Present in the country
for more than 180 days in a calendar year, or 180
days continuously over two consecutive fiscal years.
Tax residents pay tax on German and worldwide income
Taxes levied at state
and federal level.
Differing requirements
with regard to residence permits depending on whether
the applicant is an EU resident or not. Residence
permits not mandatory for EU residents, but recommended.
Cost
of Residence Document (approx)
Work
Permit Required
Work
Permit Authority
N/A
Residence permit grants permission
to work.
Local Immigration Office (Ausländerbehörde).
Personal
Income Tax
Corporate
Income Tax
Social
Taxes
Progressive rates, imposed separately
on wages and other income (from 15%-45%), plus ‘solidarity
surcharge’ of 5.5%, resulting in effective
rate of approximatelty 47.5%. ‘Church tax’
of 9% also imposed in certain states.
Corporate income tax is imposed at
15%, plus a 5.5% solidarity surcharge, and trade
tax (a local tax imposed at 3.5%, multiplied by
a variable factor which usually brings in the total
liability in this area at between 7% and 17.5%),
resulting in an effective CIT rate of 30-33%.
Social security payments of between
19-19.5% are withheld from the wages of employees.
Most types of self-employed people can opt into
the state system; some types (artists, publushers,
journalists) must join the Artists' Social Fund
(Künstlersozialkasse).
Capital
Gains Tax
Property
or Wealth Tax
Stamp
Duty
Real estate sales subject to capital
gains tax if the property has been held for less
than 10 years. Other asset sales taxable at normal
(corporate and individual) rates if the asset has
been held for less than a year. Special rules for
shareholders holding less than 1% of a corporation,
either directly or indirectly.
Real property transfer tax imposed
by the municipal authorities at percentage of property
value, multiplied by variable local factor.
N/A
Other
Taxes
A variable rate (depending on relationship
between benefactor and beneficiary) of inheritance
tax is imposed; rates vary between 7% and 50%.
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.
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
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...
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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