Hi,
I've been living in Germany for 8 months having moved from the UK and now have official residency. I have a wife who is in full time Employment (she is German) and two kids under seven.
My previous employer in the UK is willing (and has)given me work ( I'm an Internet Designer and Programmer) but not on an employed basis. At the moment any money earnt which is generally less than £200 per month is paid into a UK bank account.
As this looks like it's going to be a long term arrangement I want to get the tax situation sorted here in Germany.
So I have three questions.
1. Do I have to set up as self employed here in Germany and what's involved?
2. How do I stand as far as tax is concerned keeping in mind that my wife is in full time employment and on a fairly high income?
3. My wifes employer provides medical insurance for the whole familly. Does beeing self employed have an effect on this cover for myself?
Thanks for any help that may be offered.
Andy
Freelancing and Tax Ex UK
Tax matters are VERY complicated in Germany and doing things wrongly can have serious legal consequences. You are well advised consulting a professional tax adviser (Steuerberater), not just a forum like this.
To my understanding, you are living and working in Germany, so your income is taxable here.
You probably have to register a business to do this properly, but your tax adviser will tell you the exact details. Since your wife earns well, your tax rate will be very high (40-50%).
If you earn above a certain threshold (EUR375 if memory serves me right, NOT the infamous EUR400 job, which wouldn't apply to you!), you cannot be health-insured through your wife any more and have to pay yourself, which is probably not attractive (minimum fee for freelancer is nearly EUR150/month).
Thanks Beppi,
Very useful advise. My wife has to do her tax return soon so we will be talking to a tax advisor.
I'll post the results here which may help others in the future.
Andy
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