Freelance and self-employed

§ 21 Residence Act: freelancers, artists, founders; what to prepare and the visa from Hong Kong.

German law distinguishes freelance work (liberal professions such as artists, writers, translators, some consultants) from a trade or business.

The residence permit (§ 21 Residence Act)

• Business (§ 21 (1)): economic interest or regional need, positive effects on the economy and secured financing. The authority looks at the viability of the idea, your experience, capital and effect on jobs and innovation.
• Freelance (§ 21 (5)): a permit “may” be granted without the conditions of (1); a required licence to practise must be granted or promised.
• After a German degree (§ 21 (2a)): a graduate “should” get the permit if the activity relates to the studies.
• Over 45: adequate pension provision (§ 21 (3)).
• Business founders can get a settlement permit after 3 years under conditions (§ 21 (4)); freelancers follow the general rules (§ 9).

Source: § 21 Residence Act. From Hong Kong you apply for the national visa first; see Visa and consulate. The Consulate's self-employed and freelancer checklist lists the documents. Commonly asked for: business plan, financing plan, CV, proof of qualification, client letters or contracts, health insurance; we did not check the checklist line by line.

Taxes and registration (outline)

• Register with the tax office (Finanzamt) via ELSTER; freelancers do not register a trade, traders do. Which applies to you is decided by the tax office.
• Your Hong Kong tax and MPF position changes when you leave: Taxes and MPF.

Artists: Künstlersozialkasse (KSK)

Self-employed artists and publicists can join the KSK, which pays about half of the contributions to statutory health, care and pension insurance (kuenstlersozialkasse.de). Eligibility details for newcomers were not checked here.

Health insurance is mandatory; see Social security and health.