PFRDA

Live in Germany - Work In the UK?

HI! I'm a UK North Sea Oil worker currently living in England - UK/EU citizen. For sometime I have thought of moving to live in Germany - and at some point hopefully taking up German citizenship. I will continue to work on the UK North Sea Oil Rigs and commute to my new home in Germany during my leave cycle. So my employer will remain UK based but I will be a resident of Germany. Can anybody tell in what way this will effect my tax, national insurance, pension, medical insurance situation? I am particularly unsure about the german health and pension system. My work rota means that I would be spending less than 6 months a year in the UK - i.e. when on the rig. I believe this has an effect on my tax-paying status in the UK.

Public Comments

1. Try getting in touch with the most convenient German consulate or embassy who will surely be able to give you the full facts regarding residence and obtaining citizenship in that country. I do think there are EU regulations relating to dual tax paying regulations in cases such as this but they may have been dumped by now. Good luck!
2. You need to consult a accountant, actually a firm. not a one man band who deals with local companies... but one who deals normally with EU and expat tax. there will be many medium sized and the odd smaller company, who will be able to deal with tax planning for expats.. and offshore workers. they will give you a free consulancy/interview for free.. for you and them, to see if there is any work to be done. in principle, you - always pay tax in the country your recieve it in (irrespective of living there) - you are tax liable on worldwide income in countries you spend more 90 days in (on average), though for some countries there is a 183 day initial threshold.. before your first become liable.. though by no means always. - you used to be able to get paid into an offshore bank account... and so long as the money did not come into the country where you were liable for tax (though curiously you could have an ATM card !) you were OK. BUT.. all of the EU (incl IoM and I suspect the channels islands) banks have signed up to the anti avoidance rules. You either agree to share you info with all governments of places you reside or be taxed on the assumption of basic tax liability. In fact, there was a recent commentry, that many banks are closing (if not already closed) their offshore accounts, because they no longer serve a purpose for many who used to use them (for avoidance?). Basically, you would need to live in 4 countries for less than 90 days to avoid tax....plus a holiday away from all 4. does your rig count as part of a country ? (seriously.. in whose waters is it ?).. as your reside there already. The UK, you have to average less than 90 days in 4 years to not be liable on worldwide income, spend more that 183 days in any one tax year... and you break the 4 years, become resident and would have to start the counters again. You also have to formally declare you have left, and intend to leave for at least 4 years... in advance. You could look at living Dubai.. no income tax ! (and I suspect no financial sharing at present), or maybe signapore.. low tax, or Thaliand (a little unstable at present).. There are possibilities.. but not in one country in Europe. hence.. professional advice.