Employment of non-domiciled foreign workers in Germany – RBO is at your service
Foreign companies operating in Germany may wish to employ personnel from their home country, either for long or short periods of time. In our globalized economy, German companies may also see the need for bringing in foreign skilled professionals to Germany, for specified periods of time. Foreign employees often remain domiciled abroad, either for tax reasons or simply because their assignment in Germany is limited in time. Basically all foreign citizens who wish to work in Germany have to obtain a permit from the Federal Employment Agency. The only exception are citizens of EU Member States, Switzerland, Iceland, Norway and Liechtenstein. In all other cases, a work permit is required, regardless of the duration of assignment or place of domicile of the foreign citizen. Filing an application can be challenging, especially if someone does not speak the German bureaucratic language. RBO experts are here to help you in a professional manner. Our legal team, expert in German immigration law, will take care of all formalities with the relevant authorities on your behalf, so you do not have to fill in long forms when employing non-domiciled foreign workers.
Employment of non-domiciled foreign workers in Germany – when does full tax liability apply?
Besides obtaining mandatory work permits, you must also be aware of the tax obligations when employing non-domiciled foreign workers in Germany. In principle, any income generated in Germany is taxable in Germany. It does not matter whether the taxpayer remains domiciled abroad. However, tax exemption applies when the foreign company continues to pay wages to the employee at more than one location, and the assignment in Germany does not last longer than 183 days. In this case, taxes are paid in the employee’s home country. In addition, many countries have established bilateral agreements to prevent double taxation. Should your employees pay taxes in Germany, RBO helps you apply for a Tax ID and Tax Number from the tax authorities.
Employment of non-domiciled foreign workers in Germany – full tax liability in Germany while domicile abroad
Whether the employment of non-domiciled foreign workers has to be reported to the German Social Security Administration, depends on the employee’s status and the content of the employment contract. For example, in case of marginal employment (geringfügigen Beschäftigung), there is no health insurance payment obligation, and the same applies for employee posting. For the average citizen, it can be a real challenge to know and understand all related laws and regulations. RBO offers professional advice, and takes care of the registration of your foreign employees if they have to pay mandatory social security contributions. We also take care of forwarding health, pension and unemployment insurance payments. If you are not familiar with and up-to-date in complex German regulations, it is one more reason to rely on us. 21 years of experience and thousands of satisfied customers speak for themselves.
Your key to success
Employing non-domiciled foreign workers in Germany does not have to be complicated. With an all-inclusive carefree package, we take care of all the formalities for your employees and help your company get a head start in Germany. Trust the expertise of our specialists and do not hesitate to use our services.