Working with Ltd in Germany Working with Ltd in Germany
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  1. #1

    Nervous Newbie


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    Feb 2012
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    Question Working with Ltd in Germany

    I do have a German passport but have worked for the last couple of years as a contractor in the UK via my own Limited.

    For my next contract I will be based in Berlin and quite likely I will continue contracting in Germany after that for one or two years.

    I'd like to keep my Ltd. but are not sure what I need to do so that everything is correct tax-wise.

    Any advise or knowledge exchange with people in a similar situation would be great!

    Many thanks
    Sissi

  2. #2

    Should post faster


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    Google "Zweigniederlassung Limited Deutschland" and you will see that you have to register your one-man-Ltd in .DE if you are going to be working there.

    I believe the German taxman is, shall we say, very korrekt on this point

  3. #3

    Nervous Newbie


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    Cool thx and what about myself who gets paid a salary from that Ltd?

    Because at the moment I am paying PAYE in the UK but I guess I need to stop that and set up some Einkommenssteuer-Stuff in Germany, right?

    Also....is it even worth keeping my Ltd in the UK? Basically, I want to avoid paying a hefty tax when pulling out all the money at once from the Ltd that is why I thought I keep it. But if at the end of the day I pay double tax or some crazy stuff like that it doesn't make sense.

    Hmmmm.....

  4. #4

    More fingers than teeth

    BlasterBates's Avatar
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    Yes you run a branch of your Ltd as if it were a GmbH.

    However in Germany it's normal to be a "Freiberufler". A Freiberufler just pays income tax and no "Sozialversicherung".

    However there is a rule that if you work for one client they may designate you as a "Scheinselbständiger". You can get round it for example by having an employee, not a family member. Maybe you could subcontract a bit of the work to an employee (a student looking to earn a bit).

    You can also be a "arbeitnehmerähnliche Selbständiger" and pay just the employees amount into the Sozialversicherung (EUR 500).

    Best take some advice from a German accountant when you get there.

    You won't pay double tax. If you cash in your Ltd and it's taxed in the UK the Germans won't tax it again.

    Anyone emplyoed by your Ltd in Germany needs to be employed in the German branch of your company so he will be on the German payroll.
    Last edited by BlasterBates; 16th February 2012 at 17:35.
    I'm alright Jack

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