Pros and Cons of Being a Remote Employee in Germany

Remote work in Germany has grown in popularity in recent years in the job market among freelancers, the self-employed, and workers. A growing number of employees are all in to work remotely and enjoy a flexible lifestyle. Particularly many international company workers now work remotely, giving them the freedom to reside anywhere they wish. Freelancing is the most common option for working as a remote employee in Germany. IT, writing, education, content production, content management, representatives of customer service, virtual assistants, translators, instructors, and other sectors are among the most popular for remote employment in Germany.

Pros of being a remote employee in Germany: 

1. Constant supply of potential clients:

The economy of Germany is stable, and it is expected to remain so for the foreseeable future. Hamburg and Berlin, for example, both have thriving startup scenes. Traditional vehicle businesses are well-known in Frankfurt, Munich, and Stuttgart. The media and publishing industries are well represented in North Rhine Westphalia’s larger cities like Düsseldorf and Cologne. Between the cities indicated above and the rest of the nation, Germany offers a plethora of large to mid-sized industries. Germany actively promotes entrepreneurship, therefore it should come as no surprise that the freelance economy is expanding.

2. Remote Employees have High earning potential:

Germany has one of the highest average incomes in the world because of a strong GDP. Paid employees receive a respectable monthly salary as well as other benefits. It is generally true that freelancers have the freedom to set their own rates, and that clients in Germany may be willing to pay higher prices due to the higher costs of doing business in the country. However, it is important for freelancers to carefully consider their pricing strategies. In Germany, freelancers are regarded as highly qualified specialists in their specialities. Customers are aware of this and regard them as subject-matter experts who can help them with their business difficulties rather than simply as subcontractors for the outsourcing of time-consuming, monotonous activities. 

3. Rewarding tax policies:

Although Europe is known for having high taxes, being a remote employee in Germany gives you access to a number of tax breaks. There are some items that you may simply deduct as company expenses to lower your taxable income. Some of these company expenses may include home office expenses, Travel and transportation, supplies and equipment, Insurance and professional fees.

4. Digital nomad friendly:

Germany is perfectly positioned in the West of Europe. It is not far from a number of fantastic cities, like Amsterdam, Paris, Vienna, Lisbon, Barcelona, and a handful of others. Any digital nomad who wishes to see different European cultures can start their journey as a remote employee. You could support your digital nomad lifestyle in one of Europe’s most ideal locations as long as you have enough remote jobs lined up.

5. Financial support during national emergencies:

Although remote employee in Germany is not eligible for the social benefits system there, they’ll still qualify for financial assistance in times of financial hardship. An example of sorts can be the time when the Federal Ministry of Finance, economics and technology designed several comprehensive measures to keep freelancers, employees and companies away from getting sucked into the hole of bankruptcy.  

Cons of being a remote employee in Germany: 

1. Expensive health insurance:

In Germany, contractors are required to get health insurance. It gets pretty hefty on the pocket. There isn’t a way to avoid it. You must pay at least 14% of your gross salary for health insurance if you are a member of a public health insurance company. This monthly charge rises in line with your salary. We all have to admit that seeing so much of your money goes into insurance hurts especially if you are well and only see a doctor once per year. This is one aspect of the freelancing tale that bothers everyone when they take a glance at their bank balance. Being a remote employee in Germany has a lot of advantages but it comes with its drawbacks as well. However, health insurance can still be deducted as a company expenditure, so there’s that.

2. Remote Employees have a Complicated tax system:

Any native would tell you that the German tax system is quite complex. It’s even more difficult for us foreigners because we have to learn tax terminology in German. Certain processes and restrictions, such as the quarterly tax prepayment system and monthly VAT registrations, are difficult for some people to grasp. Now, you can consult with a tax advisor. It will cost you a lot of money, but they can save you from future Finanzamt troubles and a lot of hassles.

3. Highly Competitive for foreigners:

A remote worker must outperform both local and other international freelancers. Germany has a significant contractor economy, as was already mentioned. High-calibre independent contractors are in demand. However, it could be challenging to get continuous work if you don’t speak German fluently. You could work as a freelancer in an area (such as IT or software development) where German language proficiency is not necessary, yet daily company operations are conducted in German. It will be difficult to communicate with your customer and their staff if you don’t speak German well. As English-speaking industry associations are still in the minority in Germany, you might also need to restrict your business networking to them.

4. Little to no social security benefits:

Germany’s social security system requires all employed persons to pay into it (Sozialversicherungssystem). This covers things like retirement plans, medical expenses, long-term care, unemployment insurance, and insurance for work-related accidents, among others. As a result, individuals are eligible for a number of state benefits if they require emergency or additional help. If you are a remote employee in Germany (working for a firm in another country), you must make your own arrangements for these perks.

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