Contracting in Germany through a UK agency - Confused!

[JustMe]

danbro

Hi, I'd really appreciate some good advice here as have been struggling to find anything conclusive over the last few weeks.

I've just been offered a 9 month contract, as an Engineer (though it could be shorter / longer term) with an American company who are providing a technical service to a German based company. My contract would be through a UK based agency, and they'd have another contract with the American company. The Agency are either wanting to pay me through an umbrella or my own limited company. The umbellas I've spoken too are all quoting a 5% fee which seems excessive! From what I gather these umbrellas are really a glorified admin service!

I really want to try and sort things out myself and perhaps have a local German specialist deal with the tax side. I am aware I'd have to register at the local tax office in Germany as a first step but as to what I do then I don't know. I have the following questions:

1. Would I be better to be paid through my UK ltd for the first 180 days, and therefore not be subject to German tax during this period? Following which I pay tax through Germany and not UK. But could there be a danger of double tax??
2. Given I would only be working for the 1 client, I have read that I can't register as a freelancer? This conflicts with what I've been told by the umbrella, who say they would register me as such in Germany! Confusing! Is there any way I could work as freelancer?
3. What tax liabilities could materialise if I work for less than 180 days and the contract is terminated, which could be a possibility?

It would be good to hear from folks who've been in a similar situation, or from anyone in fact, with advice on that above.

As I say, this would be a great help (I'm sure to other too) and would be much appreciated. First time post....

Cheers ;-)

Rez

I am with danbro.

good service, low rates.

regards,
Justme