Contracting in Germany

[BlasterBates]

How much does one expect to pay in tax for a year. I am registered as a freiberufler, renting in Germany. To keep things simple, lets say you earned 100,000Euro for the year.

I've read some posts here saying you get to keep about 65%, but i've read eslsewhere that you could be paying out 45% to th taxman due to income being in the higher bracket.

correct you'll pay roughly 33-34000 in tax.

[darmstadt]

correct you'll pay roughly 33-34000 in tax.

This could change quite a bit depending upon your circumstances. For example a married person is in a totally different tax bracket and you you will pay a lot less tax. Also by putting your kids onto your tax card you can save a fair bit as well. This is why when working in Germany you really should get a German accountant who knows the system.

[BlasterBates]

yes that's Steuerklasse 1 single, but that's the maximum you'd expect.

If you have a wife then you have your marriage allowances and kids you get some back as well.

[Olly]

yes that's Steuerklasse 1 single, but that's the maximum you'd expect.

If you have a wife then you have your marriage allowances and kids you get some back as well.

erm....but would 34K be the total of all deductions, social insurance etc? That can be well into the thousands of Euro a year. From what I understand, all deductions as single bloke without too many claimable expenses would be quite a lot more than 34%.

It's early days in my investigations but it seems I can't do what I do in the UK which is receive up to the 40% band each year and leave rest in company for rainy day/pensions/close down and pay 10% CGT/re-invest in company!!!

[BlasterBates]

No that's it. You don't pay Social Insurance, which would cost you EUR 500 a month if your not truly self employed. If your status as a Freiberufler is called into question there is an additional 5-10% Gewerbesteuer

What you seem to be referring to is dedctions as an employee not as a freibrufler.

These additional thousands you refer to are avoidable.

[Slumdog]

I was hoping for it to be much less but not likely by the sounds of it.

Also together with the unfortunate issue of, which i am in the process of

http://forums.contractoruk.com/accou...an-cometh.html

my position at the moment is not the most ideal.

[BlasterBates]

I was hoping for it to be much less but not likely by the sounds of it.

Also together with the unfortunate issue of, which i am in the process of

http://forums.contractoruk.com/accou...an-cometh.html

my position at the moment is not the most ideal.

OK but going forward plan for your 65% and get a good accountant. Freiebrufler is the way to go. Good luck with "other problems".

[Slumdog]

The accountant I already have, who has been dealing with my situation for the last 8 months. Mr H, if you know of him...

i think its too far gone to change

[scooterscot]

Have been reading over this thread but I'm not sure if my situation is covered...

Possible work in munich for a year.

I already have two contracts on the go, one in the UK and another in Norway so this will be the 3rd.

I'll be commuting to Munich from Edinburgh every weekend, or fortnight.

I'll be invoicing from my UK Ltd.

Have I missed anything?

[BlasterBates]

There's an 180 day rule very similar to the one in the UK, just make sure you don't exceed and tax in the UK. i.e no more than 180 days in any continuous period even if it spans two tax years.