'Remote work for a foreign company from Germany: taxes, insurance, and

If you live in Germany and work remotely for a company in another country, you generally cannot keep your income “where it’s paid.” For German tax residents, German rules apply: Einkommensteuer, social security, health insurance, and proper registration of your status.

There are two basic scenarios:

Employee of a foreign company — the employment contract remains in effect, but you must arrange for German taxes and Sozialversicherung;
Self-employment or business — you provide services as a Freiberufler or Gewerbe and are personally responsible for registration, taxes, insurance, and bookkeeping.

You can’t base your decision solely on convenience. If the work resembles a standard employment relationship with a single client, a fixed schedule, and reporting to a manager, registering as a freelancer may raise questions about Scheinselbständigkeit.

The main rule for German residents

If you have your Wohnsitz or gewöhnlicher Aufenthalt in Germany, you are generally considered an unlimited taxpayer for Einkommensteuer purposes. This means that both German and foreign income are reported on your German tax return, unless otherwise specified in a specific case.

Double taxation treaties do not eliminate the obligation to file a German tax return. They determine which country has the right to tax a specific income and to what extent. Therefore, the statement “tax has already been withheld abroad” is not sufficient grounds for not reporting anything in Germany.

For complex cases, the following are particularly important:

the country of the employer or client;
the existence of a permanent establishment;
Contract type: employment contract, Dienstvertrag, Werkvertrag, or B2B contract;
the place where the work is actually performed;
the length of your stay in Germany and the other country;
citizenship and residence permit;
A applicable Doppelbesteuerungsabkommen.

Scenario 1: You remain an employee of the foreign company

If the foreign company remains your employer, you’ll need to address two key areas in Germany: payroll taxes and social security contributions. In practice, this is often more complicated than it seems, because the foreign employer may not have a German payroll department.

What you usually need to check:

Is the employer willing to fulfill German employer obligations or to appoint a payroll service (payroll/lohnbüro)?
Does the employer have a Betriebsnummer for reporting to Sozialversicherung?
Who submits the information via the SV-Meldeportal or a payroll system.
How Lohnsteuer is withheld and remitted.
Which Krankenkasse will serve as the Einzugsstelle for social security contributions.
Is accident insurance through a Berufsgenossenschaft (such as VBG) required for certain office and IT activities?

A foreign employer with an employee in Germany may need a German Betriebsnummer. The application is submitted through the Betriebsnummern-Service of the Bundesagentur für Arbeit; it can be filed by the employer or an authorized representative, such as a tax advisor.

In 2026, the following basic rates and thresholds apply to standard employment:

Type of Contribution	Estimated Rates for 2026
Health Insurance	14.6% plus the additional contribution of the specific health insurance provider
Long-Term Care Insurance	3.6% as a base rate; a surcharge applies to childless individuals over 23 years of age
Pension Insurance	18.6%
Unemployment Insurance	2.6%
GKV/PV Contribution Assessment Threshold	69,750 euros per year, 5,812.50 euros per month
Annual income threshold	77,400 euros per year, 6,450 euros per month

In a typical German employment arrangement, the employer pays part of the contributions and the employee pays the rest. With a foreign employer that does not have a German legal entity, the administrative procedures must be agreed upon separately: sometimes this is handled by a payroll provider or consultant, and sometimes the responsibility is technically organized through a representative of the employer.

You shouldn’t transfer random amounts on your own based on “rough estimates.” For Sozialversicherung, it’s important to have the correct Meldungen, Beitragsnachweise, Einzugsstelle, and deadlines.

SV-Meldeportal instead of sv.net

The old sv.net service is no longer in use: it was permanently shut down on June 30, 2024. For electronic submissions to social security, use the SV-Meldeportal or a professional payroll system.

To register on the SV-Meldeportal, you may need:

The employer’s Betriebsnummer;
access via an ELSTER-Unternehmenskonto or another supported registration method;
employer and employee information;
Information about Krankenkasse and Sozialversicherung.

The SV-Meldeportal is not a payroll calculation program. It helps submit reports, but it does not replace the calculation of contributions, taxes, or payroll verification.

Tax ID, Elster, and the Tax Office

For tax purposes, you may need to register with Elster and interact with the Finanzamt. For employers without a physical location in Germany, the Finanzamt Neubrandenburg may be relevant in certain cases, but the specific procedure depends on the employer’s structure and the nature of the work.

As an individual, it’s important not to confuse:

Steueridentifikationsnummer — personal tax identification number;
Steuernummer — tax identification number at the Finanzamt;
Betriebsnummer — the employer’s number for Sozialversicherung;
Unternehmensnummer — the number for accident insurance (Unfallversicherung) or the employers’ liability insurance association (Berufsgenossenschaft).

If the issue involves payroll from a foreign employer, it’s best to check with a tax advisor (Steuerberater) or payroll office (Lohnbüro) in advance. A mistake at the beginning can lead to retroactive tax assessments.

Scenario 2: You work as a Freiberufler or run a Gewerbe

If you are not an employee but provide services under a contract, you generally need to register as self-employed in Germany. There are two possible options:

Freiberufler — self-employed professional, provided the work meets German criteria;
Gewerbe — a commercial activity that requires registration with the Gewerbeamt.

After starting their business, the entrepreneur submits the “Fragebogen zur steuerlichen Erfassung” (tax registration questionnaire) to the Finanzamt via ELSTER. For freelance work (freiberufliche Tätigkeit), there is an obligation to report the start of business within one month. For a business (Gewerbe), a business registration (Gewerbeanmeldung) is usually filed first, after which tax registration also takes place via ELSTER.

Taxes for Self-Employed Individuals

Working independently for clients abroad does not make your income “foreign” in the sense that it is exempt from German taxes. If the work is carried out from Germany, the income is usually reported on your German tax return.

Possible taxes and obligations:

Einkommensteuer — income tax for individuals;
Umsatzsteuer — VAT, unless there is an exemption or the reverse charge mechanism or an international rule applies;
Gewerbesteuer — for businesses (Gewerbe) that exceed the applicable thresholds, depending on the municipality (Gemeinde);
advance payments, if the Finanzamt requires them;
tracking income and expenses, invoices, receipts, and contracts.

For clients within and outside the EU, Umsatzsteuer rules may differ. In B2B services, the place of service provision, VAT ID, reverse charge, and correct invoice wording are often important. This is one of the points that is best checked on a case-by-case basis.

Health Insurance

In Germany, it is mandatory to have health insurance. For people with Wohnsitz in Germany, this is stipulated in VVG §193.

For salaried employees, the choice between GKV and PKV depends, among other things, on the Jahresarbeitsentgeltgrenze. In 2026, the general threshold for mandatory insurance is 77,400 euros per year or 6,450 euros per month. If regular income is below this threshold, the employee generally remains in the mandatory public insurance system, unless there is a specific exception.

For self-employed individuals, it’s important to determine in advance whether you can remain voluntarily enrolled in the GKV or if you must—or wish to—switch to the PKV. Voluntary GKV coverage for entrepreneurs is calculated based on income, but with minimum and maximum thresholds. In 2026, the minimum income threshold for voluntarily insured individuals is set at 1,318.33 euros per month; the upper limit for GKV/PV is 5,812.50 euros per month.

You shouldn’t base your move or business registration on a “scheme” to gain access to the GKV through a short-term job. Access to the GKV depends on your insurance history, age, status, previous insurance system, and the specifics of your individual case.

Pension Contributions for the Self-Employed

Not every self-employed person is required to pay Rentenversicherung, but certain categories of self-employed individuals are mandatorily insured. These may include, for example, teachers, educators, caregivers, artisans, artists, and journalists, as well as individuals who work long-term and primarily for a single client, provided they meet the legal requirements.

The Deutsche Rentenversicherung specifies a rate of 18.6%. For self-employed individuals subject to mandatory contributions, estimated amounts will also apply in 2026, including the Regelbeitrag and halber Regelbeitrag for those just starting out. It’s best to determine whether you’re required to pay based on your actual work arrangement rather than your job title.

If you work almost exclusively for a single client, you should assess the risk of Scheinselbständigkeit and pension obligations before registering. In disputed cases, the Statusfeststellungsverfahren is used.

What happens if you don’t report your income

Undeclared income can lead to back taxes, interest, fines, and, in severe cases, criminal prosecution for tax evasion (Steuerhinterziehung) under §370 of the Abgabenordnung. The risk increases if the income appears in bank accounts, insurance applications, visa documents, mortgage applications, divorce proceedings, alimony payments, or through the exchange of information between countries.

The right strategy is not to wait until the tax authorities ask questions on their own. If you’ve already received income and haven’t reported it, it’s safer to discuss with a tax advisor how to correct the situation properly.

Practical Checklist

Before you start working remotely from Germany, check the following:

where you actually live and whether you are a German tax resident;
an employment contract or self-employment;
Is the foreign employer willing to fulfill German payroll obligations?
Do you need a Betriebsnummer?;
who reports to the Sozialversicherung;
Which health insurance provider (Krankenkasse) will be used;
Do you need to register as a Freiberufler or a Gewerbe?
how Umsatzsteuer applies to your clients;
Is there a risk of Scheinselbständigkeit?;
Does the job affect your visa, Blue Card, student status, or residence permit?

When a Specialist Is Definitely Needed

A tax advisor or specialized payroll specialist is especially important if:

the employer is located outside the EU;
Your salary is already taxed in another country;
you have income in multiple currencies;
you are both an employee and a freelancer;
you have one major client and face the risk of Scheinselbständigkeit;
you need to maintain or obtain GKV coverage;
your income affects your residence permit, permanent residence status, or family benefits;
Past income has not yet been reported.

Conclusion

Remote work for a foreign company from Germany is possible, but it cannot be handled solely according to the employer’s country’s regulations. For Germany, the following factors are important: your actual place of residence and work, the type of contract, your tax return, health insurance (Krankenversicherung), and social insurance (Sozialversicherung).

The safest approach is to first determine your status, then set up your tax and insurance arrangements, and only then sign a long-term work agreement. In cases of uncertainty, seeking advice before starting work is cheaper than correcting mistakes after several months of payments.