Tax implications working for a foreign company in Germany

Tut his topic has been covered before. I suggest you have search in the forum.

Yeah, the Finanzamt will just say that you have to comply and you will have to get advice from a Steuerberater (certified tax advisor). I don’t know the details of such a specific situation but it’s clear that if working in Germany then you will have to declare and pay taxes.

My question would be what are you planning to do afterwards?  If you are a citizen of Australia then you cannot just move to Germany and work. You would need a work visa issued for those first months and afterwards permission to freelance if that is your intention. I doubt you can just stay and look for a job without a job seekers visa. I’m not sure if one would get a limited work visa and then be able to simply stay and find a job and start working. One can look as a tourist but then need to return home to apply for a work visa.

For such permission to freelance they will want to see a good business plan with probability of success. This depends on ones skills and experience, knowledge of the local markets, contacts and language skills plus adequate capital to start up.

You need to consult a German tax adviser experienced in such international matters.
I personally doubt that the requirements and buerocracy involved are woth it for just three months. Better don't work while in Germany!

Thank you all for your replies, it's greatly appreciated

SimCityAT - I did find some threads that touched on this topic but I didn't find much about how to go about getting official information to present to my company beforehand. Apologies if I have doubled up unnecessarily.

Tom & Beppi - it definitely sounds like a tax consultant is the best way. I will look into this and report back with how it goes. If it is too difficult maybe the best option is to avoid it and start looking for work immediately on arrival.

As for my plans, they are still theoretical on the details. I have engaged relocation company Nomaden Berlin for their assistance and advice on how to proceed in my circumstances but they were not able to provide tax information (which is understandable). I am hoping I can travel over and work for three months remotely (as a tourist), then obtain a job seeker visa to look for work, then a working visa once I find something. I wouldn't be looking for freelance work and I realise the opportunities are limited while I am not fluent in German (currently taking lessons). I would be looking for office administration work.

My girlfriend is German and lives outside of Berlin and if we run into serious problems with a visa there is an option to get married, though would rather let that take it's natural course ;-)

Your advice so far has been invaluable, happy for any further comments.

Thanks!

You should look at the below link and I have quoted a passage from it. It says that there are exceptions to the normal work visa rules for some select countries including Australia. Thus I have to correct what I posted above. It seems you CAN work without a work visa and would not need to get a job seekers visa, something that has a lot of qualifications and is only issued before arriving in Germany anyway.

There is a lot of talk on the internet about being a digital nomad; the problem is that it often doesn’t differentiate between what one might be able to get away with and what is actually legal. It might be legal for you to work for a foreign based company while in German but you will need to report and be taxed on it – from a legal standpoint. 

Even if one doesn’t need to get a work visa, being granted residency will depend on their work situation. If you don’t find gainful employment or manage a successful free-lance business then one cannot expect to keep getting extensions on what will be limited residency permits.  The thing is that the government doesn’t want people living here and then needing social assistance. Even people from other EU countries, while not needing a work visa, have to have worked for at least 2 years in Germany before being allowed to get any social help.


"The following do not need a visa to work in Germany:

    Nationals of one of the member states of the European Union, the European Economic Area and the European Free Trade Association, do not need any German visa in order to be able to work in Germany.
    Applicants who are nationals of Australia, Canada, Israel, Japan, New Zealand, the United States of America or South Korea can apply for a residence permit upon their arrival in Germany, with no need to initiate such procedures back in their home country. The above mentioned only need a passport in order to be able to enter the country."


https://visaguide.world/europe/germany- … mployment/

Tom is wrong: Citizens of Australia, Canada, Israel, Japan, New Zealand, the United States of America or South Korea also CANNOT  work without work permit. They can just apply for a residence permit (and a work permit) after arrival in Germany - all others must get it before coming here!

beppi wrote:

Tom is wrong: Citizens of Australia, Canada, Israel, Japan, New Zealand, the United States of America or South Korea also CANNOT  work without work permit. They can just apply for a residence permit (and a work permit) after arrival in Germany - all others must get it before coming here!

I think there might be some confusion about work visa and work permit as allowed by a residency permit. Of course all of these citizens like everyone else, need to get a residency permit that allows working. But a work visa is an extra document needed beforehand for most non EU-citizens. As far as I understand, there is a special status for these select countries that they don’t need to find a job first and then get a work permit before coming, or alternatively get a JSV. They can come, find a job and then apply for residency that includes permission to work.

I myself never got a work visa. I came as an American and then married and got a residency permit allowing me to work but never obtained such a visa. But that was over 20 years ago and immigration laws have changed over the years as well.

Hey,


there is a webpage: steuerberater.com, giving you contact-details of tax consultants. On the page you can also read basic information about the German tax-system.

Hi Tom,

I can't thank you enough for taking the time to look into this on my behalf. It all seems quite positive in favour of what I'm trying to do.

I have inquired with a tax advisor to see if they can provide advice for my specific situation and will do the same with Nomaden Berlin. Once I have a better understanding I will post back for anyone else who might be in a similar situation.

Hi Beppi,

This is also my understanding. I will need a visa to work but with my circumstances I'm not sure the best way. I hope Nomaden Berlin can clear this up for me, or put me in touch with agencies who can.

Hi Katharina,

Thanks so much for this. I will check back for the link as it's still under review. I've read some basic guides on the German tax system but I definitely want some professional guidance to avoid running into any problems as I am not expert on these matters.

Thank you all again, this community is truly fantastic!

AidanS wrote:

Thank you all for your replies, it's greatly appreciated


My girlfriend is German and lives outside of Berlin and if we run into serious problems with a visa there is an option to get married, though would rather let that take it's natural course ;-)

Just to the subject of getting married as a solution. Yes, this is often a solid strategy but one should be aware that a family reunification visa is not granted automatically, even if the partner is German. They will look to see it is a legitimate marriage and not just for paper. And then still has to meet qualifications including passing an A1 German exam.