Germany: Anyone worked onsite while Freiberufler application being processed?

[lecyclist]

Hi,

I will soon be working in Munich for 6 months (UK resident, working onsite in Germany for German client, payed by UK agency) and I have 2 payment choices open to me.

1. Get paid by agency approved management company (the MC treats me as Freiberufler, but charges me 5% for the privilege).
2. Get paid by UK agency into a German bank account in my name, but only if I am already registered as a Freiberufler.

Without debating the nature of Freiberufler status, multiple clients etc, and assuming I can jump through those hoops.. For anyone who has worked as a Freiberufler in Germany, did they just arrive in Germany, get a temporary tax id while their Freiberufler application got processed, and gone onsite to work for a client? Or did everyone work through a MC first until their status was approved, and only work as a Freiberufler on their next contract.

I would like to do all the registration myself and avoid using the MC. If I really can't do it myself off the bat this time, fair enough.. I'll use the agency MC.

All advice appreciated.

[BlasterBates]

There is no registration process to be a freiberufler as such.

What they mean is you need a VAT reg number from the Tax office. No tax number no invoice.

Getting a VAT number is very simple. You just ask for one.

[lecyclist]

There is no registration process to be a freiberufler as such.

What they mean is you need a VAT reg number from the Tax office. No tax number no invoice.

Getting a VAT number is very simple. You just ask for one.

Thanks for replying. According to the agency, the client naturally wants to comply with German employment law. But of course the agency is nudging me towards the MC route, telling me that it is not possible for me to get setup by myself as a frieberufler in a timely fashion to the satisfaction of the client.

This is my understanding of what the tax authorities, the client and the agency requires, for me to work as a Freiberufler.

Tax Authorities
1. An address that I'm staying in Germany (could be a hotel), passport, contract indicating I will be working in Germany for a German client for a certain period of time.
2. Proof of private health insurance (I've also read this is optional, but I would seek this anyway).

Agency
1. A recent correspondence from the Finanzamt on their headed paper with my tax number on it.
2. The name of an accountant in Germany that deals with the Freiberufler.
3. The end client must be German and be billed in Germany
4. The Freiberufler must be paid into a German bank account in the name of the Freierberufler

Client
1. Contractual compliance with German employment law.
2. Worker who has registered with Finanzamt and pays tax in Germany.
3. Worker has public and personal liabilities insurance


So my understanding from this is, I can get private health insurance, public and personal liabilities insurance, and a German accountant (steuerberater) all setup before I arrive (I have already contacted an accountant in Munich). The client is still concerned with 1&2. Assuming I arrive on monday and can get an appointment with the Finanzamt, with an invoice from a hotel I'm staying at that week, my contract of services, and offer of help with form filling from my steuerberater.. do you think I could be client-side legal right away, or does it all take time to process?

To make the agency happy point 1, they would want something provided by the Finanzamt with my tax id on it. Could the Finanzamt do this right away? Point 2, I assume I could get a bank account setup pretty quickly once all the other paperwork has been provided. And anyway, I can't see why this would bother them if clientside compliance was ok (it would just mean they can't pay me until I get a German bank account).

Have I understood all this correctly or am I missing some understanding that will compel me to use the agency's recommended MC? If I have understood, is it reasonable for me to present this case to the agency, or can you see a reason why they may reject my request? If there is a timeconsuming step of compliance hinted at by the MC ("all paperwork can take a few months to process in Germany") then I know I will need to work through the MC.

Thanks in advance for any advice.

[SueEllen]

Have I understood all this correctly or am I missing some understanding that will compel me to use the agency's recommended MC? If I have understood, is it reasonable for me to present this case to the agency, or can you see a reason why they may reject my request? If there is a timeconsuming step of compliance hinted at by the MC ("all paperwork can take a few months to process in Germany") then I know I will need to work through the MC.

Is the agency getting an "introduction fee" from the MC, or is the MC as subsidiary of the the agency?

[lecyclist]

Is the agency getting an "introduction fee" from the MC, or is the MC as subsidiary of the the agency?

The agency claims impartiality of course. Although if I was the agency's director I would ensure I was getting a kickback one way or another (MC is xxx, disguised in case they are googling regularly!!)

[BlasterBates]

The client sometimes put demands on for you to demonstrate you are a "Freiberufler". So if you can't sort it out jut go with the MC.

They're worried about being liable if you are deemed to be an employee I think. They will also want to be sure you are setup with a tax code. That's a no go, though that is usually only important for your first invoice.

Legally you don't need to be registered anywhere to go on the client's site, but I can imagine the client might get his knickers in a twist if you don't, even though it shouldn't really concern him.