Taxation of UK Expats or Freelancers in Germany

A British employee who is sent to Germany by his/her firm or an entrepreneur planning to provide services as a freelancer within Germany sooner or later are faced with a number of quite complicated issues regarding taxation, social security contributions and pension rights. In many cases the individual advice of a counselor should be sought. The following links will help to create a basic understanding of the matter:

On HMRC.gov.uk there is plenty information on tax and national insurance for UK employees going to work in another EEA  country: see here and here and here. Self-employed persons that wish to move to such EEA country or at least to provide services there, find many answers here. This page here (“Income Tax when leaving UK”) explains – from a UK perspective – whether income tax must still be paid in the UK or in Germany.

The German Statutory Pension Fund has published a 70 page brochure on many aspects of Living and Working in Germany.

The German Central Tax Office (Bundeszentralamt für Steuern) too offers a lot of helpful information on its website which is also available in English. The left column provides the sections:

These pages will answer many questions you may have on income tax, PAYE and national insurance issues. In case you plan to open a company in or relocate a company to Germany this raises additional issues which are dealt with here.

The law firms Graf & Partners (Germany) and Lyndales (UK) have many years of experience helping entrepreneurs with their business start up or expansion. Also, we have a network of professionals in the areas tax, IT, marketing and business consulting. So, should you get tangled up in red tape, do not hesitate to contact German Solicitor Bernhard Schmeilzl at +49 941 463 7070 or by email at: schmeilzl [at] grafpartner.com