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Germany Summary Guide

Living and Doing Business in Germany

Germany is situated in the centre of Europe and thus borders nine European countries and Russia. Geographically Germany is very varied; in the north, Germany is composed of low-lying plains, in the centre the ground is higher with many of Europe’s largest rivers, contrasting with the higher mountainous regions of the Alps in the south, which experiences cold, often wet, yet temperate weather in both the summer and winter. Germany has a relatively low crime rate.

Since reunification of East and West Germany (a process which reached its conclusion in 1990), there has been a great deal of investment in the country’s infrastructure, meaning that among other consequences, the telecommunications system in place in Germany is one of the world’s most technologically advanced. The country had 51.5m telephone lines in use in 2008, and 23.8m computers with internet access. Around 62 million people in Germany are connected to the Internet.

German is the main language, with comparably few speaking other languages. The most popular German-language newspaper is Bild Zeitung, commonly known as Die Bild. There are few foreign-language newspapers, although it is possible to have foreign newspapers delivered to Germany and there are a number of online newspapers that target expatriates in Germany. The principal religions in Germany are Roman Catholic and Protestant (with 34% each) and Muslim (3.7%). Germans make up 91.5% of the population, Turkish 2.4%, and the other (6.1%) made up largely of neighbouring European nations.

Germany adopted the Euro as its currency in 1999.

 
 

Germany Summary Guide Contents

 Germany Summary

 Germany Summary Chart

 Germany Residence

 Taxation of Business People in Germany

 Living and Doing Business in Germany

 Business Forms in Germany

Latest Comments

Expat Brit

Hi,

I am facing a dilemma and would like to invite any reader to advise me.

I am a Brit who has lived outside UK since 1993- initially in Belgium (5 years) & subsequently in 4 African countries. After a year outside UK, the UK Inland Revenue confirmed my status as ‘non-resident’ for tax purposes and as I have had no income in UK, I have not completed a UK tax return for many years. I visit UK very rarely, normally for one or two weeks per year.

In May 2011, I was made redundent by my employers, who were downsizing. This coincided with a move to retire in the Netherlands, where I now have official residency (my wife is Dutch). I thought that, at 63 years of age, I would be unlikely to find suitable employment; in fact, I have not tried hard and had resigned myself to permanent (but slightly premature) retirement.

However, to my surprise, I have recently been approached (through a mutual acquaintance) by a company that wishes to use my skills on a project in the Isle of Man. The role, if & when confirmed, would see me working for about 10 days a month in Isle of Man, with about 5-7 additional days per month, working from home. Contract will be for about two years. The firm has asked me to confirm if I would prefer to be paid (and therefore be taxed) in Netherlands or Isle of Man, the idea being that I create a self-employment entity for this employment. I have no data on which to base a response. Given Isle of Man's traditional ‘low tax ‘environment, are there any benefits to declaring an income in IOM? Are there any Isle of Man residency implications? Netherlands takes a tax cut on total world wide income, and, as I have never had any contact with the Dutch authorities, I am reluctant to start such a relationship now. Do I have to declare income in both countries, with a breakdown prorata to the time spent in each jurisdiction? Should I declare income to UK Inland revenue?

If anyone has pertinent advice on these points, I’d be grateful to hear them.

TJM @ Eindhoven, NL

T. Dog

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Jersey vs. Malta??

Hi, I live in South Africa, and along with 2 business partners (one in South Africa and one in Ireland - all South African citizens though) are setting up a company that designs Smart phone applications. As they will be sold on the various platforms (none of which operate out of South Africa)we have to list our company as operating out of Ireland anyway. As such, we have decided to set up our company in the best tax country and are wanting info on whether Jersey or Malta is best? If anyone has some inside info we would really appreciate it!! Thanks!Mary

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Purchasing investment-link insurance for my staff

Would that count as income tax to my staff? And would that count as expense to my company?Michael

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Irish crisis - effects on small business?

Hi all,

Just wondering if anyone 'on the ground', as it were, might be reading and able to help me...I was considering relocating my hairdressing business from the UK to Ireland before the economy started to go properly belly-up...now, not so much.

Are things as bad as they seem over there, or is it being over-hyped by the media? And is the government still keen to support small business people? Cos if not, I'll look elsewhere...

Thanks,Kate

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Living in France contracting to Australian company

I am moving full time to France in Jan 2012 where I will be working as a freelance contract engineer to a number of Australian based companies. It is my choice to move to France not a work requirement. I will be renting my house out in Austrlalia and renting a house while I am in France. I hold both EU & Austrlain citizenshiip. I am married with 2 young children. Approx total family income $100k AUD.
Do I pay tax in France or Australia or both ?
Any help or guidance would be much appreciated.France move

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