German or British movie about pact with a deceased soul and strange scenes

It’s German or British movie probably - not horror, not comedy (1980-2005). The action takes place either in summer, during the summer months, or in a place where it’s warm at the time – perhaps it’s Halloween, or maybe Midsummer’s Eve. It’s not a blockbuster; I don’t recognise a single famous actor or actress. There’s a concept for the film and that concept is brought to life – a low-budget production, but one with a clear vision, featuring a small cast. There’s supposed to be some sort of performance; in the changing room, a boy makes a pact with a deceased soul in exchange for—I can’t remember what—perhaps for courage; he wants to impress a girl. In the mirror’s reflection, the boy sees himself, but with the face of the deceased, who raises a knife; the boy also raises a knife, and it turns out that this deceased soul can control the boy’s body. So he is threatened that if he does not obey, he will die.

If the boy does not free himself from this curse within a certain time, he will probably lose his soul. The girl, who he fancies and who fancies him back, sets off on a journey to a place where the dead go, a sort of in-between realm, all to help free the boy. She seems to meet a deceased acquaintance there, and somehow they eventually break the spell.

There was also a memorable scene where the boy was still possessed in the church, and as he walked across the tiles he saw flames; the priest asked him why he was walking so strangely, and he replied that he was practising karate.

At the end, the boy walks with the girl through some town, across the market square, and there’s a large mirror where the girl sees her own reflection and the boy’s reflection with a skull instead of a head, but it turns out it was just a joke on his part with a fake skull; they laugh, and that’s how the film ends.

Thank you in advance.