Have you always wanted to work as a freelancer in Germany but were unsure of where to begin? Getting started as a freelancer in Germany is a significant step because of how bureaucratic the country can be. Then there’s the fact that you’ll have to pay VAT and deal with a tax office in a language you can hardly comprehend. However, there are many advantages to working as a freelancer: You have the freedom to work wherever you want, and you can grow or shrink your firm according to your own needs. Check out insurances coverages in Germany that you may need to work as self-employed in Germany. Starting freelancing in Germany isn’t that difficult, either. Check out Generali for more insurance guidance. The following are a few things to consider:
Freelancers and self-employed are two different terms for the same thing.
You should first know the requirements for applying for German residency vary slightly depending on whether you’re self-employed (Selbstständiger) or a freelancer (Freiberufler). To obtain a residence permit, self-employed people need to provide additional documentation. Due to the fact that you’ll be creating work for other companies in addition to your own, you’re not required to submit a business plan or company profile as a freelancer. For example, if you are a freelance designer, you can bill your client as an individual and send them bills. Self-employed designers can submit bills to their clients as legally registered businesses.
Observance of Laws Relating to Freelancing
To work as self-employed in Germany, you must register with the German Tax Office. On completion of this process, you’ll receive a tax number from the government that will be used to collect taxes on your freelancing income. If you want to work as a freelancer in Germany, you must first obtain a German freelance visa. The freelance visa is, in fact, essentially a German residency permit because self-employment is linked to German residency. A freelancing visa or residency permit can be obtained when moving to the country. For information on the German freelancing visa process, please visit this page.
You’ll have to pay taxes if you’re self-employed. Furthermore, while health insurance is mandatory in Germany, their employers do not cover freelancers. This means that you’ll be responsible for the entire cost of your health insurance. Before starting a firm, professional liability insurance may also be necessary in some professions, so ensure you have the proper coverage in place.
Getting a small business license (Kleingewerbe)
If your first year’s revenue is less than €17,500, and each consecutive year’s income is less than €50,000, your company qualifies as a small business. Small business owners in Germany are often exempt from following the laws and restrictions of the German Commercial Code (HGB). The German Trade Register does not require small enterprises to be registered as well (Handelsregister). There are certain advantages to registering, but it may not be the best choice for everyone given the considerable expenses and duties. You can apply to become a Handelsregister member if that’s your preference.
Obtaining health care coverage
Even if your company does not cover you, it is a legal necessity in Germany to be covered by a healthcare provider. Employees who make less than €62,500 a year must be enrolled in the public healthcare system as a condition of employment. However, as a freelancer or self-employed worker, you can make your own decisions about what you do. So it’s your responsibility to examine the advantages and disadvantages of public health insurance (gesetzliche Krankenversicherung) and private health insurance (Private Krankenversicherung) before signing up for a health insurance plan. TK (Techniker Krankenkasse), AOK, and Barmer GEK are the three most frequent public healthcare providers in Germany. You will be required to provide an insurance card (Gesundheitskarte) embedded with a chip for each doctor’s appointment.
For private health insurance, you have a wide range of options to select from, with varying costs and levels of coverage from each provider. Be sure to do your homework before settling on a plan. A private health insurance plan is often recommended for people who are young, healthy, and may or may not stay in Germany permanently
Payments in Germany can be made in liquid form.
There are more than 175 countries in the world where Liquid accepts payments, including Germany. Wire transfer payments come within 2-5 business days, regardless of whether the invoice was submitted to an existing Liquid client or a new client. Aside from the USD, which is the default currency for Liquid’s bills, vendors can opt to have their payments sent in other currencies such as Euros and a few others. It is also possible to accept work orders in Euros and other select international currencies through Liquid. Customers that initiate payments are charged $3 for every US invoice paid and $8 per overseas invoice paid by Liquid. No matter how many non-Liquid clients Vendors ask to pay them, Liquid never costs them to accept payments.