Published on July 14th, 2025
Have you secured a job with a German company and are wondering whether it would be better for you to have a local contract or an intra-corporate transfer (ICT)? Have you heard the term “Local Plus” but aren’t quite sure what it means? We have all the insider information on the pros and cons of each option when negotiating a contract in Germany.
ICT
ICT is the abbreviation for Intra-Corporate Transfer. This is an option when the company has an entity both in your home country and the country you are moving to. An Intra-Corporate Transfer is characterised by extra relocation support from the company. This generally includes a cost of living allowance, mobility premium, relocation support, and often property cost support. From schooling to repatriation, the company provides assistance, reducing the load on you. You can continue to pay your pension in your home country.
Local Hire
As a local hire, you are employed and pay taxes in the host country. As a result, you also qualify for benefits in the host country, such as child benefit or unemployment benefit. The company generally does not provide any additional financial support, with the exception of immigration support and flight tickets for foreign hires in some cases.
Local Plus
Local Plus is a more recent development and is gaining in popularity all the time. Essentially, this is a local hire with some of the benefits of an ICT, particularly at the start of the contract. Immigration is usually supported and there is often a lump sum as an instalment allowance. There is more support for the first year than with a classic local hire.
Point of Caution
When negotiating a contract, please be particularly careful regarding the salary offered. Remember that taxes vary considerably between countries. An offer that seems impressive may turn out to be considerably less once you deduct all the payments and calculate the net amount.
Conclusion
There is no “one size fits all” answer to which type of contract is best for you. It depends on a number of factors, such as how long you will be working abroad for, whether you are moving alone or with your family, your job description and where you are moving from.
Further Assistance
If you need any help at all in negotiating this important but sometimes overwhelming aspect, do not hesitate to get in touch with us at Expats Guide, we will be happy to help!
