Offering construction services to the German market mainly depends on acquiring a license to do business in the construction related profession . In addition, specific regulations assure lasting quality and fair competitive conditions.
PROFESSIONAL QUALIFICATIONS - Many professions in the construction sector involve regulated skilled crafts, and for their practice a master craftsman diploma or an equivalent qualification level is required. Similar restrictions apply to architects and consulting engineers. It may also be necessary to notify the appropriate professional chamber/s before starting business operations in Germany. More information is available in our section "Service Occupations."
MINIMUM WORKING CONDITIONS - Enterprises from other EU member states intending to send construction workers to Germany have to make sure that the underlying employment contracts comply with certain minimum working conditions such as minimum wages. Information about the statutory working conditions for deployed foreign workers can be found on the website of the German Customs Administration.
OCCUPATIONAL SAFETY - Construction sites must comply with safety standards as described in the German Construction Site Regulations Ordinance (Baustellenverordnung) which implement related EU directives. Further information is available on the website of the Federal Institute for Occupational Safety and Health (Bundesanstalt für Arbeitsschutz und Arbeitsmedizin).
TAX WITHHOLDING - Foreign enterprises that offer construction services in Germany should be aware of the tax withholding tax procedure governing B2B contracts. According to the Illegal Employment in Construction Act, contractors are obligated to withhold a tax in the amount of 15 percent from the agreed total remuneration (consideration). However, foreign service providers may apply for a tax refund or an exemption. Detailed information and individual support are available at the Tax Information Center of the Federal Central Tax Office. On its website, a comprehensive leaflet on the topic is available for download.
PRODUCT CONTACT POINT FOR CONSTRUCTION - Complying with EU law, Germany has established a Product Contact Point for Construction in order to facilitate the free movement of goods in the building sector. The Product Contact Points' task is to provide EU service companies with information on rules applicable to the incorporation, assembling or installation of a specific type of construction product. The German Product Contact Point for Construction is located at the Federal Institute for Materials Research and Testing (BAM).
POINTS OF SINGLE CONTACT - Service providers from EU member states may turn to their local Point of Single Contact (PSC). PSCs, located in each federal state, are designed to facilitate administrative procedures when entering the German market. More information is available in our section ''EU Service Market.''