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by rad_gruchalski
1554 days ago
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No, they have to pay their own health insurance in Germany and deal with taxes themselves as a self-employed person. Additionally, most likely they have to foot in for pension and a couple of insurances to be on the safe side. Germany is €€€. I’d also recommend getting a Steuerberater. They’ll need it. Mistakes are expensive. And don’t spend any money in the first year. Second year taxation will be 3x the nominal rate: tax for the first year, most likely full prepayment for the second year and quarterly payments of 25% for the following year. Ah, and Gewerbesteuer, unless they qualify as Freiberufler… |
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You will also have to check with the tax authority (Finanzamt) whether you can become a "Freiberufler" (all income taxed as personal income) or whether you need to register a business ("Gewerbetreibender"). Whether or not the Finanzamt accepts your status as a Freiberufler depends on different jurisdictions, there is no uniform decision making in place. Most will grant you the status if you have a university degree in Engineering (or Computer Science). If they decline it, I would recommend to create a limited liability company (GmbH, stay away from UG). In any case, get a tax accountant to assist with this.