Introduction
Embarking on a freelancing career in Germany can be an exciting and rewarding journey, especially in the IT and tech sectors. However, navigating the complexities of self-employment in a foreign country can be challenging — of course as native Germans we know that too. It’s Germany after all.
This comprehensive guide aims to provide you with essential information and practical tips to help you succeed as a freelancer in Germany.
Part 1 will cover the following topics:
- Setting up as a freelancer in Germany
- Building an online presence
- Understanding freelance platforms
- Choosing essential tools for your business
Getting Started
Knowing what to expect when starting your freelancing career in Germany is crucial. Before diving deep into the legal and financial aspects, ask yourself the following core questions:
- What are your motivations for freelancing?
- Do you have the necessary skills and experience?
- Are you prepared for the challenges of self-employment?
Regarding (1), freelancing offers flexibility, autonomy, and the opportunity to work on diverse projects. You can learn a lot and grow your network by working with different clients and industries in a short time, if you’re open to it and capable enough.
Having in-demand skills and experience is essential for attracting clients and delivering high-quality work (2). If you can’t deliver, you won’t get paid. It’s that simple. Most clients will not pay for your learning curve.
Also contracting requires self-discipline, time management, and the ability to handle uncertainty (3). You need to be proactive in finding clients, managing your workload, and planning for the future. If you’re not good at that, you might want to reconsider your career choice.
Setting Up as a Freelancer in Germany
Keep in mind: You don’t have to quit your job to start freelancing. You can start freelancing part-time while maintaining your current job to test the waters and build your client base. But be sure to check your employment contract for any non-compete clauses or conflicts of interest — you don’t want to get sued.
CAUTION
In late 2024 I would highly recommend to find a client first and then quit your job.
It’s a lot easier to find a project when you have a job — especially in Germany, where the tech market is struggling right now. I don’t want to discourage you, if you’re good at what you do, you will find a project. If you’re not, you won’t.
Updating your CV
Before you start freelancing, make sure your CV is up-to-date and tailored to the German project market. Highlight your relevant skills, experience, and achievements in a clear and concise manner.
TIP
Drop ambiguous terms like “team player” or “fast learner”. They don’t mean anything. Show, don’t tell.
A lot of recruiters will not read your CV. They will scan it for six seconds. Make sure they can find what they’re looking for. Think like someone who has to hire you. What would you want to see? Set up some kind of skill matrix and get in all the relevant keywords (rather buzzwords) for your field.
ACTION
- Update your CV with recent projects, skills, and certifications
- Ensure it’s formatted clearly and professionally
- 🌟 Strengthen your profile with recommendations from former clients and colleagues — if you can get them
For reference, you can check out my CV, but keep in mind it’s tailored to my niche and might not be suitable for you.
Building and Online Presence
Many freelance platforms allow you to input your CV directly into their system, increasing your visibility to potential clients.
In Germany the most popular platforms for freelance gigs are:
I’d recommend to start with Freelancermap and freelance.de, as they are the most popular platforms in Germany. Follow up with LinkedIn, as it’s the most popular platform worldwide and generally a good idea to have a profile there.
ACTION
- Create a profile on Freelancermap
- Create a profile on freelance.de
- Update your LinkedIn profile with your latest projects and skills
- 🌟 Deploy a personal website or blog to showcase your work and expertise
Understanding your Market Niche
Now that you’ve set up your online presence, it’s time to identify your market niche. What services do you offer? Who are your target clients? What sets you apart from other freelancers?
Take some time to research the demand for your skills and services in the German market. For starters, check out the latest and most popular freelance research reports, such as:
- Freelancer Kompass 2024
- Freelancing in Europe 2024
- Fachkräfte-Index (Hays)
- Labor market studies by Hays
TIP
Knowledge is power. The more you know about your market niche, the better you can position yourself and attract clients.
Money Matters: Setting your Rates
So, how much should you charge as a freelancer in Germany? Setting your rates can be tricky, as you need to balance your skills, experience, and market demand.
Really consider this factors when setting your rates:
- Your level of expertise and experience
- The complexity and scope of the project
- The market demand for your skills
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Don’t undersell yourself. It’s better to charge a higher rate and negotiate down than to start low and struggle to raise your rates later.
To get an idea of the average rates for freelancers in Germany, check out the latest reports and surveys from freelance platforms and industry associations (see above). You can also ask other freelancers in your network for advice and insights. Get comfortable talking about money. It’s part of the job.
Rates in Tech differ greatly depending on your niche and experience. Cloud & DevOps ranges from 80€ to 120€ per hour, while SEO experts might charge 50€ to 80€ per hour.
On Freelancermap you can search for freelancers in your niche and see what they charge. You will see the average rate for your niche. Take your time and look into the profiles of other freelancers to get an idea of what they offer.
ACTION
- Research the average rates for freelancers in your niche
- Determine your hourly rate based on your skills, experience, and market demand
Time & Material vs. Fixed Price
When it comes to pricing your services, you have two main options: Time & Material or Fixed Price.
Time & Material (Dienstleistungsvertrag):
- You charge an hourly or daily rate
- Clients pay for the time you spend on the project
- Limited by a maximum budget or timeframe
- Suitable for projects with changing requirements or scope
- Used by most enterprise companies in Germany
Fixed Price (Werksvertrag):
- You agree on a fixed price for the entire project
- Clients pay a lump sum for the deliverables
- Suitable for well-defined projects with clear requirements (!)
- Used by smaller companies and startups
TIP
Start with Time & Material contracts to avoid scope creep and ensure you get paid for all the work you do.
Fixed Price contracts can be risky, especially if you’re new to freelancing or working with a new client. Make sure you have a clear project scope, timeline, and deliverables before agreeing to a fixed price.
Also check out this concise blog post by Dave Smyth, which reflects on the pros of day rates.
That’s it for Part 1 of the guide. In Part 2, we’ll cover:
- Essential tools for freelancers
- Managing your finances as a freelancer
- Legal requirements and tax obligations
- Dealing with Recruiters
- Insurance and health coverage for freelancers
- Scheinselbstständigkeit and how to avoid it
Stay tuned for more tips and insights on freelancing in Germany!