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Born in St. Pauli, Hamburg's most famous yet poorest district, Schünzel was the son of a German father and a Jewish mother. His father began as an actor but economic hardship led him to pursue a career in commerce. For a time, Schünzel followed a similar path, studying business and starting his career in publishing. After making his stage debut in 1912, he developed a passion for acting, refining his craft with theater companies in Switzerland and Berlin over the next three years. In 1916, Schünzel made his first film appearance and soon expanded into directing.
Balancing roles in front of and behind the camera, Schünzel demonstrated versatility, excelling in light comedies as well as dramatic parts, often portraying irredeemable villains or charming yet morally ambiguous men. As a director, he gained recognition with grand historical dramas like Katharina die Große (1920), which were successful enough to enable him to establish his own production company. Influenced by filmmakers Richard Oswald, his mentor and frequent collaborator since 1916, and Ernst Lubitsch, for whom he acted in Passion (1919), Schünzel’s 1935 satirical, mythological musical farce Amphitryon displayed the hallmark irony, lightness, and subtle risqué humor known as the 'Lubitsch touch,' along with high production values. Amphitryon became Ufa's top box office hit of the year.
Among Schünzel’s notable directorial works were the original drag comedy Victor and Victoria (1933), a parody of British music hall impersonators, and the social satire Die englische Heirat (1934). His popularity in Germany earned him the Nazi title of 'Ehrenarier' (honorary Aryan), allowing him to continue working despite his Jewish heritage. However, this status eventually harmed his career. Frustrated by increasing government interference, he left Germany in 1937 and, like many exiles, moved to Hollywood. Signed by MGM, he directed three films, notably the lavish operetta Balalaika (1939), a showcase for Nelson Eddy without Jeanette MacDonald. His other films, including The Ice Follies of 1939 (1939) and the romanticized, historically inaccurate Franz Schubert biopic New Wine (1941)—an independent film distributed by United Artists—were marred by poor casting. The Ice Follies became one of Joan Crawford's biggest career flops.
Following these disappointments, Schünzel returned to acting, often cast as academics or Nazis. His most memorable role was the sinister scientist Dr. Anderson in Alfred Hitchcock’s acclaimed thriller Notorious (1946). After 1949, he returned to Germany but found few job opportunities. Schünzel died in November 1954 from a heart condition after attending a cinema screening.
