I am currently living in the US, and planning on moving to Germany soon for personal reasons. I am currently happily working remotely as a contractor for an American company. What does this mean for me in terms of taxes health insurance and banking. I am currently being paid to an American bank which has partners in Germany, so I am unsure if I even need a German bank account. Since I am being paid hourly based on reported hours, and started recently I am unsure as to what I could expect my annual income to be.
If you are resident in Germany, then Germany expects you to pay tax on your entire worldwide income. It does not matter where the work was performed, or where you are paid to/from
You should not have to pay tax on this due to the double taxation agreement between Germany and the USA, but you will need to study this in detail to determine in detail how to file to ensure this. As a US citizen you will still need to a file a US tax return.
Normally you will also need to make social security contributions in Germany based on your income.
If you are however a freelancer then you may be exempt from these. But in Germany the rules for being a freelancer are strict and you must not earn more than 80% of your income from a single source (otherwise you will have to anyway pay the social security contributions).
You will also need to have health insurance, as this is mandatory for living in Germany. If you have lived in Germany before then you can get accepted back into your previous health insurance, otherwise you will need to find one, and this might be expensive.
Because of this, and the practicalities of living in Germany, you will need to have a German bank account. Otherwise you won't be able to pay any of your bills!