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I would like to report on the ICT card. This is the residence permit for COMPANY INTERNAL TRANSFERRED EMPLOYEES to work in Germany.
What are the conditions for obtaining the ICT card?
How does the procedure work and what are the special features compared to other residence permits for employment?
Here are the seven most important points:
1. posting:
The foreigner is sent to Germany by a foreign company to work in a German company.
There is a family relationship between the two companies.
The foreign national is deployed in Germany within the framework of his or her employment relationship with the foreign company.
This employment relationship must have existed for at least six months.
The foreigner does not establish an employment relationship with the German company.
This is where the distinction is made from the residence permit for employment, which requires the establishment of an employment relationship with the German company, such as the EU Blue Card.
2. activity as a manager or specialist:
The foreigner is a MANAGING EMPLOYEE if he has a managerial function at the company in Germany.
This can be, for example, the head of a department who reports directly to the management, or a managing director or authorized signatory.
A SPECIALIST has special company-related knowledge. This knowledge must be essential for the domestic company. He must have a high level of qualification and professional experience.
Only proof of professional qualification is required for managers and specialists.
We see: a recognized university degree is – in contrast to other residence permits for employment – not mandatory, but helpful.
3. duration of the posting and the ICT card:
The secondment must be for more than 90 days and may last a maximum of three years.
The ICT card is valid for as long as the duration of the posting, i.e. a maximum of three years.
The foreigner does not necessarily have to return abroad at the end of the posting. They can switch from the ICT card to another residence permit directly in Germany at any time.
For example, they can establish an employment relationship with the German company and apply for a residence permit as a skilled worker or EU Blue Card.
4. secondment contract:
The contract between the foreign company and the foreigner must be submitted. These must be regulated:
Place of employment, duties, remuneration and other working conditions of the transfer, as well as the entitlement to return to the foreign company after the end of the posting.
There are no fixed minimum salary levels. The salary must be appropriate for the position.
In our experience, a gross salary of EUR 5,000 can usually be sufficient.
5. approval of the Federal Employment Agency:
The Foreigners’ Registration Office will obtain the necessary approval from the Federal Employment Agency as part of the visa procedure.
TIP PRELIMINARY APPROVAL. the German company can obtain the approval before the foreigner applies for the employment visa.
We recommend applying for prior approval.
6. on the visa procedure for ICT card:
The foreigner applies for the visa at the German embassy or consulate in the country where he or she is currently living.
If the foreigner has a European residence permit, they can usually apply for an ICT card directly in Germany.
If the foreigner is staying in Germany with a Schengen visa, they can only apply for the ICT card directly in Germany in exceptional cases.
It is also possible to apply using the FAST TRACK procedure.
This is particularly useful if the waiting time for an appointment at the embassy or consulate is very long.
7. special features:
The legal nature of the secondment results in important practical differences compared to establishing an employment relationship with the German company.
Social security: social security agreements are in force with many contracting states which provide for exemption from pension and unemployment insurance in the event of a posting. This can lead to a saving of approx. 20% in non-wage labor costs compared to employment with the German employer.
Health insurance: there is no compulsory membership of statutory health insurance, but the possibility of taking out private health insurance, which offers favorable rates due to the temporary stay and can lead to cost savings of approx. 50% compared to statutory health insurance.
Tax: The German company is not obliged to pay income tax. Foreigners must pay tax on their income by filing an income tax return.
Labor law: with the exception of some general principles, German labor law does not apply.
The period of residence with an ICT card does not count towards fulfilling the waiting period for obtaining a settlement permit.
The ICT card allows family reunification. The duration of residence of the family members counts towards obtaining a settlement permit.
Please note that despite great care, we cannot guarantee the accuracy and completeness of the information.
This video is also not suitable to replace an individual consultation.
If you have any questions, please feel free to contact us.