# German resident with UK company



## ezio.dafirenza (Mar 15, 2021)

Hi all,
I am an EU citizen living in the UK, and in the upcoming months, I will be moving to Germany.

Currently, I own and work for my LTD company that is domiciled in the UK.

What would be the best/most optimized option to move my business to Germany?

Hope to get some constructive feedback.
Thank you.


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## Bevdeforges (Nov 16, 2007)

Either you establish a German branch or subsidiary (while continuing to operate the UK part of the business), or you simply set up a German company. Either way, the German branch or business is bound by German labor and tax laws.


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## ezio.dafirenza (Mar 15, 2021)

Thank you Bevdeforges.

So in fact, having the UK LTD company does not bring any benefit as the income would be taxed this way or another when moving it to the branch/subsidiary?


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## 255 (Sep 8, 2018)

ezio.dafirenza -- Your question: "So in fact, having the UK LTD company does not bring any benefit as the income would be taxed this way or another when moving it to the branch/subsidiary?" It depends. As Bev. indicated, your salary, while living in Germany, will be subject to German tax and social charges, whether a branch of your new company or a totally new German company, there is still the corporate tax variable. The corporate tax for a Limited Company in the UK is currently 19% while the corporate tax in Germany typically ranges between 30-33% (the German federal tax is currently 15%, but the municipal trade tax is an additional 14-17%, driving the overall rate up.)

If you are taking 100% of your company's profits -- the UK Limited Company probably doesn't do you much good. If you are leaving some money in the UK LTD Co., you may be able to take advantage of the cheaper UK tax rates (caveat, if the UK company is considered "doing business" in Germany, it will be taxed at German rates for the work performed in Germany.) You may want to establish a new German Company that contracts with your UK company, for your labor, to take advantage of this scenario.

Be warned, that the EU, in general, is looking for ways to tax it's residents at their own higher rates (over the so called low tax counties.) They are also on a mission to punish the UK for BREXIT and are intent on not letting the UK establish itself as the "Singapore" of Europe! You should probably avail yourself of an hour of a good German Tax Attorney or Accountant's time, who is versed in your particular situation. Cheers, 255


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