Are you considering changing your existing German residence permit to a German freelance visa? Read this and check if you meet all German self-employment visa requirements before you start preparing your application to change your current German residence status.
Any legal German resident can become self-employed in Germany. German-born citizens have to inform the local Finanzamt and apply for a tax ID to start their business. Foreign citizens living in Germany can also start their business however they have a few extra obligations to fulfil first.
If you are a foreign citizen residing in Germany legally, then you can simply change the existing resident permit into a German self-employment permit. They still need to meet some basic requirements before changing the purpose of their stay.
Let’s see the requirements for changing your existing German residence permit into a German freelance visa.
Note: This guide is for freelancers who are currently staying in Germany on a valid residence permit. If you are applying for a German Freelance visa from your home country then please read this post.
Quick Navigation
1. You Must be living in Germany legally
You should be a legal resident of Germany when applying for a German self-employment permit. If you already live in Germany and meet some of the following conditions, then you may be able to change your existing residence permit into a German self-employment work permit.
- You successfully wrapped up your German university degree, and now hold the 18 months job search visa
- You are the spouse of a person legally residing and working in Germany
- You currently hold a German full-time employment visa and want to switch to self-employment (possible under certain circumstances)
This will take care of the valid resident permit part. You will also have to show proof of a valid address in Germany.
So how do you prove a valid residential address in Germany?
Anyone living in Germany registers their address at the local citizen’s registration office or Bürgeramt. This procedure is known as Anmeldung. Once the registration process is completed, you’ll receive the confirmation of the living address registration Meldebescheinigung. You will later need this document for your self-employment permit in Germany.
2. You Must Have a Valid Health Insurance
All residents in Germany must have health insurance. If you have been on an employee’s health insurance plan in Germany, then you will have to inform your health insurance provider once you register as a freelancer.
As a self-employed person, you’ll need an insurance plan that is meant for self-employed people. Here are some visa office-approved health insurance providers in Germany.
Bear in mind that health insurance for self-employed people is VERY expensive.
In Germany, the employer pays for almost half of the health insurance premium and the rest is shared by the employee. As a self-employed person, you wear both hats- so you have to pay for both the employer and the employee part of the monthly premium.
You have the option to choose either public or private health insurance.
Both insurances charge according to your monthly income. The public health insurance premium is about 14% of your gross income. But that’s a BIG but, the public system has a maximum monthly contribution cap.
So after a certain income threshold, you end up paying a flat rate regardless of how high your monthly income gets. As of 2019, this threshold was at about EUR 5,500 as gross income per month.
3. You Must be Able to Provide Proof of (Sufficient) Income
This requirement for changing an existing German residence permit into a German freelance visa is the same as any other regular resident permit.
You should be able to financially support yourself through your business. Your caseworker will ask you for proof of income.
German freelancers visa applicants are typically asked to submit the previous years’ income tax statements. Usually, this should suffice as proof of regular income.
But how can a new freelancer who obviously has not been self-employed before have income tax statement(s) from the past year(s)? This is a bit of a loophole in German love for bureaucracy.
Some applicants have been asked for an income projection from a tax consultant, a business plan, invoices, copies of contracts, and letters of intent from potential clients as well.
The minimal monthly income could be different depending on your location.
Some places are much more expensive than others. In some cities, you could get away with €700 per month, but in others €4000 won’t cut it.
Caseworkers at foreign offices assume freelancers to be the experts in their field. Some earn even more than a regular employee in their field and experience. You should aim for a much higher monthly net income from your business.
4. You Must Have German Clients
Depending on who you ask, you will get a different reply.
German Act on the Residence, Economic Activity and Integration of Foreigners in the Federal Territory clearly states that:
(1) A foreigner may be granted a temporary residence permit for the purpose of self-employment if:
1. an economic interest or a regional need applies,
2. the activity is expected to have positive effects on the economy and
3. the foreigner has personal capital or an approved loan to realise the business idea.
This means the applicant has to demonstrate that they have existing or potential clients in Germany. You can prove this by showing invoices or contracts or through letters of intent by German businesses.
Some freelance visa applicants have reported that they were able to get a visa without any German clients. Although many have been asked to show letters of intent from German-based clients.
You can also apply for your German freelancer visa with your clients from Upwork. Just make sure your bookkeeping is compliant with German tax laws.
Our recommendation would be to work with as many German clients as you can. Freelance visa applications are analysed on their own merits, and it’s best to cover all your bases. And this is an important one.
Suggested reading – German freelance visa checklist for foreign nationals living outside the EU
Have you ever applied to change your existing German residence permit into a German freelance visa? How was your experience? Did you meet all the German self-employment visa requirements or had to provide additional documentation to your foreigner’s office? Tell us in the comments below.