Self-employed computer programmer

Hello,

I plan to move to Germany next year and I am trying to calculate the costs of being a self-employed computer programmer there. I am a Polish citizen so I do not need any permits.

I work on a contract for a Malaysian company, they pay me, let's say, 2500 EUR a month (actually they pay in dollars, but due to exchange rate the EUR amount changes). Sometimes I do some freelance jobs, but my main income source is this one contract.

How much social/health stuff must I pay in Germany? I heard it's about 40%

How much income tax must I pay? I heard it's up to 40% as well.

Can someone do some sample math for me please? It's very hard to find some reliable information.

Thank you very much in advance.

Hi jaworskimatt!

Welcome to Expat.com ;)

Armand

Things are more complicated for a self-employed than for employees. If you don't speak German, get a good tax consultant and accountant to set things up!

The actual tax rate depends on many factors. If you are single and earn EUR2500/month, you'd pay around 16% tax.

You need (compulsory) health insurance, which costs about EUR600/month (for employees, it's usually lower and the company pays half of it). All other social security is optional for self-employed.