Contracting in Germany in 2026: The Scheinselbstandigkeit Trap and How to Avoid It
Germany has some of Europe's strictest rules around self-employment, and the consequences of falling foul of them are severe - retroactive social security contributions dating back several years, plus interest and penalties. For IT contractors working with or for German clients, understanding Scheinselbstandigkeit (bogus self-employment) and how to structure arrangements compliantly is essential.