Reply to: Contracting in Germany

[Olly]

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[Fred Bloggs]

Thank you. That is as I would understand it.

[Northerner]

Do you know how many days you are allowed to spend in Germany before register for residency?

Only when you're a resident do you become liable for tax.

If you intend to spend more than 3 months in Germany then you must register your residence within 7 days of arrival.

Generally speaking (as German taxation/Double Tax treaties are too complex to explain in a few sentences) if you spend more than 183 days physically in Germany (it does not have to be continuous) in a calendar year then your worldwide income would be taxable in Germany.

[scooterscot]

Sorry, but this has just got even more confusing to me. Are we suggesting here now that I could commute weekly to Germany for (say) 2 years but because it is less than 180 continuous days, I would pay no tax in Germany? That just doesn't seem right to me.

Resident, resident is the keyword here let me repeat resident....

Do you know how many days you are allowed to spend in Germany before register for residency? It takes less than a minute to find out, go on have a google.

Only when you're a resident do you become liable for tax.

If you don't intend to spend any more days than required to register for residency you don't have any individual tax worries.

[Fred Bloggs]

Sorry, but this has just got even more confusing to me. Are we suggesting here now that I could commute weekly to Germany for (say) 2 years but because it is less than 180 continuous days, I would pay no tax in Germany? That just doesn't seem right to me.

[Olly]

erm ok i'm being a bit dim here...
tax resident for that period....so say i live in germany for 200 days...id pay german tax on any income in those 200 and then i go back to uk and pay uk tax for any other days?

[scooterscot]

I'm not sure what you are suggesting but the German rule is if you are resident in Germany for a continuous period of 181 days, then you are tax resident for that period, even if it spans two tax years.

WHS

I worked under a similar rule while working in Norway except it was 60 days over one year. A return flight to the UK would reset the clock.

Most of Europe operates to something similar. It's not rocket science although reading some of the posts in here might make you think otherwise.

[scooterscot]

erm so you could be one day into the second German tax year and still staying in Germany tax year - and in Germany more then 180 in the year before and you would be liable to German tax in the second year?

I don't intend to be resident while I'm over there. I'll spend the bulk of my time working in the UK... but there will be times I'll have to spend up to 180 days in Germany. (not continuously)

[tim123]

erm so you could be one day into the second German tax year and still staying in Germany tax year - and in Germany more then 180 in the year before and you would be liable to German tax in the second year?

I'm not sure what you are suggesting but the German rule is if you are resident in Germany for a continuous period of 181 days, then you are tax resident for that period, even if it spans two tax years.

This is not how the UK rule works as 91+90 days in the UK would not make you tax resident for either year.

HTH

tim

[Olly]

erm so you could be one day into the second German tax year and still staying in Germany tax year - and in Germany more then 180 in the year before and you would be liable to German tax in the second year?

[scooterscot]

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.

Cheers.

I'm familiar with this rule, have never exceeded it before. I intend to spend the majority of my time in the UK.

[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.

[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?

[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

[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".