Germany is one of the leading EU countries, but it is not the most attractive location for freelancers looking to work remotely. Nearly the entire economy of the German state is based on traditional industrial sector enterprises, and the development of startups is still proceeding at a slow pace.
For the self-employed in Germany, a special type of visa is available that allows remote work and the provision of services privately (Freelancer-Visum). This visa is conditionally classified into two categories – one issued to sole proprietors (Gewerbetreibender) and the other to freelancers (Freiberufler).
A clear advantage for applicants for the freelancer visa is the absence of criteria regarding the size of financial security. However, the digital nomad must have funds to pay for housing and meet basic needs.
German authorities primarily approve the possibility of freelancing for candidates who can prove that their projects can positively impact the national economy and culture. Also, the potential participant in the digital nomad program will have to convince German officials of the viability of their business idea and its attractiveness to the labor market.
Permission to cross the border of the German state is granted to the self-employed by the Consular Section of the German Embassy (Moscow, Leninsky Prospekt, 95A (entrance from Akademika Pilyugina Street)).
Freelance Visa Specifics
Initially, a freelancer needs an Einreise-Visum, which is valid for several months, to enter the country. After crossing the national border, the nomad must notify German officials that he has arrived in Germany to engage in freelancing (or to develop startups). In the department dealing with migration policy, it is necessary to obtain a document confirming the freelancer’s residence permit. Formally, it is considered equivalent to the digital nomad visa. The visa is issued in several types – for entrepreneurs (Gewerbetreibender) and freelance workers (Freiberufler), including artists, writers, architects, auditors, translators, tutors, and other representatives of liberal professions.
For Russians aspiring to participate in the digital nomad program, certain requirements are set, which include:
- The professional activity must meet regional needs and be of interest to the national economy;
- The client base must include at least 2 service users registered in Germany.
Despite the formal absence of financial security conditions, they are still imposed on applicants aged “45+” who are required to present a retirement savings plan. By the time of retirement (in Germany – 67 years), the pension amount of the self-employed must at least amount to 1,332 euros. If it is not possible to save this amount for social payments, financial security can be proven by property assets amounting to 195,000 euros (bank deposit, securities, real estate).
Freelancer Taxes
Visa holders are subject to a progressive tax scale, which varies from 0 to 45%. If the self-employed’s annual income does not exceed 9,700 euros, they are exempt from the obligation to pay income tax. For profits from 9,700 to 57,900 euros per year, the income tax rate is 14%. The higher the income, the greater the income tax.
Value-added tax is charged considering the specifics of the professional activity and the profit size at the initial stage of entrepreneurial activity. For instance, doctors and tutors do not pay VAT. If in the first year the self-employed’s income did not exceed 20,000 euros, and in the second year – 50,000 euros, then his business activity will be categorized as “small business,” and VAT will not be charged.
Visa Cost
The consular fee for processing the nomad visa is 75 euros. Services of the visa center additionally cost 23.5 euros (service fee). For children under 6 years and persons with disabilities (+ accompanying person), a service fee of 4.7 euros is provided.
Understanding all the bureaucratic intricacies on your own is sometimes not easy, but our experts are always ready to review your case and help on the path to a comfortable life.
Required Documents
To apply for a Freelancer-Visum, the applicant will need:
- Application form;
- National ID passport;
- International passport;
- Document proving financial security (bank statement with a deposit of at least 12,000 euros or a profit and loss report with a minimum profit of 2,500 euros per month);
- Color photo 3.5 x 4.5 cm (2 copies);
- Receipt confirming payment of the duty;
- Recommendation letters from previous employers;
- License for professional activity (if necessary);
- Document proving the existence of clients/employers;
- Diploma;
- Future business project plan;
- Portfolio;
- Health insurance policy (with minimum coverage of 30,000 euros);
- Retirement plan (for applicants aged “45+”).
Recent Changes in Visa Issues with Germany
Due to a severe shortage of skilled workers, the German authorities are interested in attracting foreign specialists providing services privately.
As of March 2024, the number of requests from Russians wishing to apply for Freelancer-Visum decreased slightly, but already at the end of July of this year, an active increase in requests on Google began to be observed.