How I started Freelancing in Germany
Making the transition from corporate employee was fairly straightforward for me. You can read all about how I landed a corporate job in this post about how I became a lifetime expat in Germany
I stayed at my corporate job in Germany much longer than I wanted to in order to get my unbefristet aufenthaltserlaubnis (permanent residence permit) I decided I wanted to stay in Germany, but that I wanted to freelance.
At the time, I was being what’s called ‘body shopped’ at the client. The digital firm I was working for would sell me as a member within the client’s internal team. This is a popular method of keeping people billable for consultancies.
I was tasked with writing the client proposals. When I saw how much the company was charging for me per day (often 8-1200 EUR) Iike many other freelancers, I got the idea to quit and contract directly with the client. Even if I made half of that, it would be way more than my salary.
There were problems with this plan.
Companies can block you from doing this for six months in a non-compete. As a freelancer you also have to be careful about contracting exclusively with one company because of something called Scheinselbstaendigkeit; meaning you aren’t really self-employed but rather working for one company and they don’t have to pay any of the social insurance or provide employee benefits. More on that here.
I never ended up directly freelancing for big clients, but rather launching an online e-commerce business (helped by Gründungszuschussgeld) while contracting at smaller agencies. I got these gigs due to the network I had built up working for ten years at the agency in Munich.
Visa and Residence Permits
If you’re not a German or EU citizen you’ll need a freelance visa (residence permit) to work as self-employed individuals in Germany, which requires having German clients and several thousand euros in savings.
The application process takes several months (surprise!), during which you’re not allowed to work unless your current residence permit already allows self-employment – by the time I started freelancing I already had me permanent residence so I could do whatever I wanted.
“I also need to get a job contract and cant just do freelance which I love more until I get a permanent residence.” — Yara
If your existing permit doesn’t cover freelancing you’ll need enough savings to survive the time without income while waiting for approval. If you’re reading this outside of Germany it might make sense to to apply for the freelance visa from your home country before relocating to Germany.
Getting Started: Bureaucracy & Language
I had an unfair advantage, my brother-in-law is Steuerberater so he did all my paperwork. I won’t attempt to give you a step-by-step on how to become a freelancer in Germany since there are much better resources out there like this one from all about Berlin on how to start a business in Germany.
What I really want to do in this post is share more personal stories of other immigrants and internationals experiencing making a go of it as freelancers or solopreneuers.
“Everything is so COMPLICATED to set up. Taxes. The weird system where you pay in and then they average your taxes based on a few years previously…” — Andrea H
The three things I will say are: if you can, join the Kunstlersozialkasse (KSK), speaking German really helps and if no German, than at least English and finally it helps to understand Germany doesn’t make it easy to be self-employed.
“I realised that the bureaucracy around tax and health insurance and so on was way too much for my brain. I’m not geared that way. So I was I was like, fuck it, I’m getting a job.” — Penny Blackmore
The KSK
The Künstlersozialkasse (KSK) is a system unique to Germany that helps self-employed artists, writers, and creatives (this includes creators and influencers) access public health, pension, and nursing care insurance at affordable rates—just like employees.
If you qualify, you only pay about half the usual contributions; the rest comes from a fee on companies that use creative work* and a money from the Government.
This makes freelancing in Germany much more sustainable; you get full social insurance coverage without having to pay for it yourself – even Gesetzliche Krankenversicherung can get pricey if you’re making good money. If you work in the cultural arts or media it can be incredibly helpful.
*this means your German clients have to self report to the KSK that they’ve used your services and then pay an extra amount, usually around 5% of the project fee directly to the KSK – I find the law here confusing, so probably a good idea to do some research and at the very least let your German clients know if you are in the KSK or not.
Speaking German (or English)
Of course if you’re freelancing on remote projects, you can speak in your home language, but for everything else speaking German or at least English will go a long way. Even if you’re freelancing at an international company where English is frequently spoken, it’s not great to be that person in a meeting that forces everyone to speak English.
Working entirely in English doesn’t have to be a barrier. Many solopreneurs, — myself included — have international clients across Germany, Canada, the US, UK and the world.
“Germany wants you to be an employee”
A German friend who has founded several businesses once said this to me. We have an ongoing debate as to whether life is better in Germany or America (I think Germany, he thinks America). He is routinely frustrated with business culture in Germany.
“It’s difficult to set up a freelance business (not like the ease of an LLC in the USA). Germany is self-employment unfriendly – they want people to be employed. The social system doesn’t work without employed people so there are very few incentives to become self-employed and start businesses!” — Jordan Beck Wagner
I think of this phrase a lot, usually when I’m doing my German taxes and it is true. Still it’s not impossible and if you want to start your own solo business you shouldn’t let the German system stop you. It’s just helpful to know what you’re in for in advance.
“I had issues because freelancers have no legal right (kein Anspruch) for Elternzeit i.e. taking time off to spend with children. This meant that my health insurance contributions were too high and TK along with the Finanzamt wouldn’t accept that I was taking time off and therefore needed to pay less for my health insurance and my tax vorzahlungen. I got Elterngeld but it took them 8 months to process my application 😅” — Ellie
How to get clients as a freelancer in Germany
Be Visible & Network
Penny Blackmore’s worked at AJ&Smart, a Berlin-based digital product studio, where she benefited from the company’s strong public presence and frequent social media content. She was in videos and pictures that showcased her expertise to the broader industry.
When she decided to go freelance, the transition was remarkably smooth thanks to this built-in visibility:
“Pretty much within a week I had some clients after changing my LinkedIn status to show I’d gone freelance.”
AJ&Smart competitors had seen her work and reached out directly, saying things like “Oh my gosh, you used to work at AJ&Smart. Like, can you come and work with us on some freelance stuff?”
Often having a network and a little visibility goes a long way and can be an excellent launching pad for success as a freelancer.
“The most valuable one and the one that’s worked the most and well for me has definitely been just network, people I know [and ] referrals..I worked with this client a couple of months ago. He and I had worked at the same company for like two months and he just happened to remember me. So it’s a lot of like this kind of thing; either somebody I used to work with or like a friend of a friend kind of thing.” — Gray Dawdy
Leverage existing relationships
This is a subcategory of networking, but not quite the same thing. I think of networking and going out and meeting new people. Leveraging existing relationship is identifying who you already know in your immediate network who could either become a paying client or knows someone who could.
Some people have been able to start their own businesses with a client or two ready to go, by taking them after they’ve left the company (often with permission). Proceed with caution if you take this route. Sometimes it’s win-win. A large client for you may be too small for your previous employer, best to be open with your employer and understand if there are any legal ramifications for doing this.
Build and Create Community
A great way to meet likeminded people and build strategic partnerships is to start a community if you see a gap. For example Gray Dawdy started a Meet-up for product designers in Munich, which has lead to connections and projects.
I started The Germany Expat Business show because I noticed no one was talking specifically about foreigners in Germany who had started small businesses. It’s a passion project, but it’s also been a great networking tool. It’s increased my visibility and the podcast gives me an excuse to connect with people, and connect them to other people.
Use Platforms to Freelance in Germany
A great way to get started freelancing in Germany is to use platforms like Upwork or Malt (which allows you set search parameters for Germany in English). I don’t recommend staying on these too longs, as they can be a race to the bottom, but they’re good if you just need to get those first few clients to get some traction.
A platform that works well for people that provide services that you can’t provide remotely or online is CoTasker, a Berlin start up. This is not a platform to build a career on, but you can get started providing services around home renovation, transport, interpreting, pet care and more. Many a side-hustler has gone on to build an impressive business by figuring out one of these markets.
Freelancing in Germany as a Parent
One of the reasons I love working for myself is flexibility. After I had my daughter, I knew I couldn’t go back to be on a 9-5 schedule. The earlier quote about not being able to get (paid) Elternzeit if you’re a freelancer is true and something to mitigate (that’s why the KSK was so critical for me, I did get all my paid Elternzeit through it).
What’s also true is there are endless school holidays in Germany! Well beyond the six weeks allotted by most companies. If you have control over your schedule, this can become less of crisis, even if it means you have to pack a lot of work between holiday schedules. It’s a tradeoff I’m happy to take.
The Right tools for Taxes and Freelancing in Germany
There are SO many more tools for freelancers in Germany than there used to be! From Sorted, to Accountable for doing taxes as, to Firma for setting up your German business to Moxie, an EU-friendly CRM*, and there are a ton more. Download our free guide that includes over 35 resources for starting a business in Germany, many of them are included.
“I started with Sorted, but then I realized it wasn’t robust enough for what I needed. And so I ended up switching over to Accountable. But that whole process just took so much time. I wish I had done a bit more research into the programs and not just like jumped into the first one. That would have saved me a lot of stress in the long term.”
— Jordan Beck Wagner
Why Freelancing in Germany is Still A Good Option
If you’ve read this far you might be thinking ‘Forget it!’, but don’t be discouraged! If you’re a free bird who can’t be trapped in a 9-5 or for can’t find employment due to lack of German language skills or recognition of qualifications from your home country, self-employment can be a great path forward.
Starting your own business is the ticket for creating work you love, self-sufficiency and if you’re lucky financial freedom as an Ausländer in Germany. The key is to have the right mindset, expectations and be ready and prepared for the process. Viel Glück!
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