Current developments in international mobility

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Parallel Residence Permits: Berlin Administrative Court clarifies legal framework (VG 29 K 122/24)

Update: Introduction of the EU Entry/Exit System – Phased Implementation from October 2025 

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When employees who are under a valid German employment contract fall ill during a work-related stay abroad, employers require not only sensitivity but also a clear understanding of the legal framework. As an employer, you bear responsibility—for both compliance with legal requirements and the smooth handling and communication of a sick leave. 

First and foremost, it is essential that your employees understand their obligation to inform you immediately about an illness. This notification must not only state that the employee is unfit for work but also indicate the expected duration and the current location. Prompt contact—ideally via telephone or email—is crucial to ensure planning certainty. 

A medical certificate of incapacity for work must be submitted no later than the fourth day of illness. This certificate must be forwarded to both you, as the employer, and the relevant health insurance fund. Depending on the host country, transmission may occur through local authorities, especially if a social security agreement with Germany exists. In non-agreement third countries, employees bear full responsibility for timely submission. As an employer, you should inform your employees in advance of these obligations and, if necessary, assist them with appropriate forms or translation aids. 

Employees are generally entitled to continued payment of wages during sickness even during an assignment abroad—provided the illness has been properly reported and documented. The regulation of medical costs varies by country of stay. Within the EU or in countries with social security agreements, the European Health Insurance Card (EHIC) may be used. In other cases, employees must initially pay for their medical treatment and may later seek reimbursement from their statutory health insurance—limited to the rates customary in Germany. 

To best protect your employees, it is advisable to take out supplementary international health insurance. This can minimize financial risks and provide organizational support in the event of illness—for example, in locating suitable medical facilities or arranging repatriation. 

As an employer, you should ensure that all relevant information regarding sickness notifications abroad is communicated before travel commences. Clear documentation, prepared forms, and a designated point of contact within the company can save considerable time and reduce uncertainty in critical situations. 

Pursuant to the Act on a Tax Investment ImmediateImplementation Programme to Strengthen Germany as a Business Location, promulgated on 18 July 2025 in the Federal Law Gazette (BGBl. I p. 161), several significant fiscal amendments have been enacted, addressing, inter alia, the domain of electric mobility. A key provision concerns the elevation of the gross listprice threshold applicable to electric vehicles under the companycar taxation regime. Effective 1 July 2025, this threshold will be increased from the current €70,000 to €100,000. Correspondingly, § 6 (1) No. 4 sentence 2 No. 3 of the German Income Tax Act (EStG) has been revised to reflect this adjustment. 

Critically, entitlement to the new threshold is determined by the date of acquisition - that is, the initial provision of the vehicle for private use - rather than the date of order. Accordingly, vehicles ordered prior to 30 June 2025 but first acquired or put to private use thereafter will already benefit from the elevated €100,000 threshold. 

For businesses, this regulatory amendment provides greater latitude in selecting vehicles as part of mobility packages, maintaining the fiscal attractiveness of higherpriced electric vehicles. The measure not only supports sustainable fleet strategies but also contributes to bolstering Germany’s standing as a competitive business location. 

Under § 9 (1) sentence 3 No. 5 sentences 2 and 3 of the Income Tax Act (EStG), the establishment of a double household (doppelte Haushaltsführung) requires that an employee maintains a separate household outside the location of their primary place of work while also residing at the location of that primary place of work, and that this household involves the occupation of a dwelling and the sharing of livingcost expenses. 

In its judgment dated July 31, 2025 (file reference VI R 12/2023), the Federal Fiscal Court (Bundesfinanzhof, BFH) ruled that the question of financial contribution to the cost of living within the meaning of § 9 (1) sentence 3 no. 5 EStG does not arise if the taxpayer maintains a one-person household at the location of their main center of life within the framework of a double household. 

In this case, the plaintiff had income from non-self-employed work as a working student, student assistant, and research associate. He rented his own accommodation at his place of study and, at the location of his main center of life, occupied the entire upper floor of his parents’ house. The upper floor included a kitchen, bathroom with WC, hallway, and two rooms, and had been made fully available to the plaintiff by his parents for his use. 

Based on the findings of the lower court, the Federal Fiscal Court had no doubt that the use of these premises fulfilled the criterion of possessing one’s own dwelling. The fact that the parents did not charge rent and allowed the plaintiff to use the apartment free of charge did not change this assessment. According to the lower court’s findings, there was no indication that the plaintiff was integrated into his parents’ household, meaning the property was not to be considered a multi-person household. 

The Federal Fiscal Court therefore regarded the upper-floor apartment as a one-person household. If the taxpayer maintains such a separate household independently - without being integrated into the family household - no examination of financial participation is required. 

     

 

Technological Collaboration with ICUnet Group: Expansion of Digital Services in Global Mobility Consulting 

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​Veranstaltung/Thema	Datum/Uhrzeit
​Immigration Law Conference Registration​​ »​​​​​​​ ​	​​19. November 2025 14:00-17:30,​ Hilton Frankfurt City Centre​

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