It is mandatory to have a health insurance in Germany while you are staying there.
You have two options:
private health insurance, or
public health insurance.
Private health insurance
If you are a young and healthy person with no “negative” health records, you have a good chance to get a private health insurance for about 200 - 250 EUR per month (like Hanse Merkur or Allianz) depending on your age, marital status (with children or without), etc. The rates get usually higher and higher over the years. For older persons it is not easy to change from a private health insurance into a public one.
Public health insurance
The public health insurance starts with the minimal monthly rate. They assume that you are earning, at least, a nominal income of about 2.178,75 EUR (2016) per month, so the calculation of the minimal monthly rate is based on this assumption. It amounts to about 398 EUR (day care insurance included), depending on your choice of a public health insurance company (Technische Krankenkasse, AOK, DAK, etc.). Some of them charge you with additional fees. Most of them have higher fees.
§ 19 UStG Kleinunternehmer / Art. 19 German VAT Act Small Entrepreneur
All businesses are obliged to invoice their clients. If the clients are located in Germany, they will have to be invoiced with VAT. However, the law gives some relief to small businesses with the Art. 19 I UStG (VAT Act).
VAT-exemption for small businesses in Germany
If the business does not make more than 17.500,00 EUR in annual turnover, the entrepreneur can write invoices to German clients without VAT. Instead, into the invoice the following sentence has to be placed:
“Ich bin Kleinunternehmer i. S. d. § 19 I UStG und weise daher keine Umsatzsteuer aus.”
(“I am a small entrepreneur according to the Art. 19 I German VAT Act and, therefore, tax-exempt.”)
Duration of the VAT-exemption for small businesses
First year or business start
If you start a business in Germany in the beginning or in the middle of the year, you must make an estimation of your expectations for the turnover of the whole year. If you expect a turnover of no more than 17.500,00 EUR, you can make use of the Art. 19 I UStG.
MBA for Finance and Financial Services (UK), Steuerfachwirt (GER)