Germany Summary Guide

Germany Residence

Since the Immigration Act’s enactment in January 2005, non-EU resident foreigners wishing to immigrate to Germany usually need only obtain a residence permit. The new Act allows the bearer of a residence permit to work and reside in Germany, replacing the previous system, which required two separate permits for residence and for employment.

Non-EU persons intending to remain in Germany for longer than three weeks are required to acquire a residence permit (Aufenthaltserlaubnis). This is no longer mandatory for residents of other EU countries, but in practice it is probably a good idea to obtain such a permit, as they are usually necessary in order to secure a job, put in place a mobile phone contract, and other such bureacratic matters. (NB: Despite the less stringent requirements, EU residents must, in common with their non-EU counterparts, still make themselves known to their local Resident’s Registration Office, and also register with the police in their chosen town; a registration card will be granted, on provision of a completed application form, proof of permanent accomodation, and a valid passport or other national ID.)

Residence permits are available by application at the local Immigration Office (Ausländerbehörde). The documentation required is likely to include: Passport (or ID card), passport photos, certificate of health (and evidence of pension and/or health insurance), residence registration, proof of good conduct in previous country of residence, and proof of means of support. Sometimes, an applicant may need to prove that they possess a ‘critical skill’, and evidence of marital status.

Citizens emigrating from an EU Member State are generally granted automatic rights of residence, and may apply for a special EU Residency Permit, which is normally valid for five years and allows the same conditions as that of a residency permit. (And can lead, if desired, to the granting of permanent residence in Germany.)

Self-employed individuals may have to prove that they are qualified in their stated occupation, by membership of a professional or trade body, a VAT number or registration on a trade register. In addition, they must obtain a self-employment residence permit (Aufenthaltserlaubnis für selbstständige Tätigkeit), which will usually be granted if the individual in question is investing a minimum of EUR250,000 in their German operation, or is planning to create at least five new jobs.

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

Read replies | Reply | Start new thread

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

Read replies | Reply | Start new thread

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

Read replies | Reply | Start new thread

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

Read replies | Reply | Start new thread

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

Read replies | Reply | Start new thread