Communication consultant Corey Barber on setting up a freelance business in Germany
With five years of freelancing under her belt, Corey has plenty of experience. Here, she walks us through what went into setting up her business, as well as tips for new and aspiring freelancers.
9 min read
With a bustling economy, strong social safety net, and vibrant creative scene, Germany is an excellent place to live and work. As of late 2023, the country’s population of foreigners had reached close to 14 million.But finding a job in a new country can be difficult, especially if you don’t know the language. Therefore, it’s not uncommon for expats in Germany to pursue freelance careers that offer them the flexibility to travel and work for multiple clients. And yet, with the complex bureaucracy, tax reporting obligations, and income uncertainty, setting up a business in Germany can feel overwhelming for those just getting started. To get some insights into the ins and outs of freelancing in Germany, we spoke to communications consultant Corey Barber. Here, she walks us through how she decided to start freelancing and what went into setting up her business, as well as tips and tricks for new (or aspiring) freelancers.
Let’s start by getting to know you. Can you tell us a bit about yourself?
I'm originally from the U.S, and I moved to Berlin in 2007 looking to do something in the policy field. I’d just graduated from Beloit College, where I studied international relations and modern languages. Later on, I completed a Master of Public Policy with the Hertie School in Berlin. Shortly after that, I landed an internship with Doctors without Borders in their policy campaigning team.As my career progressed, I worked with other humanitarian and human rights organizations, most recently with the European Center for Constitutional and Human Rights. I’ve also worked for some corporations where I gained experience working in communications and PR, which allowed me to eventually start my own business.
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What initially attracted you to Berlin? What are some things that make this city a particularly attractive place for expats?
When I first arrived, I was blown away by how many people my age were here. Not only that, but they were similarly minded — working in activism or the arts. I really liked that the city wasn’t focused on one career or profession — people were able to live more creative lifestyles than was possible in other world capitals like London or New York. Of course, things have changed a lot since 2007. I used to be able to treat myself to a bowl of soup and fresh bread in Prenzlauer Berg for just €2.50. Now you’d probably pay around €9 for that same meal. However, I do think that compared to other European capitals, you can still get a lot more for your money here.
You work as a freelance communications consultant. How long have you been running your business and what types of clients do you work with?
I started freelancing five years ago, and my main focus areas are healthcare and human rights. I work with a variety of clients, mainly nonprofits and other organizations trying to create social change — as well as a few in the private sector.
You’ve worked as an employee as well. What drove you to start freelancing?
Being able to set my own schedule was very appealing. As a freelancer, I’m paid by results. It’s not that I have to be visible for a certain number of hours per day — they care about what I’m producing. I also like having clients in different fields to bring some variety to my work and day. I love discovering new things — if I think a certain topic would be interesting for a particular client, I can propose that to them. All this fits well with my larger goal of lifelong learning. Today, for example, I was researching healthcare laws, transportation details, and writing a newsletter on homelessness in the U.S.
What was the process you went through to set up your business?
There was definitely a lot of learning on the go. I looked at what other freelancers around me were doing, read a lot of books, and did research on how to set up a business in Germany. I thought about what my income goals would be, and how to make that possible. Then, I made a five-year plan and worked back from there. After that, there were plenty of business administration tasks that I needed to tackle, like getting a freelance tax number, setting up a business bank account, and building a website.
Can you talk through some of the disadvantages of being self-employed in Germany?
The most challenging part for many freelancers I know is building up your client base so you have consistent work. One thing I find challenging is the feast-or-famine aspect of freelancing: having lots of projects at the same time and then having fewer.Freelancing also requires a lot of self-motivation. So, if you’re someone who really benefits from deadlines set by other people, freelancing might not be right for you. Lastly, you really have to learn to do everything yourself. You’re your own marketing team, accountant, and business manager determining where your business might grow. It’s an ideal model for someone who likes to learn, multitask, and be creative. If you just want to focus on writing, for example, it might be a rude awakening to have to also deal with all the accounting and growth aspects of running your own business.
What are some strategies you’ve cultivated for managing your finances as a freelancer?
It’s important to understand that what you earn as a freelancer isn’t what you take home. In Germany, freelancers need to pay for their entire health and social insurance contributions (including the half that employers usually cover). So, when I set up my business, I did a lot of work to really understand what I needed to live on, and what the going rates were for my profession. Then, I worked out what I considered a fair rate and didn’t accept anything less. In practical terms, I have some strategies that have really helped me manage my budget. I use a type of accounting software for bookkeeping. I have a business account that’s separate from my personal account, so I can keep all my business expenses in one place. To stay on top of my incomings and outgoings, I set aside 40% of my gross income (minus the 19% VAT) and keep it in a separate tax account. I may not need to pay that whole amount, but it’s good to set it aside so that I don’t spend it. Then 5% goes to business expenses, and the rest (minus my private pension and health insurance costs) is my take-home pay.
Looking at the startup scene in Germany, only around 21% of founders are women. How do you interpret a figure like this?
Yeah — Germany isn’t quite as progressive as I would have expected it to be. I’ve certainly experienced some gender discrimination here, and witnessed it in my professional life. For example, it was very surprising for me as a 20-something in Germany to see what happened to the careers of my female peers who decided to have kids. I saw a lot of women who had been in senior positions returning to jobs in a part-time capacity — with significantly less money and responsibility. For me, feminism is about choice, and they were not given the choice of returning to the position in the same capacity in a way that fit their family goals. Another reason I started freelancing is that I wanted to work with people who respect me and my expertise and the value I contribute. Freelancing, for me, has been a way to really be in control of what I do, how much I work, and who I work for. I think the world at large still has a long way to go in terms of equality where women are on an equal playing field.
What advice do you have for expats in Germany who want to embark on a freelance career or start their own business?
If you’re transitioning from being an employee to being a freelancer, I’d recommend taking it step by step. For example, you could switch to part-time and build up your client base while you still have a stable income. It also helps to have a certain level of seniority before you go out on your own. Having professional experience, being able to call on your network, and benefit from word of mouth can be really helpful. Honestly, it’s also important to be good with money! Or, at least to learn skills to be responsible with it. Germany is known for having a lot of red tape and bureaucracy, but it actually isn’t so difficult to get a freelance tax number, which is what you need to start invoicing clients. After that, you ideally need to set up a website, and tell people you’re freelancing. Don’t just expect people to get in touch with you! Also, think about where you’re going to work — do you want to rent an office or a co-working space, or work from home? Beyond that, it’s good to get familiar with the process of how to set up a business. Talk to other freelancers in your field to get advice. In the past I’ve gone to meetup groups, trade associations, etc. You’ll learn what people are charging and how they get clients. Educate yourself with literature or podcasts on budgeting, negotiating and time management. Think about what your strengths and weaknesses are, what’s going to be hard for you, and how to mitigate it. Then, focus on implementing these new habits and goals. I wish you lots of luck!
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