How to go from Employee to Freelancer in Germany #

If you plan to quit your job and start working as a freelancer or business owner in Germany, you may need to change your residence permit. Most employees switching to freelance work must apply for a freelance visa (Freiberufler visa) or a self-employment residence permit.

This guide explains, step by step, how to transition from being an employee to becoming a freelancer in Germany based on real-world experience.

Start your side Business before you quit #

If possible, start your freelance business while you’re still employed.

This gives you time to:

• Register your business
• Find your first clients
• Prepare financially for the transition

You’ll need at least a few weeks to handle business registration and your freelance visa application.

Step 1: Check if your Residence Permit allows Self-Employment #

If you need a residence permit to live in Germany, check whether it allows you to work as a freelancer. Look at the Zusatzblatt (supplementary sheet) that came with your residence permit, it lists your employment permissions.

Types of Residence Permits for Self-Employment #

• Some permits allow part-time self-employment but you must keep your main job as your primary income source.
• To become fully self-employed, you’ll likely need to apply for a freelance visa.

Step 2: Check if your job allows Freelancing on the side #

In most cases, you don’t need your employer’s permission to run a side business but there are exceptions:

• Judges, Soldiers or Civil servants must get official permission before freelancing.
• Some employment contracts specifically restrict or forbid side work. Always review your contract.

If freelancing is allowed, start your side business while you’re still employed, it will make the visa transition much smoother.

Step 3: Apply for the Freelance Visa #

Once you’re ready, apply for the Freiberufler visa (freelance residence permit). The process can take several weeks, so plan ahead. When approved, your freelance visa replaces your current residence permit. You can’t hold both at the same time.

Important: If your new visa only allows freelance work, you must quit your job once the freelance permit becomes active.

Checkout our guide how to get freelancer visa

Step 4: Inform your health insurance provider(AOK, TK or others) #

When you switch from employee to freelancer, your health insurance situation changes significantly.

How it works: #

• As an employee, your employer pays half of your health insurance.
• As a freelancer, you pay the full amount yourself roughly double the cost.

You’ll also start paying by bank transfer each month, and your contributions will be based on your estimated income (adjusted annually when you report your real earnings).

Switching to Private Health Insurance #

You can choose to switch from public (gesetzliche) to private (private Krankenversicherung) health insurance. Private plans can be cheaper and more flexible for many freelancers, depending on income and age.