My wife (German/US dual citizen) and I (US citizen) are planning a move to Germany to be near her family. We are unclear for how long we would move to Germany, since it depends to some degree on my adjustment to the language and weather, as well as the continuing health of my own parents back in the US. Initally I see it as at least a two or three year venture.
I'm looking for some general advice on taxes and employment for me. We certainly will eventually consult a tax lawyer in Germany, but before committing to any particular decision, I would like to get a general idea regarding the tax implications for me, if I continue working for my US employer while living in Germany. I work in IT and can do much of my work across the internet or phone. I would expect to be working in the US for 20% or less of my working days.
My US employer is a relatively small company, and I cannot see them ever agreeing to pay me in Euros or working with the German tax authorities. If they continue to pay me in US dollars, what would be the best way to structure a contract agreement with regard to the items below. And what would be my obligations in Germany?
Income Tax in Germany/US
US Social Security and Medicare Taxes vs. German Rentenvesicherung
Most likely my wife will be able to get a full-time job employed in Germany by a German firm, so you can add that to your assumptions. She was employed in Germany for about five years before coming to the US (and marrying me).
Thank you in advance for your advice!