Learn how to freelance in Germany with our step-by-step guide covering visas, client acquisition, health insurance, and taxes.
Freelancing has become an increasingly popular career choice, particularly among young professionals who desire greater control over their work-life balance. With its robust economy and welcoming policies, Germany is a prime destination for freelancers.
However, navigating the process of becoming a freelancer in Germany involves several steps, including visa applications, finding clients, and understanding local regulations.
This comprehensive guide will walk you through the essential steps and requirements for freelancing in Germany.
Who Can Freelance in Germany?
Anyone who finds work and secures a visa can freelance in Germany. You are considered a freelancer if you:
- There is an economic interest in Germany for your profession.
- Your work or profession will have a positive impact on the German economy.
Citizens of the EU do not need a visa or residence permit but must register their business and residence. Meanwhile, citizens of countries with special agreements with Germany (e.g., the US, Australia, Canada, etc.) can enter Germany, find a place to live, register their business, and obtain a residence permit without a visa.
Freelance Jobs in Germany
Freelancers in Germany typically belong to the “liberal professions,” including:
- Doctor.
- Dentist.
- Veterinarian.
- Lawyer.
- Notary.
- Patent attorney.
- Surveyor.
- Engineer.
- Architect.
- Commercial chemist.
- Auditor.
- Tax consultant.
- Advisory person.
- Business economist.
- Sworn accountant.
- Tax agent.
- Naturopath.
- Dentist.
- Physiotherapist.
- Journalist.
- Photo reporter.
- Interpreter.
- Translator.
- Pilot.
The German Ministry of Justice and Consumer Protection regulates these professions. Section 18 of the Income Tax Act outlines that freelancers conduct “independent scientific, artistic, literary, teaching or educational activities.”
How to Become a Freelancer in Germany?
The process of becoming a freelancer in Germany can be daunting but can be summarized in these steps:
- Travel to Germany
- Find Prospective Clients
- Open a Bank Account
- Get Health Insurance
- Register Your Living Address at the Bürgeramt
- Register Your Freelance Activity at the Tax Office (Finanzamt)
- Get Your Freelancer Residence Permit at the Immigration Office (Ausländerbehörde)
Step 1: Travel to Germany
Begin by obtaining a Long-Stay Visa (D-Visa) from the nearest German Embassy for freelancing. Remember, you cannot use a Schengen Visa for this purpose.
Step 2: Find Prospective Clients
You must demonstrate to German authorities that you have potential clients. Obtain “Letters of Intent” from at least two clients willing to hire you.
Step 3: Open a Bank Account
Open a German bank account to facilitate payments from clients. Consider banks that cater specifically to freelancers and self-employed individuals.
Step 4: Get Health Insurance
In Germany, health insurance is mandatory. Choose between public or private health insurance. Public insurers may require a residence permit before enrollment, so you might initially need private insurance.
Step 5: Register Your Living Address
Register your address at the local Resident’s Registration Office (Bürgeramt). You’ll need your passport, address registration form, rent agreement, confirmation of residency from your landlord, and any necessary status documents.
You will usually receive your Certificate of Residence Registration (Meldebescheinigung) on the same day, but you will have to wait a few weeks to receive your Tax ID Number. You need this number to register your freelance activity with the Tax Office, so it’s important to get started as soon as possible.
Step 6: Register Your Freelance Business at the Tax Office
Register your freelance activity at the local Tax Office (Finanzamt) with your Tax ID Number by completing the “Questionnaire for Tax Collection.” This process grants you a freelance tax number (Steuernummer).
You will have to submit the following documents, and any others if requested:
- The Tax ID Number you received when registering your address.
- Your bank details.
- A description of your freelance activity.
The process for receiving the freelance tax number can take a few weeks.
Step 7: Get Your Residence Permit for Freelancing
Finally, apply for a freelance residence permit at the German Immigration Office (Ausländerbehörde). This permit is usually issued for one to two years and can be renewed.
Read more on how to apply for a Germany Freelance Visa: German Artist & Self-Employed Visa with Requirements
Freelancer vs. Self-Employed in Germany
Though similar, freelancing and self-employment differ in Germany. Freelancers provide services for a fee per client, while self-employed individuals may own businesses and hire employees. The Tax Office determines your category when registering your activity and obtaining your Steuernummer.
Understanding Health Insurance for Freelancers in Germany
Health insurance is compulsory for all residents. Freelancers can choose between public and private health insurance. Public insurance contributions are about 14% of your income, while private insurance can be more cost-effective for young and healthy freelancers.
Understanding Taxes for Freelancers in Germany
Income Tax
Freelancers pay income tax based on their declared income, ranging from 14% to 42%, with an additional 5.5% solidarity surcharge. You are exempt from income tax if your income is below €9,744.
Value Added Tax (VAT)
Most businesses must charge VAT on goods and services. The VAT rate in Germany ranges from 7% to 19%. If you earn less than €22,000/year, you can be registered as a small business (Kleinunternehmer) and be exempt from charging VAT.
Conclusion
Freelancing in Germany offers numerous opportunities but requires navigating a complex process involving visas, client acquisition, bank accounts, health insurance, and tax registration. You can successfully establish your freelance career in Germany by following the outlined steps and understanding the distinctions between freelancing and self-employment.
FAQs
1. Can I freelance in Germany with a Schengen Visa?
No, you need a Long-Stay Visa (D-Visa) for freelancing purposes.
2. Do I need health insurance to freelance in Germany?
Yes, health insurance is mandatory for all residents in Germany.
3. What is the difference between freelancing and self-employment in Germany?
Freelancers offer services per client, while self-employed individuals may own businesses and hire employees.
4. How do I register my freelance activity in Germany?
You must register your address and then your freelance activity at the local Tax Office (Finanzamt).
5. Can EU citizens freelance in Germany without a visa?
EU citizens do not need a visa but must register their business and residence.