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Hiring in Germany involves several key considerations:
- Employee vs. Contractor: Strict laws ("Scheinselbständigkeit") differentiate freelance vs. full-time. Misclassification risks high penalties.
- Social Security: You must withhold contributions for health, nursing care, pension, and unemployment insurance (approx 20-21% employer share).
Recommendation: Use our Employer of Record (EOR) service to bypass entity setup requirements.
