Complete information about studying in Germany?

Internet Earnings Taxable for an Australian Studying in Germany?

• I would like to develop an Internet based subscription website where people can subscribe to access exclusive content, I would charge for this. I am an Australian student studying while living in Germany and need to know what taxes I would be required to pay and to whom; Australia and / or Germany? I would also like information regarding whether I would be required to create a limited company (and where and how), or whether I could operate such a website in my spare-time as a hobby, tax free. Presume the website generates $4,000 profit per month. Additionally, what would be the best method to save/invest earnings from such a website. Thank you very much.

• Answer:

  I will answer your question in several parts. a) "Gewerbeanmeldung" Yes, you must pay taxes here in germany and you will have to go to your local municipality and search the "Gewerbeamt" to get the permission to work self-employed. What you have to get is called "Gewerbeanmeldung" or sometimes "Gewerbeschein". It will cost a fee (this will be about 20 Euro) Please keep in mind that you can get punished here in germany if you do not get the "Gewerbenameldung" before you start your business: "Wann ist anzuzeigen? Die Anzeige ist gleichzeitig mit Beginn des Betriebes bzw. des anmeldepflichtigen Ereignisses zu erstatten. Die Unterlassung der Anzeige kann als Ordnungswidrigkeit mit einem Bußgeld bis zu 1000 EUR nach der Gewerbeordnung und unter Umständen auch nach dem Gesetz zur Bekämpfung der Schwarzarbeit mit Bußgeld bis zu 300.000 EUR geahndet werden." from: ( http://www.essen.de/Deutsch/Rathaus/Buergerservice/dienstleistungen/g_dl/GewerbeAnUmmeldung.htm#Gewerbeanzeige ) b) Foreigner As you are a non EU foreigner you will need a work permission as well: "Ausländer Ausländer mit Ausnahme der EU-Ausländer, die in eigener Person im Inland eine gewerbliche Tätigkeit ausüben wollen, bedürfen einer Aufenthaltserlaubnis der dafür zuständigen Ausländerbehörde, nach der ihnen die Ausübung des betreffenden Gewerbes ausländerrechtlich gestattet ist." from: ( http://www.muenchen.de/Rathaus/lhm_alt/mde/referat/kvr/gewerbe/anzeigen/60426/index_m.html#Auslaender ) So you will have to get this work permission before you got to the "Gewerbeamt". Maybe the "Ausländerbehörde" will be in the same house than the "Gewerbeamt" but this is different form towns to town here in germany. But you will already know your "Ausländerbehörde" or you local municipality will be able to help you to find out where they are. c) Tax You will be contacted and hopefully informed by the "Finanzamt" how much taxes you will have to pay and how the VAT stuff will be handled. This is a complicated matter as it has to be decided by the bills (inside EU, Germany, outside EU) you will write to your customers if VAT will have to be paid. You will however have to pay income tax anyway, no matter where you cash the cheques. I would really advice you to ask a tax expert ("Steuerberater") to help you with the complex tax stuff: I´m self employed for more than ten years and still the tax laws here in germany are so complex that I neeed an expert to help me. And paying not enough taxes wil be punished as well: sp spend ther money and find a "Steuerberater" in your town. d) Bank My dear colleaugue politicalguru-ga mentioned that the best bank you can get here to cash cheques in US $ is Citibank. You will however be quite frustrated when you cash the cheques, as all banks here will require rather high fees. (I´m frustrated every month when I get paid in a US $ check and cash it.) But there´s no bank here without fees for US $ checks. Good Luck for your new business. If anything should still be unclear please post a clarification request before you rate or tipp my answer. till-ga Search strategy: ( ://www.google.de/search?sourceid=navclient&hl=de&ie=UTF-8&oe=UTF-8&q=gewerbeschein+ausl%C3%A4nder )