Contracting in Germany - Umbrella/Ltd/MgmtCo?

[Aman]

I've been offered a second interview for an 6 month (poss rolling) gig near Munich in Germany which I really want.

The rate has been left open but they said to "factor in flights, travel and
accommodation costs to the rate", (though that can be arranged as they have loads of UK engineers there). The take home message was to quote them a rate for flights, travel, accomm paid and a rate for sorting that out myself.

I've always had that paid for me on previous overseas gigs and had corporate plastic supplied.

The agent dealing with it offered a choice of one of the umbrella companies they use, Agency PAYE or I can go Ltd. Agency PAYE usually equates to tulip massively reduced rates.
They also offered a choice of payment in Euros or Stirling?

I've been benched quite a long time,so looking at this as as getting a prestige client and work at the top of my CV with a decent living rate and the least amout of hassle with tax return, civil servants.

So for a Germany gig is it better to go Euro/Sterling, Management company/Umbrella /PAYE/Ltd.

How expensive is Munich and is it quite easy finding lodgings?

Are the Finanzamt still witchunting contractors? http://forums.contractoruk.com/accou...an-cometh.html

[northernladuk]

I guess you have done a search to find that article but there are a lot more topics on tax in Germany that might help...

Might find something useful here?

Germany site:forums.contractoruk.com/accounting-legal - Google Search

There is also an article on working overseas in the CUK main area.. The german one is here..

IT Contracting in Germany - Money & Tax :: Contractor UK

[MattFromEarth]

Hi,

Price wise Munich is probably comparable with London but in my opinion far nicer. Expect to pay around 1000-1500 euros a month for an appartment maybe a bit more if you want something a bit special in one of the better areas. Schwalbing seemed to be quite nice. You'll probably need to pay around 5000 euros upfront for the accomodation. Bonds, one/two months rental in advance plus agents fees etc. Also bear in mind that rentals in Germany can be quite quirky. You may have to supply your own kitchen. I kid you not.

Probably best not to use your own limited cpy and go down the Umbrella route provided that they are honest with how they conduct business. Do a search on "germany the taxman cometh" to see the mess which some people have landed themselves in.

Good luck

[northernladuk]

Probably best not to use your own limited cpy and go down the Umbrella route provided that they are honest with how they conduct business. Do a search on "germany the taxman cometh" to see the mess which some people have landed themselves in.

Good luck

<cough>

ow expensive is Munich and is it quite easy finding lodgings?

Are the Finanzamt still witchunting contractors? http://forums.contractoruk.com/accou...an-cometh.html

[sunflower]

By limited do they mean use a UK limited or that you are allowed to set up as a German freelancer (Freiberufler)?

If you do a contract in Germany, you can use a UK limited co provided you will not be present in Germany for more than 183 days. If you are keen on staying for a renewal, using a UK is not appropriate.

If you want to be in Germany for longer than that, you normally need to set up there in which case you would register in Germany and get yourself a German accountant (Steurberater). They can be cheaper than some managed schemes (like CXC Global). Retention can be 60%. You will need health and liability insurance.

You then also need to prove that you are "selbstandig" (freelancer) and have a couple of other clients. Proof reading technical documents would cover you for example. The tax office can say you are in "Schein Selbstandigkeit" (disguised self-employment) if not. Going into the German system can have other impacts on your tax position. Check that out with a specialist if you get the project.

If you want an umbrella and someone else to do the paperwork, make sure you have one that pays tax and contributions in Germany. If you end up on German payroll, you pay tax and social insurance. Offtakes can be high.


If they get you a place to stay, great. I have heard via via that finding a place in Munich is not easy.

You can see some examples of flats (but don't necessarily use this co, might be ok if you are stuck becuase they have commission charges). These ones will have kitchens and such.

Möblierte Wohnungen, Zimmer, Häuser und Immobilien mieten - HomeCompany - Das Portal für möbliertes Wohnen auf Zeit
Furnished accommodations, rooms, houses and properties for rent - HomeCompany Munich - Agency for temporary furnished accommodation

You could also try to find places via WG sites (Wohn Gemenischaft), but that can be a challenge as people normally want room mates who stay longer than 6 months.

April-June, book any flights home in advance as they can go up dramatically owing to public holidays.

If you go and want to use the rail system to see some of the country, you can get a train discount pass.

Good luck