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‘Intimidating’: What it’s like to be self-employed in Germany in 2024

Being self-employed or freelance in Germany has lots of positives but it can also be costly and difficult - especially during an economic slump. The Local readers share what it's like working for yourself in Germany in 2024 along with their advice.

'Intimidating': What it's like to be self-employed in Germany in 2024
A man works on a laptop in cafe. What's it like being self-employed or freelance in Germany. Photo: picture alliance/dpa | Sebastian Gollnow

Working for yourself in Germany can be a rewarding experience. But it’s fair to say that being self-employed is not for the faint-hearted.

With a lot of bureaucracy to wade through and high costs, those who decide to go it alone – whether through setting up a business or as a freelancer – can face hurdles.  

And it can get even more tricky during a cost of living crisis. A recent survey found that many self-employed people are facing difficulties finding assignments as Germany’s economy has slumped. 

READ ALSO: Almost half of freelancers in Germany struggling to find assignments

The Local asked readers to share their experience of being self-employed in Germany, what changes they’d like to see and their tips for others who are considering going down this path.  

‘Golden era is over’

There were mixed views on how the situation stands at the moment, although most said they had seen a dip in the market.

Freelance language teacher Joe, 54, based in Munich, said demand was still there “but less budget seems to be affecting some clients”. 

Andrew, 39, in Berlin, who is a freelance web developer, said “The tech market is tough right now, with the ‘golden era’ of the 2010s being over.

“I blame massive VC over-investment creating unrealistic demand in 2020 and now companies are cutting back.”

READ ALSO: Everything you need to know about becoming a freelancer in Germany 

Others said the slowdown was improving.

“I have a steady work stream for now and the market seems to be slowly improving, but there was a sharp downturn towards the end of 2021 and the market has been very noticeably harder since then,” said Michele, 33, who’s based in Berlin and is a freelance software engineer.

‘More difficult finding German clients’

Lots of people said they were looking for clients outside Germany.

Haylee, 34, a copywriter in Berlin, said competition was “super high” right now. 

“Luckily I can look for jobs in my home country (Australia) as well,” she said. 

Luc, 58, who’s based in Munich and works in business development for life sciences said it has been “more difficult to find German clients, but easier finding clients located in Asia that are looking for European entry and support”.

Self-employed or an employee? Being self-employed can be tricky but rewarding in Germany.

Self-employed or an employee? Being self-employed can be tricky but rewarding in Germany. Photo: picture alliance / dpa-tmn | Andrea Warnecke

For Erica, 40, looking outside Germany has also been a way for her to keep a steady stream of work.

The self-employed copywriter in Berlin said: “I have had a lot of prospects, new projects and clients in the past two years. I work across the US, UK and EU markets, among others, so I am not directly reliant on German clients. While other freelancers limited to the tech or generic marketing sectors have faced a downswing, my sector (corporate sustainability) is very active.”

Another respondent, Alex, 40, in Berlin, who works as a consultant for digital product development said it was harder to find assignments and that there was a higher expectation on creating content. 

Advances in technology are also a factor. A writer and journalist who has been freelancing for several years told us: “Several side gigs have been replaced by generative AI (blog posts and white papers).”

‘Everything falls on the freelancer’

When asked how Germany fares as a country to be self-employed in, respondents said it isn’t easy. 

“Compared to being a salaried employee it’s not that great,” said language teacher Joe in Munich. 

Most people mentioned the high cost of health insurance and other insurance contributions, as well as the extra paperwork. Others said it has become more difficult to find a tax advisor, and urged Germany to make processes around self-employed and freelance policies simpler. 

Gordon Barnes, 50, in Munich, who is an IT consultant said the biggest problem about being self-employed in Germany is “around pension and retirement planning”

“Everything is on the freelancer without any support,” he added. 

Jason Wright, 46, a freelance motorsport design engineer based in North Rhine-Westphalia said those going it alone need to be “prepared for a lot of paperwork and strict constraints on how you operate on a day-to-day basis”.

He said he’d like to see more support available in English “especially from the tax authorities”. 

READ ALSO: How to get a freelance visa for Germany from outside the EU

A woman working on her laptop.

A woman working on her laptop. Photo by Marcus Aurelius: https://www.pexels.com/photo/woman-using-macbook-pro-4063697/

Consultant Mike Moseley, 66, in Mülheim un der Ruhr, said he found the process of registering as self-employed and doing tax returns “intimidating”. 

Michele in Berlin said taking the first steps to becoming a freelancer in Germany is hard.

“This is not my first freelancing stint, so I’m quite accustomed to the processes, but the entry barrier is still fairly high,” said Michele.

Andrew in Berlin said, however, that once you get a tax advisor and fill in the correct registration forms, “it’s generally pretty straight-forward”.

Get a tax advisor, save and network

Many respondents advised getting professional advice on taxes. 

Alex in Berlin recommended networking to meet and talk with other freelancers, getting a separate bank account and trying to get a tax advisor “as soon as possible”. 

A few respondents to our survey recommended those who are eligible to apply for Germany’s artist social insurance fund, known as the Künstlersozialkasse (KSK), which provides artistic freelancers with an affordable way into the social insurance system.

“You can get copies of the application form in English if you need it, said a writer who wished to remain anonymous.

READ ALSO: KSK – How creative freelancers can pay less for German health insurance

The Local readers also recommended saving.

“Be sure to put something aside each month for retirement,” said Richard, 70, in Frankfurt.

Andrew in Berlin said people should set aside 25 percent of their income from the start for taxes, adding: “Another 20 percent will likely go to the Krankenkasse!”

Meanwhile, Erica in Berlin advised people to “think strategically through all aspects of business” when they venture into freelancing.

“Explore different pricing models beyond hourly, which doesn’t reward high experience or efficiency,” she said. “Connect with high-earning freelancers in your field and learn from them. Set boundaries with clients on timelines, scope, and service offers. Develop your own policies and processes to lead client engagements.”

Ultimately, the additional effort required to freelance makes some question if it’s worth it. Joe in Munich said: “Do whatever you can to avoid it…there is a lot of administration.”

Member comments

  1. The best thing I ever did while freelancing in Germany was to set up a private pension scheme called a Rürup Rente. 80% of the amount contributed is tax deductible. After paying in for 14 years, I got a private pension of 800 Euros a month, which my public health insurance ignores when assessing my contributions. Contact a good insurance broker for advice.

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CITIZENSHIP

‘Get in early’: Your tips for applying for German citizenship

Are you ready to apply for naturalisation in Germany? We asked readers about their experience applying for citizenship so far, and what tips they could share.

'Get in early': Your tips for applying for German citizenship

With Germany’s new dual citizenship rules officially coming into effect on June 27th, some prospective new Germans-to-be have been gathering documents and taking their language tests.

Yet, plenty of other candidates for naturalisation are still waiting to hear back about applications submitted months or even years ago.

The Local recently polled readers who were either already in the process of applying, or planning to apply for citizenship soon. Of 121 readers who took our survey, 81 percent intend to apply for citizenship compared to 12 percent that were still unsure.

Additionally, six percent said they will not apply, and the remaining few had already naturalised.

READ ALSO: What would German citizenship mean to foreign residents?

Here are some concerns and helpful tips from readers who have already started an application for citizenship.

How are current applications going?

Asked how the application process has been so far, those who have already applied or started putting together their applications had radically varied responses.

It seems that applying for naturalisation can be pretty straightforward or wildly frustrating, depending on where you live.

Some readers are having a relatively easy time with it, such as Nauman, from Pakistan, who notes that “in Berlin it is online, so all is good.” In the capital, the Landesamt für Einwanderung (LEA) opened up a central office at the start of the year and has entirely digitalised its processes, from the initial screening to the application itself. 

Not too far away in Brandenburg, Elshafie, who is 35 from Sudan, told The Local: “I’m getting quick responses by email – sometimes same-day responses.” So far Elshafie, who has lived in Germany since 2017 and is married with one kid, has secured an appointment for submitting papers in June.

Another reader also called out the ease of applying via a new digital portal. A 30-year-old reader who has lived in Germany for six years called the process “smooth”, adding: “I am lucky to be a resident of Hamburg which is one of the few cities that now have a digital application process.”

But even in places where a new, digital application process exists, people who applied prior to the digital process are sometimes left waiting while newer applicants . Such is the case for thousands of applicants in Berlin, many of whom have been waiting for years already.

READ ALSO: ‘I’ve waited four years’ – Foreigners in Berlin furious over German citizenship delays

“I applied in September 2023, and heard nothing back so far,” said Dilara, 30, a Turkish-born resident living in Berlin. As a bit of a sarcastic tip to other readers, she suggested applying as soon as you enter the country because “it will take years anyways”.

Dilara is not the only applicant left waiting without an explanation. In fact, a lot of readers had some choice words for the process, which in many cases can be very quite long and opaque. 

Daria, 26, from Russia said she applied in August 2023 in the city of Gießen. “They said to wait 20 months for the work on my application to start,” she told The Local. “Now they’re saying to wait 22 months. They don’t tell the name of the person in charge of my application and don’t answer any questions regarding my case. I think of suing them a lot.”

Another applicant consulted a law firm after the naturalisation office in Landkreis Harz said that they weren’t offering further consultations this year due to the high demand.

“I had my citizenship test and B1 language certificate ready. The last document I need now is my pension insurance history, and I just found out that the reason I don’t have it, despite requesting it twice, is that my address on file was wrong,” said Ryan Thomas Sanders, 35, from the US.

Even for those applying from outside of Germany, long delays with no communication seems to be the norm rather than the exception here.

Veronica Dierick, 66, said she handed in her application for citizenship by descent to the German Embassy in Belgium on March 5th and is still waiting for a response. 

A citizenship applicants reads the German constitution.

A citizenship applicants reads the state constitution in Germany. Photo: picture alliance/dpa | Marijan Murat

Advice from readers: gather your documents and start early

Bureaucratic processes in Germany are known to drive people crazy – even plenty of native-born Germans. 

So in some sense, the fraught process of applying for citizenship can be seen as the last, painful but vital step, toward truly becoming German.

That said, it’s definitely worth taking any and all extra precautions to make the process as easy as possible. So with that in mind, here are a few tips that might help.

Daria, who is still in the middle of a long wait on her own application, recommends making copies of all of your documents before sending them in, noting that she regrets not having done so herself – both to retain her own copies and also as means of proof of when and what she had submitted. 

She added, “We’re sitting in the same boat. Try to apply as soon as possible… as later you’ll regret that you haven’t applied sooner.”

Ryan Thomas Sanders suggests getting your language certificate and citizenship test out of the way early, even if you don’t yet meet the residency requirement: “These are probably two of the most time-consuming documents and you can and should get them taken care of early.”

Dani, 34, from the US said, “Always ask your local Amt about their current rules because they often differ from what is happening in Berlin or other larger cities.”

Meanwhile, Jon, 34, who has lived in Germany for five years provided an unsolicited endorsement for The Local, adding: “Because of this site, I’m feeling prepared and informed. I have everything ready to go once the applications are accepted for dual citizenship in June.”

He added that applicants should “stay organised and allow extra time for each step like getting test results, documents from an employer, or translations of original documents.”

All of which is great advice, and is aligned with the advice told to The Local by immigration lawyer Andreas Moser, who advises making sure your application is as neatly organised as possible.

READ ALSO: EXPLAINED – How to get a speedy response on your German citizenship application

If you’ve met all the requirements, gathered all the papers, and presented it all as neatly as possible, the only thing left to do is wait and hope or pray for the best. 

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