I am a US citizen and have been offered a job by a company in the US. However, they want to give me a US contract and assign me to work at the parent company office space in Germany. So I will be living and working in Germany, but will have a US contract. As an aside, I know all the upper management people in the company, have worked with them in the past, I'm not worried about them scamming me....but I'm not sure how some of this works. I have a few questions:

  1. How backwards is it if they only want to pay me in US dollar?

  2. At one point my contact told me I could be paid in a combination of USD and Euro, the thought being I could put the USD into my savings, and use the Euro to live off. Is this type of arrangement legal? Does it even make sense? We're talking about a job that's prob $150,000 USD/year.

  3. As a US employee I would be given US insurance, and they would supplement it with international insurance. Does anyone have experience with such insurance?

  4. What else am I not worrying about?

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    In my experience, it is more normal to have the local branch handle pay, insurance etc. They are set up to deal with taxes and other legal requirements. Any explanation of why they want to give you a US rather than German contract? – Patricia Shanahan Mar 1 '18 at 15:34
  • I believe you'll be liable for income taxes and the like in Germany because you will be physically in Germany while you are doing the work, regardless of the jurisdiction for which the contract is drawn up. So the portion of your salary in euros should include the withholding for the German tax office. If I were you I'd seriously consider consulting a German lawyer with a practice in labor law before agreeing to this. It may depend, however, on the length of the engagement. Is it open-ended or for a short term? – phoog Mar 1 '18 at 17:01
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    @PatriciaShanahan "more normal to have the local branch handle pay, insurance etc": all the more so considering that the "local branch" is actually the "parent company." – phoog Mar 1 '18 at 17:02
  • @phoog Why just the portion paid in Euros? – Patricia Shanahan Mar 2 '18 at 3:11
  • @PatriciaShanahan because the German tax office collects taxes in euros. I just mean that if the salary is paid in different currencies then the euro portion should be enough to cover the German tax withholding as well as expected local expenses. – phoog Mar 2 '18 at 3:23

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