Contracting in Germany

[Sai System Solutions]

Hello

I would like to work as a contractor in Germany. Could you please help me out on the following points?
1. How is the tax structure, if we register a company in Germany?
2. How is the tax structure, if we work under an Umbrella Company in Germany?
3. How is the tax structure, if we work as a contractor in Germany through agency in UK?
4. What is the normal hourly rate in Euros for embedded system guys with 14 years experience? (Please provide a range, if you are not sure)

Please help me out to understand these things better

With kind regards
John

[SueEllen]

I know this is your first post but there is a sticky here that will be helpful.

In addition this will help you here and if you go wrong you can face this.

On this forum we don't spoon feed people. This means you are encouraged to use the search box to find answers or search through google. Then when you find the answers or notice that you can only get answers from before 2011 you post that you have searched first but cannot find anything that is up to date.

[EXPATTAX]

@ Sai System Solutions: I know there is a lot of information in the thread which Sue Ellen referred you to. I hope you found this helpful. A lot of it is unfortunately not totally up to date (3 years or older - ). Let me know if you are still looking for some answers.

[stek]

Hello

I would like to work as a contractor in Germany. Could you please help me out on the following points?
1. How is the tax structure, if we register a company in Germany?
2. How is the tax structure, if we work under an Umbrella Company in Germany?
3. How is the tax structure, if we work as a contractor in Germany through agency in UK?
4. What is the normal hourly rate in Euros for embedded system guys with 14 years experience? (Please provide a range, if you are not sure)

Please help me out to understand these things better

With kind regards


John

1. Fearsome

2. Fearsome

3. Fearsome

4. Not sure but rates are generally much lower in my sector at least.

Finanzamt are not to be messed with.

[EXPATTAX]

Well, Germany is certainly far from being a tax haven and there is certainly tons of red tape. Not really surprising and I dont really know any other major industrialized country where this is significantly different. I guess what makes is scary is the fact that it is a different system, a different culture and a different language. Tax is usually difficult enough in your own country and dealing with tax issues in your own language can be quite a challange.

I have personally been working in German taxes for 20 years and deal a lot with cross border cases. So, I believe I can compare things a bit. In my opinion the German tax system is as good or as bad as any other (probably the latter). Great news is: if you know how to work it, it gives you huge potential for savings at literally zero risk (and running now risk is a massive factor in his game).