Germany

Germany, with over 80 million inhabitants, it is the most populous member state in the EU and is, after the United States, the most popular migration destination for European residents. The citizens enjoy a very high standard of living, featuring comprehensive social security that includes the world’s oldest universal health care system and a high level of education.

Germany is recognised as one of the most attractive business locations in the world, has the largest economy in Europe, and is a historic leader in many cultural, theoretical and technical fields. With its central position in Europe, Germany is the transport and logistics hub for the continent. This fact is reflected in one of the world’s largest and most sophisticated transportation systems.

As global leader in several industrial and technological sectors, Germany has a highly skilled labour force, a low level of corruption, with a large capital stock, and a high level of innovation. Germany leads export and import around the world in industries like the auto industry, engineering, electronic, communication, chemicals and pharmaceuticals, and much more.

The German lifestyle is good, and the maximum income tax rate of the progressive tax system ranks Germany as one of the ten highest in the world. Countries with similar tax brackets include Portugal, Belgium and Austria, and the Nordic countries. People can achieve some additional tax advantages when there are married.

CXC Global’s long established company and local expertise and knowledge of German labour and tax legislation, allows us to work closely with our clients, assist with Local Tax and Social Security Registration, VAT Registration, including a preparation of a personal income tax return at the end of the tax year.

Contracting in Germany is complex. The taxation system in Germany is multi layered and is not contractor friendly. Germany is recognised for being a country with some of the highest living standards and taxes in the world. They has entered into Double Taxation Treaties with many countries and do not encourage contracting. For foreign national contract workers, contracting in Germany, it would be wise to consult with CXC Global on the best way to structure, and how best to balance taxation.

  • With our extensive experience and expertise in contractor management, and assisting organisations with their contingent workforce, CXC Global has the resources and solutions to manage the administration process associated with contracting in Germany, facilitating accounting services to run payroll and administration, local tax calculations for Germany, social security registration, tax balancing and preparation of personal income tax return at the end of the tax year

In-country services include

  • Access to Local Accountant
  • Tax Registration
  • VAT registration
  • Preparation of personal income tax return at the end of the tax year
  • Payroll services and billing services