Solution for Contracting in Germany

[reddog]

Sorry for jumping on this one, but are there any 'straight' Unbrella type companies in Germany that won't get you in trouble?

[The Lone Gunman]

Thanks but let me precise my position. The contract is between a UK agency and the final German clinet. Is it possible for me to stay 6 months in Germany work for the end of client but have my UK limited company bill the UK agency and pay tax only in the UK and not have to register in Germany andpay tax there?

It is a complicated situation which has been done many times.
1. 183 day rule.
2. Seat of business.

If you are in country less than 183 days then you can remain UK tax resident.
If you are a 1 man company then your business may be regarded as resident where ever you are. If that is the case then both you and your company will have to pay German tax. You will have to pay corp tax on your profits in the UK too (no double tax agreement for companies).

[BlasterBates]

probably

[albeil]

There is no easy way.

Assuming you're billing in Germany and not to a UK co. on a short contract then:

Don't use a management co. Any management co. that suggests you be employed by them and splits the income, syphoning some of the money abroad, is getting you into trouble.

You need to become a "Freiberufler" (freelancer), and use a local tax advisor. Using a UK accountant who delegates to a German accountant will simply be more expensive than using a German accountant directly.

It is normal to bill the client directly as an individual, so set up a local German business account, and charge VAT. Your tax return done at the end of year, as self-employed income, and attach a P&L statement,

In the first month or two the important thing is to register with the German authorities. But do not register a "Gewerbe"(Business). In fact as a freelancer you just start billing and handing over monthly VAT tax returns. I sent a letter saying that I was operating as a Freelancer. That makes it clear at the end of the year that this was income as a "Freiberufler" and so on a lower tax rate.

Thanks but let me precise my position. The contract is between a UK agency and the final German clinet. Is it possible for me to stay 6 months in Germany work for the end of client but have my UK limited company bill the UK agency and pay tax only in the UK and not have to register in Germany andpay tax there?

[chef]

There is no easy way.

Assuming you're billing in Germany and not to a UK co. on a short contract then:

Don't use a management co. ...

You need to become a "Freiberufler" (freelancer), and use a local tax advisor.

WHS

[BlasterBates]

There is no easy way.

Assuming you're billing in Germany and not to a UK co. on a short contract then:

Don't use a management co. Any management co. that suggests you be employed by them and splits the income, syphoning some of the money abroad, is getting you into trouble.

You need to become a "Freiberufler" (freelancer), and use a local tax advisor. Using a UK accountant who delegates to a German accountant will simply be more expensive than using a German accountant directly.

It is normal to bill the client directly as an individual, so set up a local German business account, and charge VAT. Your tax return done at the end of year, as self-employed income, and attach a P&L statement,

In the first month or two the important thing is to register with the German authorities. But do not register a "Gewerbe"(Business). In fact as a freelancer you just start billing and handing over monthly VAT tax returns. I sent a letter saying that I was operating as a Freelancer. That makes it clear at the end of the year that this was income as a "Freiberufler" and so on a lower tax rate.

[albeil]

A lot of posts on this subject but not one stating clearly what is the best solution for contracting in germany. Could someone explain or point me towards the best source of info?

Thanks