Posting workers: A1 and working conditions
Posted workers need A1 certificates (proof of home social insurance), and the employer must observe German minimum working conditions (Posted Workers Act) — including sectoral minimum wages in construction. The posting must be notified electronically to German customs (Zoll) before work starts, and customs inspects sites routinely.
SOKA-BAU
Anyone performing construction work in Germany is in principle covered by the SOKA-BAU holiday fund system — including foreign companies with posted workers. Contributions are matched by benefits and refund options — details in our SOKA-BAU article.
Trade licensing (Handwerksrecht)
Part of construction work belongs to the licensed crafts (Handwerksordnung) requiring a master craftsman qualification. EU service providers benefit from facilitations, but some activities require notification to or confirmation from the chamber of crafts — better clarified before signing the contract than after an inspection.
Tax: the 15 % construction withholding tax
For construction services a business customer must withhold 15 % of each invoice (Bauabzugsteuer) — unless the contractor presents an exemption certificate (Freistellungsbescheinigung) from the tax office. Without it you lose liquidity on every invoice: obtaining the certificate is one of the first steps before market entry.
The contract: BGB or VOB/B
The core risk sits in the contract regime and its formal duties — notice of hindrance, notification of concerns, acceptance, final invoice. More on our construction law page and in the articles on Bedenkenanmeldung and Schlussrechnung.
The most expensive mistakes happen before the first invoice
Missing exemption certificate, unnotified posting, unreviewed VOB/B contract — avoidable costs if market entry is planned with a lawyer.