# Umbrella company while on student visa--is this OK?



## enc2345 (Dec 11, 2016)

Hi everyone!

I’m an American citizen studying in Germany under a student visa. I’ve just been contacted by a former freelance client of mine (based in America) who’s interested in having me do another assignment for them. Of course, I know student visas prohibit self-employment. But in looking up the law just to triple-check, I came across the idea of an umbrella company (sometimes called a payroll company or management company in various countries). Apparently, these companies essentially hire the freelancer as their own employee and act as an intermediary between the freelancer and the client. They also withhold taxes just as a regular employer would.

So, does anyone know whether this arrangement would make me a legal employee in the eyes of the German authorities? Or would I still officially be a contractor/freelancer/self-employed despite working through one of these companies? 

I’m happy to decline the client if necessary—better safe than sorry, and I certainly don’t want to break any laws. But I thought it would be best to explore all avenues before I give them an answer either way.


Thanks so much in advance!


----------



## Nononymous (Jul 12, 2011)

If all the following conditions apply:

1. Your former freelance client is in the US and the work is remote.
2. You will be paid US dollars into a US bank account.
3. The hours are not sufficient to interfere with your studies.

Then I would just take the job and keep quiet. Ain't nobody gonna know.

If the amount of money is below (or not too dramatically above) the threshold for German income tax then you needn't worry about that either.


----------

