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Depends, in Germany chances are that it falls under Scheinselbsttändigkeit (pseudo self-employment) which would be illegal.
by Semaphor 4y ago
Depends, in Germany chances are that it falls under Scheinselbsttändigkeit (pseudo self-employment) which would be illegal.
- bitL 4y agoThat would be if the company were in Germany. But not outside Germany, there the freelancer is classified as "exporter" (both for US and EU clients).
- gingerlime 4y agothe only issue is that you might be liable to pay social insurance (DRV), but only if they can show that you have only one long-term client, and I’m not sure if it applies to foreign clients, especially outside the EU (but it might)
- bitL 4y agoAFAIK it doesn't apply to outside-Germany clients. The freelancer is viewed as exporter and contributes to German export economy. Mind you, a freelancer has no social safety net, no pension, exorbitantly expensive health care (900+ EUR) and no unemployment benefits either.
- gingerlime 4y agoI think that’s why the DRV might step in and force a freelancer to pay into the social security system if they have a single client. If I recall it also applies to foreign clients, but I’m not 100% sure how far it extends. It’s definitely easier to bypass the DRV if your client is not German, but not entirely waterproof as I recall.