Contrating/tax laws in gemrany

[jambo1967]

i could potentially have a 6 month contract in germany possibly a lot longer all going well.can someone please advise on taxation rules in gemrnay etc as my agency is referrign me to a "prefered supplier" who on face of it tkae money for nothing befroe i even pay german tax/NI.all in all it leaves you with 55% take home pay which is not worth my while

does anyone know the best schemes for a UK resident to negate tax in Germany i.e by negating expenses etc.any helpful links posts would be appreciated before i ask my accountant too

[northernladuk]

Funny that SuitYou asks a question about Germany and then a first time poster comes on and asks a similar question isn't it......

[stek]

Contrating/tax laws in gemrany

Hard to see a single word spelt correctly in that post!

[northernladuk]

Do you think I can post a rude smiley in this thread and get away with it?

[Andy Hallett]

Contrating/tax laws in gemrany

Tax rates in Germany are circa 45%. Hence 55% retention.

I am not an expert on this.... However from the details you have posted the agency will make you contract via a management company who will pay your taxes in Germany. Potentially you could operate on freelance basis via your limited company but that would likely be capped at 183 days.

[jambo1967]

Funny that SuitYou asks a question about Germany and then a first time poster comes on and asks a similar question isn't it......

Thanks for your positive input

Hard to see a single word spelt correctly in that post!

Spellchecker on iPad oh and likewise thanks for your thorough info overload

[jambo1967]

Tax rates in Germany are circa 45%. Hence 55% retention.

I am not an expert on this.... However from the details you have posted the agency will make you contract via a management company who will pay your taxes in Germany. Potentially you could operate on freelance basis via your limited company but that would likely be capped at 183 days.

Unfortunately they can't operate with your UK ltd company.i find the figures quite staggering to the extent why do uk contractors go there to work if sums are correct

[sunflower]

Tax rates in Germany are circa 45%. Hence 55% retention.

I am not an expert on this.... However from the details you have posted the agency will make you contract via a management company who will pay your taxes in Germany. Potentially you could operate on freelance basis via your limited company but that would likely be capped at 183 days.

Andy is right if you use a management company, you will have to pay tax and social insurance. You can set yourself up as a freiberufler or freelancer over there with a German accountant. (Don't go for the management companies offerings of an accountant service or self-employed solution before you check out some tips on a local steurberater yourself, it might be cheaper). A self-employed freelancer will need to get health insurance but would not be obliged to pay social insurance via the payroll. You will have to proove that you have more than one client in the tax year as well. You can hopefully retain a bit more as self-employed, eg 60%. It really depends on how long your contract will be.

Check the forum postings and guides out on Germany.

[suityou01]

Funny that SuitYou asks a question about Germany and then a first time poster comes on and asks a similar question isn't it......

Ok which one of you is it?

[darmstadt]

You can hopefully retain a bit more as self-employed, eg 60%.
Check the forum postings and guides out on Germany.

It also depends upon your marital status as well. A single person pays a hell of a lot more tax than a married person, and then if you're married it depends upon your joint income. Another factor is children and if they're on your tax card or not, I have half my son on mine and that once again changes my allowances. This is why, if you're going to work in Germany for more than the 183 days, get a German accountant. The Finanzamt are not averse to changing the allowances for self-employed half way through a tax year.