EU, abroad & reverse charge · 5.11
Managing Director Abroad: What Does This Mean for the GmbH?
Short answer
If you manage your GmbH permanently from abroad, the place of effective management can shift. In that case, the GmbH may also become subject to tax in the other country. If you relocate abroad yourself, tax on your company shares may also be triggered. This is a topic for individual advice.
Key points
- Place of management: It is located where the key decisions are actually made. If you steer the GmbH permanently from abroad, you may shift it there.
- Consequence for the GmbH: It may be deemed taxable in two countries. Double taxation agreements often resolve this, but not always in your favour.
- Consequence for your salary: If you work abroad, your salary may be fully or partially taxable there.
- Relocation abroad: If you give up your residence in Germany and hold at least 1% in a corporation, the increase in value of your shares may be taxed as if you were selling them (Wegzugsbesteuerung / exit taxation).
- Short stays, such as a holiday with occasional work, are usually non-critical. For longer periods, seek professional advice in advance.
Legal basis
Continue
- Next topic: Balance Sheet and P&L: What Does My GmbH Need to Prepare?
- Related: Which tax office is responsible for my GmbH?
With Pluto
← Back to topicPluto handles your GmbH's bookkeeping independently of your location. The question of where the company is tax liable is best clarified individually.
Try it for free