Working in Romania, German Agency

[Paddy]

If you are not in Germany there are no German tax implications. German agencies aren't a problem it is UK agencies that cause German tax problems, with the management co's they work with. You will probably find that provided you don't stay more than 6 months that you can charge through your Ltd and pay UK tax. You can't pay no tax at all unless you give up your UK residency, and say become a Cayman Islands resident.

You could make everone happy and register in the Cayman Islands as GmbH.

[BlasterBates]

If you are not in Germany there are no German tax implications. German agencies aren't a problem it is UK agencies that cause German tax problems, with the management co's they work with. You will probably find that provided you don't stay more than 6 months that you can charge through your Ltd and pay UK tax. You can't pay no tax at all unless you give up your UK residency, and say become a Cayman Islands resident.

[Moscow Mule]

If you are not in Germany for the duration of the project, why are you worried about German tax? I would invoice from your UK company, there's no way the Germans would be able to claim anything from you personally, or as a company.

Romanian taxation is another issue. For the sake of 6 months, I would "fly under the radar" and try not get involved in taxation there. However, to do this I wouldn't be signing any apartment lease contracts or the like...

[Brussels Slumdog]

Where are you currently resident

Hello,

I've read all the German tax posts on here but none seem to fit my case.

A German agency is recruiting Joe for a German IT company delivering services to a Romanian end-client in Romania.

The contract will be for 6 months. Joe will be a consultant for the German IT company delivering services to the Romanian end-client in Romania.

The agency has suggested I join a German management company to handle payments from the agency in Germany.

i.e. Joe-German MC-German Agency-German IT company

The consensus on the boards seems to be German management companies are rather dodgey and should be avoided.

Can I bill using my UK Ltd company? Whatabout Romanian taxes?

I'm very confused now...

Where are you currently tax resident?
Have you considered double taxation implication.
In some European countries in order to claim double taxation relief you need to prove that you were actually in the country that you are claiming relief.
Claiming relief from German tax but being in Romania may create a problem if
your are not a German tax resident.

[vladone]

Whatabout Romanian taxes?

Romania taxation bureaucracy is high and very complicated. I am sure you will consume all your time not for working but for bureaucratic things. If you are going to stay only for 6 months(or even more) don't register in Romania, "stay like a tourist". As an example in Romania if you are moving from a city to another you must to register in the new city but nobody does that.

[JoeHo]

Hello,

I've read all the German tax posts on here but none seem to fit my case.

A German agency is recruiting Joe for a German IT company delivering services to a Romanian end-client in Romania.

The contract will be for 6 months. Joe will be a consultant for the German IT company delivering services to the Romanian end-client in Romania.

The agency has suggested I join a German management company to handle payments from the agency in Germany.

i.e. Joe-German MC-German Agency-German IT company

The consensus on the boards seems to be German management companies are rather dodgey and should be avoided.

Can I bill using my UK Ltd company? Whatabout Romanian taxes?

I'm very confused now...