Reply to: Moving to Germany. Who to inform, P85?, NHS?

[charlieabc]

Hello IT Contractors,

I shall be moving to Germany next month and spending 14 months on a contract.

I was reading up and apparently I need to fill out a P85 form and let the NHS know that I shall be moving etc?

Even though I shall still be maintaining a home here in the UK is there any requirement from me to do?

Does anyone have any first hand experience of who can advise how they went about it?

Thanks in Advance


M

I think Germany has agency rule? I was considering that too? Any advice will be helpful.

[BlasterBates]

Hey guys, revisiting an old thread not to create yet another topic about Germany.
Tried reviewing the existing threads and it looks like most of the people have questions/answers regarding contracting for a German client, but I have the opposite situation.
My OH and I are moving to Berlin later on this year. I'm contracting through my UK Ltd for a UK client, and I'm planning to continue doing that for at least the first 6m I'm there (remote).
I don't want any trouble with German authorities, so want to do everything according to the book (so will register as a German tax resident from day 1).

1. So far I contacted a tax lawyer in DE and she said it's possible to continue paying myself UK dividends and pay German dividend tax (25% + solidarity). I've also read that since I won't qualify for any tax-free allowance, it would make sense to actually pay everything as salary, instead of the usual min. salary + dividends (salaries are expenses, so won't pay corp tax on those), but then I would need to pay all income taxes + social etc. etc. as a regular employee?
2. If I simply continue paying myself dividends, do I need to register as Freiberufler and essentially hire myself? What will be my status in Germany - Freiberufler? Enterpreneur? Unemployed?
3. Someone mentioned that if I'm the owner of the company and effectively the company is being operated from Germany, even if it is registered in the UK, I'll need to pay German corp taxes? Is that true?

Do you guys know what would be the best way to organize that? Is it all worth it? Maybe I should just register as a Freiberufler and invoice my UK clients as that entity (client wouldn't mind, they are my close friends)?

P.S. gonna post a similar question over at ToyTownGermany forum once they approve my registration

Lets put it this way if you were to invoice a German client via your Ltd and then pay yourself dividends taxed at 25% you'd have the local tax office down on you like a ton of bricks. I could imagine that you might get away with it for a while if this is a UK client as they won't be auditing the client. The only thing that would be visible would be the dividends from the company.

My advice however would be to set yourself up as a Freiberufler as you suggest, in which case you don't pay Social Insurance, which saves you a lot of money and invoice them directly. This would be then make everything definitely legal rather than possibly legal and you would have no problems with the tax office. If you were to work indefinitely paying only 25% tax, at some point you may be flagged up as suspicious and the tax office might sniff around and make your life hell.

[timurso]

Hey guys, revisiting an old thread not to create yet another topic about Germany.
Tried reviewing the existing threads and it looks like most of the people have questions/answers regarding contracting for a German client, but I have the opposite situation.
My OH and I are moving to Berlin later on this year. I'm contracting through my UK Ltd for a UK client, and I'm planning to continue doing that for at least the first 6m I'm there (remote).
I don't want any trouble with German authorities, so want to do everything according to the book (so will register as a German tax resident from day 1).

1. So far I contacted a tax lawyer in DE and she said it's possible to continue paying myself UK dividends and pay German dividend tax (25% + solidarity). I've also read that since I won't qualify for any tax-free allowance, it would make sense to actually pay everything as salary, instead of the usual min. salary + dividends (salaries are expenses, so won't pay corp tax on those), but then I would need to pay all income taxes + social etc. etc. as a regular employee?
2. If I simply continue paying myself dividends, do I need to register as Freiberufler and essentially hire myself? What will be my status in Germany - Freiberufler? Enterpreneur? Unemployed?
3. Someone mentioned that if I'm the owner of the company and effectively the company is being operated from Germany, even if it is registered in the UK, I'll need to pay German corp taxes? Is that true?

Do you guys know what would be the best way to organize that? Is it all worth it? Maybe I should just register as a Freiberufler and invoice my UK clients as that entity (client wouldn't mind, they are my close friends)?

P.S. gonna post a similar question over at ToyTownGermany forum once they approve my registration

[Talos]

Contracting In Germany

I have been in Munich for 2 years on a Contract, I am there via a UK agency with a satellite office in Berlin, as i left the UK a long time ago I run a limited company out of Poland (19% tax) the Agency pay me to my limited company, There are different views about being paid into a non German Company by many UK agencies whom try and sell you an umbrella solution however from what I was told by the German tax authorities is that as long as my Limited company has other customers other than my client in Germany I can officially use this company without the need to register under the German laws.

I do however need private medical insurance the NHS EHIC card will not cover all medical expenses.

[SueEllen]

If you are working in Germany, but are being paid to your UK limited company in €. Do you then charge VAT? The German VAT is 19%.

Please read the post above.

[neddorsey]

If you are working in Germany, but are being paid to your UK limited company in €. Do you then charge VAT? The German VAT is 19%.

[stek]

anyone??

If not a visitor or tourist enjoying EU freedom of movement then you legally HAVE to register your presence in Germany with the authorities.

That's when they get their fingers into you. Remember being an EU citizen doesn't mean you can wander about willy-nilly, you have to abide by local laws and that means registering your presence, regstering for tax/social security etc.

[SueEllen]

anyone??

There is a forum called Toytown which is a German expats forum. Google it. There is probably more info on there.

Like with this forum you should be able to search it via Google.

[Mr Microsoft]

anyone

anyone??

[Mr Microsoft]

Germany

Are you direct with the German client or through an agent? If through an agent, where are they located?

Through the German office of a British Agency.

[WTFH]

Are you direct with the German client or through an agent? If through an agent, where are they located?

[Mr Microsoft]

Contract in Germany

New question to old thread.

I have am in reciept of an offer for a four month contract in Germany, I have my UK LTD company and was wondering what would be the least hassle\tax efficient way to set myself up.
I will start with four days a week in Germany moving down to three after a month.

Do I need to setup myself in Germany as a contractor and other associated gubbins or can i just invoice through my UK LTD and inform the German Tax authorities that I will be paying tax in the UK so that the don't come after me?

When I germany, i'll be staying in hotels\Airbnb and maintaining my home in the UK and will be flying back every week.

Thanks in advance.

[Tightfit]

Why do you obsess about SC roles? Rates aren't any higher and they are usually positioned in some shiitehole town in the back of beyond which costs a fortune to get to.

HRMC Newcastle, DVLA Swansea, Met Office Exeter, ONS Newport and DWP Lytham for example.

Are yes - the Contractors equivalent of being - sent to Siberia.

[clearedforlanding]

Hi All,

Very interesting to read your thread. I'm a UK contract of 12 years, recently married a German and looking to move to Germany an ideally retain my IT contractor status.

Have seen various contracts in Germany pop up over the years, even contracted for multiple German organisations in the UK. However - having difficulty finding a reliable job site with IT contractor roles in Germany. If you have any ideas they will be gratefully received.

Danke

Call up the agencies with a presence there, Manning Global, Alexander Mann etc. - do your research - ask, them what they have got, get a gig, network like crazy & then aim to go direct to client in DE. German business culture IMHO makes it a lot easier for a manager with clout to plug you in as a supplier SAP.

[Analyzer]

Where did you source the German IT contract?

Hi All,

Very interesting to read your thread. I'm a UK contract of 12 years, recently married a German and looking to move to Germany an ideally retain my IT contractor status.

Have seen various contracts in Germany pop up over the years, even contracted for multiple German organisations in the UK. However - having difficulty finding a reliable job site with IT contractor roles in Germany. If you have any ideas they will be gratefully received.

Danke