and what can they offer Germany's entrepreneurs?

What startups should know about Germany's new 'digital hub' cities

For decades now, one region has been synonymous with the world’s biggest and most innovative tech companies: Silicon Valley.

From major computing brands like Apple and Microsoft to digital giants like Netflix and eBay, this part of California has become the go-to region for tech entrepreneurs and talent, with tech coming to represent the region’s entire cultural identity.

Though it may seem far-fetched to imagine a German Silicon Valley, the government has been working on a similar concept spread out across the country.

Under the moniker of ‘digital hubs’, several cities are becoming bustling centres for start-ups and larger business all focused on an area of digitalisation, from smart infrastructure to cybersecurity.

What exactly is a ‘digital hub’?

According to the Economics Ministry (BMWK), the idea is to create networks of expertise where established businesses and larger corporations can pool their knowledge with startups and young entrepreneurs. 

Startup founders can seek out mentors, attend pitching events and connect with potential investors, post job offers and market their services on dedicated startup databases that are affiliated with the hubs.

READ ALSO: The legal steps for starting a business in Germany

There are also a range of programmes, from incubators to accelerators, offered at hubs throughout the country.

To ensure the hubs remain interconnected, a joint brand known as de:hub and a joint ‘hub agency’ run by creative agency RCKT have also been created.

“Although each city focuses on a particular industry, the idea is that clusters will emerge where other industries can bring in their expertise as well,” the BMWK explains.

Startups who are part of the initiative can also get hold of a Startup Card, which provides access to all of the co-working spaces across Germany’s digital hubs, as well as networking events and industry experts. 

For those who are not as far along in their business, the Grunderplattform – or Founder Platform – run by investment bank KFW can help entrepreneurs bring an idea to fruition, from writing a business plan to accessing free consultations. 

Former business senator Ramona Pop

Former Berlin business senator Ramona Pop (Greens) speaks at a press conference at The Factory Berlin following the founding of a new digital hub. Photo: picture alliance / Soeren Stache/dpa | Soeren Stache

Where are Germany’s digital hubs – and what do they do?

From the previous 12 hubs in major cities, the government has expanded its digital hub network to include 10 new locations – bringing the total up to 22. 

This latest step was taken at Germany’s Startup Summit in mid-September, where the government also secured €12 billion of investment for young businesses looking to grow.

Here’s an overview of the current hubs across the country and their respective industry expertise: 

Berlin: Fintech / Deeptech

Bremen: Smart manufacturing

Cologne: Insurtech

Darmstadt: Cybersecurity

Dortmund: Logistics

Dresden: Smart systems

Düsseldorf: GreenTech

Frankfurt (Main): Fintech

Halle (Saale): Life Science & BioEconomy 

Hamburg: Logistics 

Jena: Photonics and Digital Experience Platforms

Karlsruhe: Artificial Intelligence 

Leipzig: Smart Infrastructure

Lübeck: Renewable Energy

Mannheim / Ludwigshafen: Health & Chemistry

Munich: Insurtech / Mobility / Security & Defence 

Nuremberg / Erlangen: Health

Osnabrück / Hanover: Agrifood

Potsdam: Mediatech

Saarbrücken: Artificial Intelligence

Stuttgart: Future industries

Rostock: GreenTech

At the moment, only a handful of the hubs – Berlin, Dortmund, Frankfurt, Karlsruhe, Köln, Leipzig, Munich and Nuremberg – offer access to co-working spaces. However, de:hub says more will be added in the near future.

READ ALSO: Everything you need to know about becoming a freelancer in Germany

How can startups get involved in a hub?

According to BMWK, the best way to get started is to get in touch with one of the digital hubs through de:hub’s contact page. 

Startups have the choice of picking a hub based on its location or based on their particular industry expertise, and can either make contact with a specific hub or fill in the general contact form on the website.

Once a startup is matched with a digital hub, there are plenty of opportunities to get involved, from setting up meetings with mentors or other industry experts to joining network events, programmes and pitching nights.

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