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Social security and taxes when posting from the UK to Germany
Your guide to legally compliant employee secondments after Brexit
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Post-Brexit: What impact the trade and cooperation agreement has on social security.
How to protect your employees' pension entitlements during cross-border assignments.
Why the A1 certificate remains the central document for health insurance.
Under what conditions does the 183-day rule prevent tax liability in Germany?
1. What social security agreements exist between the UK and Germany?
2. Pension insurance for postings from UK to Germany
3. Health and long-term care insurance for postings between the UK and Germany
4. Taxes on employee secondments from the UK to Germany
5. FAQ Posting from UK to Germany
6. Conclusion: UK Posting to Germany
1. What social security agreements exist between the UK and Germany?
Since the United Kingdom 's formal withdrawal from the European Union, the legal framework for global mobility has fundamentally changed. The decisive factor for assessing secondments is now the Trade and Cooperation Agreement (TCA) concluded between the EU and the United Kingdom , which has been permanently in force since May 2021. This agreement ensures that workers temporarily crossing borders are not subject to double social security contributions, but are generally governed by the legislation of one country.
In our legal practice, we often observe that companies mistakenly assume that coordination will cease after Brexit. In fact, the Protocol on the Coordination of Social Security within the Trans-Community Accord (TCA) stipulates that for secondments of up to 24 months, the law of the sending state can continue to apply. One prerequisite for this is that the employee is not being seconded to replace another person. In Germany, Section 4 of the German Social Code, Book IV (SGB IV) forms the national basis for this so-called "posting," while the bilateral TCA Protocol, as the overriding international law, governs the details of jurisdiction.
2. Pension insurance for postings from UK to Germany
In the area of pension insurance, the cooperation agreement fortunately ensures a high degree of continuity, which safeguards the legitimate expectations of insured individuals. When advising clients on assignments from the UK to Germany, avoiding gaps in their insurance coverage is paramount. The agreement guarantees that periods of insurance completed in the other country can be credited towards fulfilling the waiting periods (minimum insurance periods) . This is particularly relevant for later receiving a retirement pension, as the periods of insurance in Germany and the UK are added together to establish entitlement.
In practice, this means that if the secondment is carried out correctly, contributions can continue to flow into the British National Insurance scheme while the employee is physically working in Germany. We carefully examine whether the requirements of the social security protocol are met to ensure the employee does not experience any disadvantages in their pension calculation later on. If the secondment exceeds 24 months, we often need to review individual exception agreements to prevent an unintended change in the system, which would unnecessarily complicate the pension history.
3. Health and long-term care insurance for postings between the UK and Germany
A key aspect of compliance is proof of health and long-term care insurance coverage. Despite Brexit, the A1 certificate remains an essential document for every employee coming to Germany from the United Kingdom . This certificate serves as proof to German authorities and social security institutions that the employee remains covered by the British system. Without this document, there is a risk that German customs will demand immediate registration for German social security in accordance with Section 28a of the German Social Code, Book IV (SGB IV) , during audits, which can lead to substantial back payments.
Should you have any further questions regarding health insurance for British employees, our lawyers will be happy to assist you.
4. Taxes on employee secondments from the UK to Germany
While social security is coordinated through the TCA, tax treatment is governed by the double taxation agreement (DTA) between Germany and the United Kingdom . Generally, the right to tax lies with the country where the work is physically performed – in this case, Germany. One of the most important exceptions, which we regularly review in our consultations, is the so-called 183-day rule under Article 15 of the DTA. If the employee remains in Germany for fewer than 183 days within a 12-month period, the right to tax may remain with the United Kingdom, provided further conditions are met.
These conditions are strict, however: the salary must not be paid by a German employer, nor may it be borne by a German branch of the British company. We regularly warn our clients against underestimating the complexity of this regulation, as even the economic assumption of salary costs by a related company in Germany can trigger tax liability from the very first day. Therefore, meticulous documentation of the days of stay and the cost allocation is essential for legally compliant structuring of global mobility arrangements , in order to minimize liability risks for the employer.
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5. FAQ Posting from UK to Germany
Is a visa required for postings from the UK?
Yes, since Brexit, British citizens generally need a residence permit to work in Germany. However, there are exceptions for short-term services or business trips, which we need to assess on a case-by-case basis.
How long can a posting last under the social security agreement?
The standard maximum duration for maintaining British social security coverage is 24 months. Extensions are only possible in justified exceptional cases via a special agreement.
Does the employer in Germany have to pay income tax?
This depends on whether the British company is considered an economic employer in Germany or maintains a permanent establishment there. If Germany has the right to tax, a payroll tax deduction procedure must be set up.
6. Conclusion: UK Posting to Germany
The secondment of employees from the United Kingdom to Germany remains feasible even after Brexit, but requires meticulous legal preparation. The trade and cooperation agreement ensures the continued coordination of social security systems, providing stability, particularly for pensions and health insurance . Nevertheless, the tax implications of the double taxation agreement and the new visa requirements should not be underestimated. At VISAGUARD law firm, we will guide you through this process to ensure your global mobility strategy is implemented in a legally compliant and efficient manner.