Contracting in Germany
You might also find our other country guides to working abroad as a contractor useful too:
Contracting in Belgium
Contracting in France
Contracting in the Netherlands
Residency and registering for work and contracting in Germany
Health insurance in Germany
Tax rates in Germany
If you would like to discuss contracting abroad or have questions about tax please call 0500 152500 / 01442 275789, email: antony.edwards@sjdaccountancy.com or visit our main SJD International page.
Working in Germany
There are 3 main considerations for you as contractors (click the below links to read each page):
- Residency and registering for work and contracting in Germany
- Health insurance in Germany
- Tax rates in Germany
It is unlikely that contractors will need a Visa to work in Germany but let us deal with this first.
Do you need a Visa to work in Germany?
All persons remaining in Germany for longer than three months must have a residence permit (Aufenthaltserlaubnis), of which there are now two types. You can apply for one of them at the local Ausländerbehörde.
The rules for what you need to get a residence permit vary somewhat from place to place and according to your status. You'll certainly need a valid passport, proof that you have a place to live and proof that you can support yourself. Other things you may need to include is proof that you have a critical skill, proof that you are married, proof that you have independent means or a pension, and proof of health insurance (see below).
One person can handle the work on a residence permit for an entire family. Once the permit has been approved an appropriate stamp is placed in the individual's passport.
If you decide that you are going to stay in Germany you must have a registration certificate (Meldeschein). You get it at the Registry Office (Einwohnermeldeamt) that is responsible for your community or your city neighborhood. It's often located at a precinct police station. Registering is a simple matter of going there and filling out a form. They may want to see your passport and lease, so have them with you. There is no charge for this registration.
Every time you change your residence within Germany, whether you move next door or across the country, you must report this to the registry offices at both the old and new place of residence. This isn't an action directed at foreigners. Germans to must keep the police posted when they move.
The two types of residence permits are limited and unlimited. Persons with limited permits must leave the country after a certain period, though they can apply for an extension, obviously with unlimited ones there is no such restriction.
Which of these permits you get, and indeed whether you get a permit at all, depends on the circumstances. Perhaps you come from a member state of the European Union. In this case, your right to reside in Germany is all but unlimited.
With the exception of EU-nationals, citizens of Switzerland and nationals of privileged countries (e.g. USA, Japan, Australia, Canada, South-Korea, Israel and New Zealand), all foreigners require an entry visa for a stay of more than three months, or stays during which they want to take up employment for which a residence permit allowing them to work is necessary.
How to get a residency visa for Germany?
There are a few options:
1. Do it your self
2. Pay an agency to do it
3. Ask your client if they can help you do it, some companies have dedicated departments
Applying for and obtaining a visa does take time thus plan accordingly. Also note that the type of visa you apply for can affect future residency rights. Thoroughly investigate your options prior to applying.
To locate a German Embassy/Consulate in your country, use the Deutsche Auslandsvertretungen search engine function (in German) on the German Federal Foreign Office website.
More information, application forms and fees related to Visas and entry into Germany can also be found on the German Federal Foreign Office website.
If you have any questions about Contracting or would like any further advice please call our International team on 0500 152500 / 01442 275789 or email Antony Edwards: antony.edwards@sjdaccountancy.com
About SJD International
SJD International is a division of SJD Accountancy, the UK’s largest Accountancy firm for Contractors and Freelancers and has over 11,000 limited company contractor clients. SJD has an enviable reputation and have won more awards for customer service and accountancy excellence than any other firm in our market. Awards include: Accountancy Excellence from Accountancy Age, Best Contractor Accountant as voted by visitors to Contractor UK (UK's largest contractor website), Sunday Times Awards and various National Business Awards.
Contracting abroad can bring many rewards but it also carries extra responsibilities and challenges with regards to tax and in-country compliance. Few companies offer support to British and non-British contractors working overseas. However, SJD International has the skills and experience to support contractors working abroad ensuring they operate in a compliant and tax efficient way.
If you would like to discuss contracting abroad or have questions about tax please call 0500 152500 / 01442 275789 or email: antony.edwards@sjdaccountancy.com.
SJD Accountancy
SJD Accountancy are the UK's largest specialist provider of fixed fee, limited company accountancy services to contractors; we've been acting for contractors across the UK since 1992 and have more than 11,000 clients.
We are the only National specialist firm of accountants with offices in all major UK cities so you’ll never be far from your accountant. SJD also have more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATII, ATT, ACCA, CA, ACA, FCCA, ACMA. You’ll also be pleased to know that we are one of the lowest priced as well.
Free face-to-face meetings. This is another unique service, only SJD offers free face to face meetings - tax is complicated and sometimes only a meeting will do.
Unlimited access to your own dedicated accountant. No call centres, no outsourcing, no automated call handling. Simply telephone, email or meet your own dedicated accountant face to face.
Money back service guarantee. All your telephone calls and e-mails will be answered the same day or we will refund your monthly fee's.
Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market.
All inclusive low cost monthly package which includes completion of accounts, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, unlimited access to your accountant and all company returns. All this for a fixed monthly fee of £110 plus VAT, which is one of the lowest prices in the market.
If you have any question about contracting or would like any further advice please either contact your SJD Accountant or call our new client services helpdesk on 0500 152500 / 01442 275789 or email: nikki.hanlon@sjdaccountancy.com.
Appoint SJD Accountancy and never worry about your tax or accountancy affairs again!
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Choosing an accountant - For a full review
Step-by-step Guide to Contracting - Download a FREE copy of our guide
Limited or Umbrella? Can't decide? - We help you decide which is best for you
Guide to Contracting - All the best guides to contracting in one place
Expenses Guide - Know exactly what you can claim
Umbrella company guide - Everything you ever wanted to know about umbrella company services
IR35 Guide - A great plain English guide to IR35
