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Updated: February 3, 2026 · Outstaffing / EOR

Outstaffing and payroll in Germany: how to work for a foreign company legally

You have worked for a foreign company for years or run projects for one major client. The work is there, your income is stable, your experience meets German requirements. But as soon as moving to Germany comes up, everything hinges on one question: who will be your employer?

Pain point #1. Your employer won't open a company in Germany

The company values you and wants to keep working together after your move. But registering a GmbH for a single specialist means share capital, accounting, a tax adviser, payroll and months of preparation. For a small team it simply doesn't pay off, and the relocation conversation hits a dead end.

Pain point #2. Invoices instead of an employment contract

You work as a freelancer or contractor and invoice one client. For a German visa, renting a flat or opening a bank account, that's a weak position: no employment contract, no regular salary, no social insurance. And if the work effectively looks like employment — one client, fixed hours, tasks from a manager — Germany sees a risk of bogus self-employment (Scheinselbstständigkeit) with back payments of contributions.

Pain point #3. Moving with family requires a clear status

An EU Blue Card or work visa requires a clear employer, role, place of work and salary. For your family, health insurance, pension contributions and proven income matter. "I work remotely for a company in a third country" is not an answer that's easy to explain to the consulate and the Ausländerbehörde.

If you recognise yourself in at least one of these, consider outstaffing, also known as the Employer of Record (EOR) model.

The solution: the Employer of Record model

The EOR provider becomes your official employer in Germany. The foreign company keeps the specialist and manages the work, while the German provider takes over the employment relationship and local payroll.

The "company — EOR — specialist" arrangement works like this:

• The foreign company defines the role, tasks and budget and signs a service agreement with the EOR provider.
• The EOR provider signs a German employment contract (Arbeitsvertrag) with you, pays your salary, withholds wage tax (Lohnsteuer) and pays social security contributions.
• The specialist works from Germany as an employee and uses the contract for a suitable visa route, such as the EU Blue Card or a work visa.

As a result, the company doesn't need a legal entity in Germany, you get an official German employment contract, and the provider handles payroll and employment-law compliance.

Who EOR suits

• IT freelancers whose main foreign client is ready to switch from paying invoices to a contract with a German EOR provider.
• Employees of foreign companies, if the employer wants to continue after the move without opening an entity in Germany.
• Business owners and co-founders, if the company has real operations, can fund German payroll and the owner's role is a genuine employment function.
• Contractors with one client, if the work already resembles employment and both sides want to reduce the Scheinselbstständigkeit risk.
• Specialists in Serbia, Georgia and other countries who already have work and income and see Germany as the next step.
• EU Blue Card and work visa candidates, if education, experience, role and salary meet the requirements.
• Specialists moving with their family who need an official contract, regular salary and social insurance.
• Companies with distributed teams, if an employee wants to work from Germany and a local entity isn't worthwhile yet.

Who is responsible for what

The division of responsibility should be visible not only in contracts but in day-to-day work:

• The client company funds the arrangement and sets business tasks.
• The EOR provider is the contractual employer: salary, taxes, social insurance, HR paperwork, termination and compliance.
• The specialist does the agreed work, reports changes and complies with the residence permit and employment contract.

The Ausländerbehörde and the consulate look at five things: a specific employer, place of work, role, salary and actual employment. They must match in the contract, the visa application and in reality.

What it costs: a €55,000 example

Calculation for Berlin in 2026: gross salary, employer contributions and the EOR provider's fee.

• Employee net salary: tax class I — €2,854.08 per month, class III — €3,209.08 per month.
• One-time setup fee: €1,500. Visa costs are calculated separately.
• Year-one budget: €79,219; from year two — €77,719.

Figures are indicative: the result depends on salary, tax class, insurance, city and the provider's pricing.

What to check before signing

• Whether salary and role fit your visa route: the EU Blue Card has minimum salary thresholds that change every year.
• Whether the provider holds a temporary agency work licence (Arbeitnehmerüberlassung) if you effectively work for the foreign company. This affects how the model is set up and for how long it is permitted.
• Whether the data match in the employment contract, the Erklärung zum Beschäftigungsverhältnis and the visa application.
• Who pays for the visa, diploma recognition, relocation and a possible termination of the contract.

Download the free guide

All diagrams, candidate profiles, the division of roles, the full budget and a pre-signing checklist are in the RE-LOCATE guide "Outstaffing: The EOR Model in Germany" (8 pages).

Download the EOR guide for free (PDF) →

Not sure whether EOR is right for you? In a consultation we review your situation with your employer, check the visa basis and calculate how the model affects your net salary and the company's budget.

FAQ

What is an Employer of Record in simple terms?

An EOR provider becomes your official employer in Germany: it signs a German employment contract with you, pays your salary and pays social security contributions. The foreign company keeps the specialist and sets the work tasks. It does not need to open a legal entity in Germany.

Can an EOR contract be used for the EU Blue Card?

A German employment contract from an EOR provider can serve as the basis for an EU Blue Card or a work visa. Your role, education and salary have to meet the requirements: the EU Blue Card has minimum salary thresholds that change every year. The consulate and the Ausländerbehörde decide on the application.

What does EOR cost on a €55,000 salary?

In the Berlin example for 2026 the monthly invoice to the company is €6,476.58, or €77,719 per year. That covers the gross salary, employer social security contributions of €12,519 and the provider's fee of €10,200 per year. In year one a one-time setup fee of €1,500 is added, bringing the budget to €79,219.

What should I check before signing with an EOR provider?

Make sure the salary and role fit your visa route, and that the provider holds a temporary agency work licence (Arbeitnehmerüberlassung) if you effectively work for the foreign company. The data in the employment contract, the Erklärung zum Beschäftigungsverhältnis and the visa application must match. Agree separately who pays for the visa, diploma recognition, relocation and a possible termination.