Telecommuting for a U.S. company from Germany

I am a US citizen and have recently discussed with my employer the opportunity to continue working my US job remotely while living in Berlin. I have several questions relating to the processes for permits and the eventual taxation of my income:

- From my (very brief) communication with the German consulate in Houston, it appears that I would not need a work visa, since the work I am doing is for a US company, and am not taking away a job from an EU resident. Is anyone in a similar situation?
- Rather than a residence permit with work visa attachment, I would just acquire a residence-only permit. I have had much difficulty finding a list of required documents etc but I imagine it is something such as:
- passport w/ photos
- proof of insurance
- proof of financial solvency (bank statements)
- letter from employer indicating my current salary and that I am employed indefinitely
- It seems I need to get an apartment before I can receive a residence permit, but it also sounds like many places will not let you sign a lease without a residence permit. How does one resolve this situation?
- I was hoping to being the residence applicaiton process this winter, in preparation for a move in the spring. Would it be more prudent (or is it even possible) to apply at a US Consulate for a residence permit, or should I enter as a tourist and then convert my visa. From what I understand, the tourist visa requires a return ticket, which I would not have if I am planning an indefinite stay...
- Has anyone worked a similar situation (residing in germany while working for a US company)? I am trying to sort through the taxation implications. I seem to undertstnd that I would be exempt from US taxation up to 85000 dollars, and would then file my taxes in Germany. But I also have read information that I could do the opposite: not claim in Germany, but pay US taxes. Barring that, anyone know a good accountant that could consult? :)

Thanks to anyone who might be able to help!

- Charles

You really need to consult with a German Steuerberator who is a US CPA and intimately familiar with similar expat situations and the double taxation agreement between the US and Germany. I think at least one has advertised here on TT in the past.

good luck!
please post what you find. i'm sure there are others who might do what you are doing (or trying to convince their employers to let them so knowint how the visa/residence permit part works would be great!).

Taxation might not be the only issue - items like social insurance, pension contributions & of course the required health insurance will raise their heads...

Chuck I think you're well on your way. You don't need the residence permit to rent an apartment. Try to get the residency permit before you come though, as this will be the key document for your stay. Contact the consulate.

Health insurance won't be a problem either, though deciding whether you want to go with a public (gesetzlich -- though the way you'll be doing it is called freiwillig) or private (privat) is another issue. Pensions and the like are also moot because you'll likely be treated as self-employed by the German government.

If you live here more than six months, you have to pay taxes here -- and you're right, you don't get taxed then in the U.S. until you cross that magic barrier (odd how they can double tax ex-pats). But taxes can be painful here.

In summary: I hope this woman is worth it.

I live in Germany (between Cologne and Trier) and telecommute to the US. Here are a few issues:

- Benefits were too complicated for my US company, so I officially became a consultant when I moved
- Taxes are more complicated than it seems. That $85,000 line is not firm and you are not fully exempt. You get a credit for your German taxes paid and some forms of US taxation are not covered by it. You may still have to pay self-employment taxes (if you go that route) and you will still have to pay taxes to your previous state of residence. You really should consult a knowledgeable tax advisor on this particular issue.
- Arrange your Internet connectivity as early as possible as come ISPs are very slow, despite their claims to the contrary (it took six weeks to get my DSL).

Apart from the logistics, though... I am glad I did it.

See also the following related topic, there might be other snippets of good advice there: Living in Germany and working remotely in the U.S.

Thanks much for the replies. Going to get things finalized with my boss, then consult a CPA while I apply for a residence permit. From what I understand they take 1-3 months, and are valid for 90 days, so if I'm planning a march departure, I guess late november would be a good time to start...

Residency permits are good for two years. You're confusing a tourist visa (which you get automatically by showing up here) with the residency permit (aufenthaltserlaubnis).

When I say valid, I mean they can "begin" within that 90 days... no? i.e. if I get it issued in january i have until the end of march to actually get over there...