Reason for Residence: Freelancing

Before going into details, we need to clarify the meaning of “freelancing” first! Generically, it is pretty much synonymous with "self-employment" by individuals running an unincorporated business. This is already a very good start, and you are almost there! German law has its specialties... In legalese, we consider freelancers what you would call "white collar" professionals. The "official" translation of the Residence Act translates the German word "Freiberuf" like "self-employment". A good explanation, isn’t it? Go ahead and read §21 V AufenthG. 

Now, my head is spinning! What is a freelancer?

Okay, okay. A freelancer, service provider is actually defined in §18 EStG. It's about service providers as

• independently practiced scientific,
• artistic,
• literary,
• teaching or educational activities,
• physicians,
• dentists,
• veterinarians,
• lawyers,
• notaries,
• patent attorneys,
• surveyors,
• civil engineers,
• architects,
• commercial chemists,
• auditors,
• tax advisors,
• consulting economists and business economists,
• sworn auditors,
• tax agents,
• alternative practitioners,
• dentists,
• physiotherapists,
• tax consultants,
• tax advisors,
• alternative practitioners,
• medical practitioners,
• physiotherapists
  and
• similar professions.

I want to start a business in Germany as a freelancer, and while doing so, I want to live here, too. How can I do that?

Since the amendment in 2012, the law has sought to promote business immigration to meet the needs of the German economy. The latest changes in 2025 have brought no difference. Pursuant to §21 V AufenthG, you need to show:

• the economic interest or a regional need for your line of business,
• positive effects of your business on the German economy,
  and
• the ability to secure the financing of your project through equity or a credit promise of a foreign or domestic bank.
  §§§§

This sounds just like your description of the investor visa. I am not an investor and only run my personal business. What is the difference?

Well, yes, at first glance it sounds the same. However, the requirements for freelancers are less strict. They take into consideration that you are not a Tata or Rockefeller...
§§§

Now, how much money do I really need?

Well, the law does not answer this question. Let us think practically, you have to have funds to open and run your business, as well as funds for your private livelihood for one year. If you want numbers, we can hardly give you any. The amount of money for your line of business (= “investment capital”) depends on your setup (personal vs. corporate). Your private livelihood depends on your marital status and whether you have children. As an individual, you can consider roughly 1100€/month. Immigration expects that you bring the financing for the first year – for business as well as private. 
§§

The thing is, I personally do not have so much money. Will this ruin my chances?

Yes and no. You have to have either equity, a bank loan, or customers lined up eager to hire you. If you lack own money and need a loan from a bank, any bank will do—be it German or a foreign one.
§§

Hey, wait a moment, you mentioned “customers lined to up eager to hire me”! What do mean? Can I really just say that I have a hoard of clients constantly knocking on my door wanting me to work for them? Sounds simple.

Well, it is almost that simple. You need to produce “Letters of Interest” from or contracts with these potential clients to prove this. Don’t forget, German authorities want it all proven. Also, keep in mind, the overall maxim for German business immigration: you have to bring momentum to the German economy! How does it relate to your customers? Simple! They have to be based in Germany. 
§

What about my existing clients back home? How do they count? I guess when I make it at home, that will be good enough for here, or?

Well, sorry, your customers back home are actually almost purely negligible! Please recall, what is the one of the most important requirements for business immigration? German economy! Your customer base back home does not support Germany. Period! Sorry!!
Okay, okay, they can be a bit interesting when you lack "investment capital" to get started over here and use them as your financial basis. Instead of savings, you have foreign clients. You can also convey with a standing client base at home that you want to internationalize your career in Germany and you are experienced in running a business. German authorities love experienced businesspersons.
§§§

What is interesting for German economy?

Generally, everything that will bring momentum to Germany is welcome. IT, export, and enhancing business relationships abroad will typically always work. What German authorities typically do not want are businesses already existing in abundance or only minor retail businesses.

What is not wanted in Germany?

German authorities understand as economically uninteresting any such businesses that are:

1. 1. purely oriented on private consumption,
   2. beauty shops of any kind,
   3. restaurants/bistros/cafes,
   4. etc.
      §

Sounds thrilling! Yet, I am so sad, but I have been running a beauty shop in my home country for decades, becoming more elderly, my kids are in Germany, I want to follow them so that they can take care of me when I need their help. Is there no workaround for this private consumption business of mine?

Oh, indeed there is! You will have to take over an existing business that is either failing, only surviving, or the owner is retiring. When doing so, you will have to communicate to the authorities that you will be turning this business around from a loss-making one to a profitable one. Yes, you will have to invest a significant amount and at least keep the existing employees – if not even increase the number. 
§§

How will they test the workability?

You will have to hand in a business description. Based upon that description, the authorities will test your case. This description can be just a few page long story on what you want to do and how you will make ends meet financially. They will test your idea based upon:

• your experience/knowledge/training in your field,
• a general need for your line of business,
• previous success,
• first clients lined up,
  §§§§

I’m a 45-year-old artist with 20 years of professional experience. I heard that I need old-age precautions. Um, what is that? What constitutes as a reasonable old-age precaution?

You need to show a private or public pension plan that will "guarantee" your financial sustainability when you turn 67. Private assets are also feasible. You need to show that you will have around 171 k€ p.a.
§

I guess I will have to go to immigration every year to get my permit renewed. How long do I get from the beginning?

You will get up to two years from the start. After this period, you will have to show the authorities that you are making money. The practical reason is that the authorities want to verify your numbers at least once before granting you permanent residency.
§

I'm worried about my son. He just graduated and got his Masters. Since he has no business experience whatsoever, does that mean he will have no chance at all?

Relax. If a graduate has no experience, they will not instantly kick him out. He will get his chance when he has clients lined up and waiting, so he can “finally” serve them. 😉 Everybody knows and understands that graduates, as well as start-ups, generally lack a long-standing business record.
§

I graduated here and got my German diploma. How does that help me?

First of all, congratulations on your success! It does significantly help you. The authorities must exercise their discretion to grant you the permit. This might sound complicated. Normally, the authorities search for loopholes in the application to deny it. Graduates of German universities are, by all reasonable means, to be accepted with their planned business ventures. So, if your business idea is only "so-so", you are supposed to get the permit. In that case, if you have no idea, no funds, no nothing but the pure wish to remain, then do not even expect approval. 
§§§

But what if my plan fails? Will they kick me out immediately?

Relax. Plans can change – for good or for worse. Lastly, when the extension is due, you will have to show, at a minimum, that you break even and have sufficient private assets to finance yourself for another year, despite your business losses. However, do not reckon that the authorities will be very happy with such "failure". If you cannot explain your negative situation and convince them of a prosperous future, you will have to expect that they might decline the second extension. It is a truism that business income is not always stable; you have already invested a lot and worked hard. You are generally entitled to at least one renewal.
§§§

Next Steps for your Support

Now, let us find out how far your dream of freelancing can come true in Germany. For this, we ask you to take the "business quiz", where we will ask some questions that you may diligently answer. We will then fine-tune your line of business or approach so you can succeed in Germany. 

Business Quiz