My daughter is the 3rd US nanny for a family living off-base. None of the other nannies held visas and stayed longer than the 90 days (usually 10 months) returning to the US once during that time. When my daughter returned after Thanksgiving, they stopped her at the Frankfurt airport and grilled her extensively. She is now worried that she needs to get a work permit. It doesn't make sense to me that she would have to pay German taxes herself and the US Family she works for when both are already paying US Taxes? Does anyone have any experience with this? I don't want her fined and losing the little money she is earning, or worse, have problems leaving the Country in June when she's set to come home. Does anyone have any experience with this? Thanks!
Posted by
Danville, VT
12040 posts
It's really quite easy. If she's receiving monetary compensation for a job she performs in Germany without a working permit (or without falling under the Status of Forces Agreement for US government workers), it violates German law.
Posted by
Delft, Netherlands
242 posts
"It doesn't make sense to me that she would have to pay German taxes herself and the US Family she works for when both are already paying US Taxes?"
Unfortunately you didn't write the tax laws and it is possible you don't fully understand them. When we first moved abroad we were paying taxes in the US and in the Netherlands. After discussions with our employer and with the help of expats groups we found out if we were planning on staying less than two years we could get a tax waiver for the Netherlands and only pay taxes in US. I realize you are talking about Germany, but have you fully looked into the tax laws for foreign citizens and temporary residents?
Posted by
OH, OH, USA
1158 posts
"It doesn't make sense to me that she would have to pay German taxes herself and the US Family she works for when both are already paying US Taxes?"
Tami,
If you meant by above that the family pays taxes for themselves, then your daughter's taxes don't have anything to do with that.
US citizens have to pay taxes on incomes over $600 regardless the place on Earth they earn income on.
US has double taxation treaties with many countries and I am sure Germany is included in those. It means that an US citizen working overseas will pay taxes only once either to IRS or to the other goverment, but not to both.
Posted by
Calgary
2297 posts
The US nanny in Germany faces two separate problems and needs to get answers to two separate questions:
a) Does she need a visa? [most likely]
b) Does she have to pay taxes? [likely not because of the small amount of income]
I'm surprised that the visa issue wasn't addressed before the women entered Germany. I suspect that for "Au-Pairs" (that's the common expression in Germany) the visa requirements are fairly simply - but they DO exist. It shouldn't be that difficult to find out as there are thousands of them in the country.
Posted by
Eastern Iowa, USA
8124 posts
I am afraid that the family she works for put her in a bad situation. The family themselves have the equivalent of long term Visas via the military, and through arrangements with the German Government and the Military, they do pay US taxes, but no German Taxes (other than VAT). On the other hand...she as an individual is paying neither US or German taxes (or at least she is under no obligation to pay US taxes). The only legal ways she can work as stated is: Get a work visa; arrange for the family to have her added to their papers as a member of the Family, Live with the 90 of 180 day rules of a tourist visa, though technically she should not be earning money.