# EU Blue Card, Working for US Company



## Spruill7716 (5 mo ago)

Greetings, I'm an airline pilot currently working in the United States and had some legal/tax questions regarding German law. Our airline (cargo) has an agreement with the German government that allows pilots to work and reside in Germany for a period of 5 years without the requirement of a German work visa or being required to pay into the German tax system. The airline refers to the job as a FDA or 'Foreign Duty Assignment'. After the 5 year period is up, pilots are required to maintain a US residence for at least 1 year until they are allowed to rebid for an additional 5 year period in Germany. Most pilots who want to remain in Germany during that year will do so and will just commute to work (in the United States) during that transition year. I'm wanting to do the same however, I would like to have a pathway towards citizenship starting from day 1. I've determined that given my profession and qualifications I would qualify for a EU Blue Card. The only concern I have is whether or not the job offer required in my application needs to be an offer '*in Germany*' or '*an offer from a German company*'. Since the airline I'm working for is US based, would the contract for the first 5 year period be enough to satisfy this requirement on my application? If not, what are some better visa options for me out there. I speak German at a B2 level and plan to take a Goethe-Institut language exam at some point after arriving. This should reduce the time required to get a settlement permit down to 21 months, which will be enough to acquire during the first contract. The location of the job is in Köln. 

I would still be getting paid US Dollars to a US bank from a US company while living in Germany, visa and tax free. This also raises tax questions in regards to salary. As a US citizen, I would still have to pay my federal income tax every year along with the taxes pulled from the US airline (Medicare, Social Security, etc.). Outside of the public health insurance required for the EU Blue Card, would I have to pay German taxes if I'm not being employed by a German company? I'd imagine I would have to pay something at some point, either once I get a EU Blue Card or the settlement permit.


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## *Sunshine* (Mar 13, 2016)

You can't have your cake and eat it too. A contract with a German employer along with all the associated taxes and social security contributions is necessary for a Blue Card.


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## Spruill7716 (5 mo ago)

*Sunshine* said:


> A contract with a German employer along with all the associated taxes and social security contributions is necessary for a Blue Card.


The taxes are less of a concern. I'm comfortable paying those as I figured that was the case. So working for a US airline based in Germany wouldn't satisfy the Blue Card requirement? That seems a bit strange considering I'm working, residing, and paying taxes in Germany but don't receive any of the benefits towards citizenship.


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## *Sunshine* (Mar 13, 2016)

It depends on your contract. If you have an American contract with a FDA designed to circumvent local taxes and social security, you are not eligible for a Blue Card. 

If you want a Blue Card, you'd need to be hired by the German subsidiary under German law with all the associated taxes and social security contributions for you and your employer. Germany has very high payroll taxes, which will make it unlikely that your employer would be willing to hire you at your current salary.

Talk with your employer.


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## *Sunshine* (Mar 13, 2016)

BTW, how did you go from this:



Spruill7716 said:


> I would still be getting paid US Dollars to a US bank from a US company while living in Germany, visa and tax free.


To this?



Spruill7716 said:


> So working for a US airline based in Germany wouldn't satisfy the Blue Card requirement? That seems a bit strange considering I'm working, residing, and paying taxes in Germany but don't receive any of the benefits towards citizenship.


You are describing two very different sets of circumstances. 

You should probably decide what you want before you contact your employer.


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## Bevdeforges (Nov 16, 2007)

Those agreements were carved out specifically to allow the foreign company to avoid having to transfer their "temporary" employee to the local payroll (with all the higher payroll costs involved). Your sole option here is going to be to transfer to whatever German branch or subsidiary your employer may have (including getting paid in euros and having all the appropriate payroll deductions, etc.). 

Don't forget, too, that in order to take German citizenship, you will have to renounce your US citizenship - currently the cost of that is at $2350 and could rise again in the 10 years it would take for you to meet the residency requirement for naturalization.


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## Harry Moles (11 mo ago)

*Sunshine* said:


> > I'm working, residing, and paying taxes in Germany
> 
> 
> You are describing two very different sets of circumstances.


Mehrwertsteuer!


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## Spruill7716 (5 mo ago)

*Sunshine* said:


> BTW, how did you go from this:
> 
> 
> 
> To this?


The top one is the given situation that I was expecting, while the bottom is a hypothetical situation in which I'm paying German taxes and not being eligible for the Blue Card.


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## Spruill7716 (5 mo ago)

Bevdeforges said:


> Those agreements were carved out specifically to allow the foreign company to avoid having to transfer their "temporary" employee to the local payroll (with all the higher payroll costs involved). Your sole option here is going to be to transfer to whatever German branch or subsidiary your employer may have (including getting paid in euros and having all the appropriate payroll deductions, etc.).
> 
> Don't forget, too, that in order to take German citizenship, you will have to renounce your US citizenship - currently the cost of that is at $2350 and could rise again in the 10 years it would take for you to meet the residency requirement for naturalization.


Unfortunately, the airline doesn't have a German subsidiary for pilots that would pay a local payroll. Looks like I'm going to have to convert my FAA licenses to EAA and seek employment with a German airline if I want to maintain residence after my 5 year contract is over. That endeavor is $20000 minimum to complete, which I was trying hard to avoid. My ultimate goal is citizenship, so if I'm forced to renounce my US one in exchange for a German one, I'm prepared to do that. The coalition government is looking to allow dual citizenship in the future, so hopefully I'll have a better outlook on that issue once I qualify down the road. Fingers crossed.


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## *Sunshine* (Mar 13, 2016)

Spruill7716 said:


> The top one is the given situation that I was expecting, while the bottom is a hypothetical situation in which I'm paying German taxes and not being eligible for the Blue Card.


How would you get from the given situation to the hypothetical? 

As a pilot you must be aware of various international agreements that govern travel. You are being offered a specific FDA that makes it possible for you to be stationed in Germany for 5 years while continuing to be employed under US regulations without having to pay German taxes. You can't simply opt to pay German taxes. You would need a different employment contract.

I can't imagine a situation where your American employer would be able able to employ you with your American credentials while you are official resident in Germany and paying taxes here. You should, however, clarify this point with your employer.

Before converting your credentials I would highly recommend that you look at the German job market to determine whether you'd even want to work for a German airline.


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