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Thread: Moving to EU

  1. #11

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    Quote Originally Posted by BlasterBates View Post
    Yes it is.

    Income of EUR 100,000 the tax is around EUR 25,000 but there are other deductions, so 71% is about right.

    You wouldn't be paying into their equivalent of National Insurance.
    Ok misread the post, thought he meant 71% tax, 71% in hand sounds about right

  2. #12

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    Quote Originally Posted by BlasterBates View Post
    Yes it is.

    Income of EUR 100,000 the tax is around EUR 25,000 but there are other deductions, so 71% is about right.

    You wouldn't be paying into their equivalent of National Insurance.
    Thanks mate. Is it not mandatory to pay NI in Germany? or working through an umbrella company by passes this. I read its 40% of the gross income ??
    so for €100,000, 40K will go to NI and then ~29% goes to taxes giving me ~43K in hand.

  3. #13

    More fingers than teeth

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    Quote Originally Posted by blackeyed View Post
    Thanks mate. Is it not mandatory to pay NI in Germany? or working through an umbrella company by passes this. I read its 40% of the gross income ??
    so for €100,000, 40K will go to NI and then ~29% goes to taxes giving me ~43K in hand.
    Normally as a Freelancer ("Freiberufler") you wouldn't pay the German equivalent of National Insurance. Unlike in the UK German National Insurance is not a tax. There is a rule similar to IR35 in Germany, however this is not a problem if you have contracts for several months and you are not permanently resident in Germany.

    There are umbrella companies that set you up as a "Freiberufler", or you can contact an accountant in Germany. Your agency will probably recommend one, the 71% he quotes sounds reasonable so get some information from them. You just need to make sure all your income is taxed in Germany and then there will be no problems.

    The tax isn't in bands as in the UK so the proportion of tax to pay will go up with your income.

    If you were to end up as an employee and not a "Freiberufler" then indeed it wouldn't be very attractive as you would be paying a lot of insurance including the mandatory health insurance. Your take home would be more like 50% perhaps even a bit less.

    Actually I checked the tax again and the calculator shows 29,000 on an income 100,000.

    I would get a quote from a reputable Umbrella before you decide.

    When I was in Luxembourg and Switzerland my net income was around 65% .
    Last edited by BlasterBates; 18th April 2019 at 07:54.
    I'm alright Jack

  4. #14

    Respect my authoritah!

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    In Switzerland you pretty much will be forced to go on payroll. Sometimes you can choose a brolly, sometimes you're on agency payroll. Social contributions will be deducted from your fee, and you'll be taxed at source. How much you're taxed depends on which canton you live in. (If you ever become a permanent resident, then it depends on which community you live in). There is mandatory health insurance for residents. ~300-400 CHF a month depending on where you live, with no exclusion for preexisting conditions.
    "Boom! Boom!" - B. Brush

  5. #15

    More fingers than teeth

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    Ireland Is an obvious choice but high tax and cost of living.
    Quote Originally Posted by Bean
    I admit that I'm a lazy lying cretin, but so what?
    25 June 2018

  6. #16

    More fingers than teeth

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    Most contracts in Germany now come under ANÜ which is similar to IR35 regardless if you're Freiberüfler or Selbständig, I turn them down as you're basically a disguised employee of the agency for a fixed term.
    Brexit is having a wee in the middle of the room at a house party because nobody is talking to you, and then complaining about the smell.

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