Contracting Abroad

[gc2006]

Hi all - I'm looking at working abroad for a while. One possibility is to take a contract with an Irish company, but to be based working onsite for one of their customers in Germany for 2 years.

So basically I would:
- rent out house, get an apartment over there
- finish up paying taxes in IRL in June and start basically declare in Germany from then on (split year taxation)
- then from June I would setup as a sole trader in Germany and raise a monthly invoice to the Irish company as a contractor.
- So I would be living in Germany, as a German sole trader and therefore liable for their lower rate of tax.
- I understand the trade off is
1) I would loose my PRSI continuity, by leaving the Irish tax system
2) I would still eb liable for tax on my house rental in IRL (will be no profit. Mortgage > rent by a lot)
3) I would have additional costs in terms of operating as a sole trader, instead of an employee (accountant etc)

But just wondering in this case, do people think the law /revenue is clear on this. Like I would in essence be moving to another country to live, and am thereofre free (as any international company is) to raise an invoice to an Irish company.

That all sound above board, and possible?

Thanks
G

 

[Jim2007]

Hi There,

The easiest thing would be to find a payroll company in German to handle all the issues involved. They would officially take you on as an employee and pay you over the net amount for the contract after there fee and payroll expenses. This way would easily qualify for unemployment benefit in German at the end of the contract and of course your contributions will also count in calculating your contributory pension when the time comes.

Jim (Switerland)