Paying tax when remote working abroad

Jambonjunior

Hi,

If I move to Germany from Ireland, but remain working remotely with the same company in Ireland, do I keep all my tax affairs in Ireland?

Is it possible to pay tax in Germany instead?

Thanks!

Jim2007

Once you are resident in Germany, you will be subject to German tax laws. It is not optional.

You will need to seek proper advice on how to handle the double taxation situation on a salary paid out of Ireland. I suspect it would be far easier it you were to contact with them through a German accounting agency, but that is something to explore with a proper advisor.

redcup342

Jim2007 wrote: »

Once you are resident in Germany, you will be subject to German tax laws. It is not optional.

You will need to seek proper advice on how to handle the double taxation situation on a salary paid out of Ireland. I suspect it would be far easier it you were to contact with them through a German accounting agency, but that is something to explore with a proper advisor.

If you do register with the city hall, for tax purposes you just do a return and declare your taxable income as 0, Ireland has a Tax Treaty with Germany, you can do it yourself or get a tax advisor to do it (costs around 220 euros per return)

For Health Insurance you can just use your Irish one and then get a treaty policy with AOK (It will give you a German Insurance card linked to your Irish one)

It only becomes an issue if you work in an Office with other work colleagues, then you really become subject to German Income taxes based on your time spent working in Germany.

Its actually not that big a deal, lots of people do it, you can get by with an Irish Bank account and so on, but also you could get a Number26 account with your Irish Address and you'll have a German IBAN.

Jim2007

You see this is why I suggested you get proper tax advice.

redcup342 wrote: »

If you do register with the city hall, for tax purposes you just do a return and declare your taxable income as 0, Ireland has a Tax Treaty with Germany, you can do it yourself or get a tax advisor to do it (costs around 220 euros per return)

It does not matter if you register at city hall or not. You will be considered resident in Germany for tax purposes and subject to taxes on your world wide income. Submitting a tax return with zero income in this case is civil offence in Germany.

Ireland has a double taxation agreement with Germany which means that you will avoid being taxed twice on the same income, it does not mean that you are not subject to German tax laws.

redcup342

Jim2007 wrote: »

You see this is why I suggested you get proper tax advice.



It does not matter if you register at city hall or not. You will be considered resident in Germany for tax purposes and subject to taxes on your world wide income. Submitting a tax return with zero income in this case is civil offence in Germany.

Ireland has a double taxation agreement with Germany which means that you will avoid being taxed twice on the same income, it does not mean that you are not subject to German tax laws.

Think you misunderstand, you declare your Worldwide income but your taxable income is zero as you declared 100% of your Income tax in your working country already.

It does very much matter if you register with the City Hall, if you have foreign income you are obliged to file a return
If you have a German Income with Class 1 (Single) you are not but Class 3 (Married) you are.

Many people working via their own Ltd company in Ireland and live in Germany un-registered as Private Individuals, the Finanzamt isn't going to bust down your door to check if you are working from home, technically you should of course but they have no way of checking it, same goes for the Netherlands.

Belgium is a different story, they do actually control it, when you register with the City Hall the Police will call around at some point un-announced to check if you actually live there,

Only would really become a problem if the OP starts working in a German Office

Downside to not registering would be if you became unemployed you wouldn't be able to access the Arbeitsamt/Jobcenter or get a Car Parking Permit for example.

Signing up for services like a phone/internet contract would be pretty impossible since you won't be able to use Post Ident, but you can get by just fine.

Fysh

I second Jim2007's suggestion of the OP getting proper tax guidance from someone with whom they can discuss their particulars in as much depth as required.

I appreciate the desire to be helpful and provide a general idea, but it would be very naive of anyone to assume that what someone advises on a message board is 100% correct and applicable to their circumstances

Jim2007

redcup342 wrote: »

Many people working via their own Ltd company in Ireland and live in Germany un-registered as Private Individuals, the Finanzamt isn't going to bust down your door to check if you are working from home, technically you should of course but they have no way of checking it, same goes for the Netherlands.

That is tax evasion and I heard enough of your nonsense. Like I said OP, get proper advice.

redcup342

Jim2007 wrote: »

redcup342 wrote: »

Many people working via their own Ltd company in Ireland and live in Germany un-registered as Private Individuals, the Finanzamt isn't going to bust down your door to check if you are working from home, technically you should of course but they have no way of checking it, same goes for the Netherlands.

That is tax evasion and I heard enough of your nonsense. Like I said OP, get proper advice.

It’s not at all, you pay your tax where you work, not where you live (in the EEA) as long as you declare your tax and pay it thats completely fine.

That’s the issue for teleworkers.

OP obviously these people aren’t in the situation. Checkout some of the cross border worker sites,

http://www.grensarbeider.nl/gp/

Will have to use google translate a bit.

Unfortunately there aren’t too many Irish workers doing it in Germany, plenty of UK workers though.

Drop me a PM if you need any help with Social Security stuff.