Decent Umbrella companies for contracts in Germany

[warsteiner]

Hi,

I've previously only had permanent roles but am in the process of negotiating a contract role. The role will be for 6 months and I have had a look into using a Ltd company but as this is my first contract I will probably use an Umbrella. I could take a chance and go as a freelancer in Germany but I am planning to stay there for the full 6 months (rent a flat, prob open a bank account, etc.) so this would probably be too risky. Does anyone have any experience of using a UK brolly while working abroad? Any good companies that people can recommend or even any bad one's that should be avioded?

Thanks

Dave

[BlasterBates]

Forget umbrella for Germany.

You need a personal German tax advisor, its an absolute must.

You also want to go in as a "Freiberufler".

Whatever you do don't register as a "Selbständig". But the German personal tax advisor will guid you through that.

As a Freiberufler you don't register at all (quirk of German law dating back to the last century), you don't need a company, you simply bill the client/agency in your own name, and charge VAT. I'm sure colleagues will advise you. Actually there is surprisingly little bureacuracy involved.


Whoops if you're staying for only six months forget what I've just said. You can bill through a brolly or Ltd for 6 months. Just check VAT. Brollies don't really protect you.

[warsteiner]

Thanks for the info, as the contract is only for 6 months I was thinking a brolly was the best way but there is a good chance that the contract could be extended. I spoke to a German Accountant last week and he seems to think that it's a bit dodgy if you are only working for one employer for 6 months or more as the Finanzamt will say that you are a permanent employee and need to pay all of the taxes that permanent employees will pay

[The Lone Gunman]

Laws have changed in Germany since I was last there so can not offer advice, but UK brollies are usualy not as good as offshore ones.
I have used and often recomend Pearl Systems. Others have tried them and found them OK so far.
They do operate in Germany and will at least offer advice on best setup.

[BlasterBates]

Thanks for the info, as the contract is only for 6 months I was thinking a brolly was the best way but there is a good chance that the contract could be extended. I spoke to a German Accountant last week and he seems to think that it's a bit dodgy if you are only working for one employer for 6 months or more as the Finanzamt will say that you are a permanent employee and need to pay all of the taxes that permanent employees will pay

If you're longer than 6 months Freiberufler, through a personal Tax advisor is the best route. If you're a UK employee and you overstay you can become liable for social security and tax fur the full tax year, not just 6 months. The tax office will probably try it on, as it is a matter of interpretation, whether you should.

Only use officially registered German tax advisors, UK German tax experts usually don't understand the nuances of German law.

[warsteiner]

Thanks for the replies guys,

I've spoken to CPM who also have contracts with employees in Vodafone Germany and they seem pretty good and I'll check out Pearl Systems as well. I'm going to push the agent to see the likely length of the contract and if it's 6 months then I go with the brolly, more than 6 months with a German Accountant.

[contractdude]

Did you end up using CPM, do you know anyone who has?

[soophy]

CPM??

May i know fullform??

[contractdude]

CPM - ContraNet Project Management Limited