Dear All,

I have recently got NE and now thinking of working as a freelancer. For that purpose I would like to know what kind of taxes and insurance and etc ... I will have to pay.
For e.g if I earn 10000 euro gross per month what amount should I deduct for all the money which I will have to pay and aproximately what will be the net income?

Looking forward for early response,

Best Regards,
-inditrozen

That depends on your Betriebsausgaben. you can calculate neither profit nor income tax without knowing how big your business expenses will be.

About insurance: you don't have to have any if you are freelancer.

That means I will have to pay my income tax at the end of the year on (income - business expenses). Right?

I did not get the answer regarding health insurance, isn't it mandatory for me in Germany to have health isurance or it is not in case of free lancing? Also at the moment I have public health isurance where I pay around 14 %, how this will work out on what basis public insurance company will calculate my monthly premium if I am freelancer?

And what about social security, would I have to pay that as well? What will happen to social security I have paid so far?

Looking forward for answers.

Thanks in advance

Regards,

i am also a freelancer. i dont pay Pension insurance or unemployment insurance.
i do have private health insurance. but i dont know whether health insurance is mandatory for freelancers.

Regarding income tax, you have to approach a tax consulant. Depending on your estimates of income & business expenses for the whole year, you will have to have pay Quarterly Income tax. This will vary if you are married and if you have children.

Hi
Regarding the health insurance, you are not obligated to take one if you are a freelancer.

As an employee(Angestellte), you are also not obligated to take a health insurance, provided that you earn 45K or more annually.

But it is not a wise thing to live in Germany without a health insurance, because in case you need an in-patient treatment or some other emergency health case arises which may need a quick doctor treatment then you may end up paying more than 2-3 years of insurance contribution(maybe even more) at once and you may really regret not having a health insurance.

If you are young, healthy and like to gamble ;) then you may opt for not-having a health insurance.

Regards,

Lacrima

"That means I will have to pay my income tax at the end of the year on (income - business expenses). Right?"

tax officials will send you one formular after you will tell them that you have started to work as a freelancer (you have to do that). if you will give them info about your "Voraussichtliche Einkünfte" in that formular, they will happily inform you that you have to pay income tax during the year "im Voraus" (2005: 10.03, 10.06, 12.09, 12.12) and will calculate amounts of those "Vorauszahlungen" for you based on your information.

i wrote in that formular that i cannot give any estimates. Therefore it seems that i will pay ESt for year 2005 approx. in July 2006 (the Einkommensteuererklärung will be submitted on the last day - 31.05.2005 )

"isn't it mandatory for me in Germany to have health isurance or it is not in case of free lancing?"

No it isn't. but be ready to prove that it's freelancing and not a "Scheinselbständigkeit" - your "gesetzliche Krankenkasse" will not want to loose your money ;)

"And what about social security, would I have to pay that as well? What will happen to social security I have paid so far?"

you don't have to pay it in case of freelancing. what will happen to social security (i guess you mean "Rentenversicherung" here) you have paid so far? wait for 2 years and submit "Antrag auf Beitragserstattung" - you will get your money back.

Answers on these and any many other questions:

http://www.e-lancer-nrw.de/ratgeber/index.php

Good luck!

Thank you all it was a great help..