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GERMANY

Useful Information

General:

         Currency: Euro (€)

         Capital City: Berlin

         Language: German

         Time zone: GMT+ 1Hr

         Electricity: 220V / 50Hz

         Fiscal year: 1st Jan - 31st Dec

         Telephone code: +49

         Internet code: .de

         Lowest point: Neuendorf bei Wilster (3.54m)

         Highest point: Zugspitze (2963m)

         Approx. area: 137,845 square miles

Labour Leasing / AÜG licence

The German law on labour leasing (Arbeitnehmerüberlassungsgesetz, AÜG) regulates the business of a company transferring its’ employees to work temporarily with another company in Germany. Our umbrella Company holds an AÜG license.

Berufsgenossenschaft

We pay an annual subscription to a German Insurance company for the coverage of our Employees during their assignments. This is the Accident and Prevention Insurance coverage. 

Tax

Residents of Germany pay tax on their worldwide income. Non-residents pay tax only on German sourced income. Tax treaties with other countries ensure that the same income will not be taxed twice in relation to those other countries.

The rate of tax increases progressively to 45%. In addition, a 'solidarity surcharge' of 5.5% of that tax is applied to cover the costs of integrating the states of the former East Germany.

If a taxpayer is a member of a church then they are entitled to impose a tax. Church tax would be assessed on income tax liability at a rate of 8% or 9%.

Deductions

Travel may be tax deductible in some cases along with other business expenses. There are a number of allowances available to resident taxpayers.

Contributions to mandatory state pension schemes, unemployment insurance, health and nursing care insurance are tax deductible up to certain limits.

Social Security

As an employee of our Umbrella Company you will be personally responsible for the coverage of both Employers and Employees Social Security. Each Social Security contribution is broken down into four parts:

  • Health Care - Employers (7.3%) and Employees (8.2%)
  • Nursing Care - Employers (0.975%) and Employees (0.975%)
  • Pension Insurance - Employers (9.8%) and Employees (9.8%)
  • Unemployment Insurance - Employers (1.5%) and Employees (1.5%)

 

In addition to the above a Health Insurance Assessment and an Insolvency Assessment will be payable dependent on your Health Insurance provider. On average, this is 1.7%.

Healthcare

It is a legal requirement to ensure that all Employees working in Germany have health insurance cover. Liberty Bishop work with multiple health providers in Germany and pay contributions across to them on a monthly basis.

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