Before the COVID-19 pandemic, digital nomadism was a privilege among the self-employed and entrepreneurs who have set up a business already or an advantage for freelancers. However, since 2020, the labor market has been readjusted globally. One of the most evident changes we have witnessed is the increase in remote work.
During the strict COVID-19-induced measures, remote work was happening mainly from home. But as the social distancing measures are gradually being withdrawn, remote work is here to stay and may potentially mean working from a place of your choice — as long as it's in agreement with your company's policy.
Germany has always been an attractive destination for digital nomads. Its geographical position in central Europe and innovative growth environment make it a great destination for digital nomads looking for inspiring interactions with entrepreneurs, influencers, and creatives. What attracts digital nomads to Germany are the country's character which brings together high-tech culture, a vibrant start-up scene, a broad range of artists' projects, exciting nightlife, and quaint old-world charm. It, thus, comes as no surprise that Berlin has been featured in Tim Ferris's famous 2007 bestseller, “The 4-Hour Work Week,” as one of the best places for the working nomad lifestyle. The cost of living in some German cities, such as Munich, Frankfurt, and Hamburg, is relatively high, but so is the quality of life. Germany is an international hub and, therefore, an excellent strategic place for freelancing or starting your business. To start working effectively while abroad and being your most productive self, you will need to establish a comfortable working space — or different spaces, for that matter, depending on the mood of the day. Of course, Germany offers many coworking spaces, but there are alternatives to working from home or a paid shared space. For example, you can work from a cozy coffee shop, the local public library, a bookshop's small café, or a museum restaurant. Due to Germany's large popularity among digital nomads, you will quickly find a friendly community of like-minded nomads, either on their way to exploring other neighboring countries or captivated by Germany's modern urban attractions, historical sightings, natural landscapes, and picturesque old towns. Living and working in Germany as a digital nomad will mean that you are either self-employed (Selbstständiger) or a freelancer (Freiberufler). These two work identities cannot be used interchangeably when applying for a German residence permit because different conditions and requirements apply. In principle, getting a residence permit as a freelancer requires less paperwork than applying as a self-employed. In more detail, freelancers who want to live and work in Germany will have to file an application with the following documents: a valid passport, enrolment in a health insurance policy (public or private), German home address registration (Anmeldung), a CV, and a budgeting plan (projected income and expenses). Self-employed residence permit applicants must have all the above documents, in addition to a company profile, funding requirements, revenue forecast, and a business concept describing your business strategies, target audience, and the current environment of the industry you are in. The approval of your application depends on the Federal Employment Agency in Germany. After getting a residence permit, it is essential to register at the Local Registration Office to get a personal tax number. Be careful with the German income taxes, which must be declared through the electronic system called ELektronische STeuerERklärung – ELSTER. Here, you need to fill in your bank details, level of income, and personal details. There are some private pension options for those seeking a more extended residence period and those earning a lot as freelancers. Third-country residents and non-EU and EEA citizens have to apply for a self-employed or freelance residence permit before arriving in Germany, whereas EU-EEA nationals and nationals from the US, Japan, Israel, Australia, Canada, South Korea, and New Zealand can apply directly from Germany but no later than 90 days from their arrival.