Business activities also in the territory of Germany
With a trade licence from your home country, you can also carry out business activities in the territory of Germany, as long as they are registered as free activities in Germany. If the activity is a regulated activity under German law, you must report the activity to the German Chamber of Crafts competent according to the first place of work in Germany before the work is carried out.
The chamber will examine whether your previous experience and education qualify you to carry out cross-border work and, if so, issue you with a certificate valid for one year, during which time you can carry out the activity in Germany as a foreign entrepreneur.
Another important consideration when carrying out activities with a foreign trade licence is the maximum permitted duration of the work in Germany from an income tax perspective. Here, you can work for one customer at one location, or several locations up to 50 km apart, for a maximum of 12 months to avoid having to tax your income in Germany.
Frequently asked questions
How long can I work in Germany without incurring tax liability?
You can only work for one customer at one location for a maximum of 12 months to avoid establishing a permanent establishment in Germany.
Is it possible to work in Germany for more than one year in the same place without establishing a permanent establishment?
Yes, it is possible if you would change the contractor’s person to another company of yours.