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rtsmboy wrote:

-> Is that possible to leave my current job and turn into a freelancer? What are the downsides?

Yes, that is possible.
The downsides are the formal requirements (Unless you are an expert in these yourself, you basically need to hire professionals for business registrations, accounting, tax reporting, etc.) and the fact that you will have to work more and face higher risks (e.g. of earning less if business declines).

rtsmboy wrote:

-> if the above answer is Yes, I'm considering to have my Registration inside Germany and start traveling the world which was always my dream. This means I'm not going to be inside of Germany (or EU nations generally) not more than few weeks every 3-4 months for example. If I pay all of my taxes and pension contributions, is that explicitly important that I have to be physically inside of Germany?

As Tom already wrote, you cannot work elsewhere with your German work permit (a Blue Card can be converted to other EU countries, but currently yours is valid for work in Germany only).
Wherever you are, you always need to register, have a legal status and - last not least - contribute fairly to the host society by paying taxes and other dues. Everything else is not only illegal, but also morally questionable. Being a "digital nomad", which seems what you are dreaming of, is not possible without cheating on these (plus facing the risk of being found and penalized, rightly so!).

rtsmboy wrote:

-> If the above answer is Yes, I'm considering to get my permanent residency after 21 months with a B1 german certificate considering I started to learn germany from the time I was younger. If I pay my taxes as a freelancer over the next 11 months (I've already paid taxes, pension, health insurance for 10 months), Can I still apply for a PR or not?

You can only be registered in Germany if you have a place to live here. (That you may hardly ever do so is immaterial.) Thus you need to keep your (rental or bought) apartment. This seems to me a big effort (and expense), just for continued residency in a high-tax country.
German "Permanent residency" (I assume you mean "Aufenthaltserlaubnis" rather than "Niederlassungserlaubnis") expires if you leave the country for more than 6 months (not a year, as Tom wrote above), unless you make prior arrangements with the Ausländeramt.

beppi wrote:

Wow, things are even more complicated than I thought.
Thanks, Tom, for your efforts clarifying this. I stand corrected!
But there are even more exceptions to what you wrote: My wife has a Niederlassungserlaubnis and that did not expire desipe being five years abroad (non-EU), just because she remained married to me (German).

I think the reason she retained the Niederlassungserlaubnis was probably not because of the marriage but because she did not apply for social assistance or unemployment. With the limited and unlimited residencies they basically expire automatically after the time limits abroad unless one has gotten special permission. Despite the tone of the site’s wording, the Niederlassungserlaubnis seems to work the other way around. It can be deemed invalid if one leaves for too long AND has shown inadequate income. But even someone who had a couple of bad years and didn’t earn much – yet didn’t apply for any kind of government assistance is not really in jeopardy of losing the permit. This reflects the logical desire of the government not to let foreigners unnecessarily benefit off of the system.

Yet, one can qualify for assistance if needed, and get it, just never leave Germany for too long. The solution to such risk is to eventually get citizenship. But this can also be denied if one has gotten social assistance. I was surprised to hear of this when I applied for citizenship a year ago. Someone claimed that it was only a problem if one currently was getting benefits rather than having had them in the past. I never verified the details on that factor as it didn’t apply to my situation.

What stands out for me in such situations is that while we again and again suggest people look at the German Immigration Authority website BAMF(dot)de; they do not always have all of the details. They even have links to the underlying laws about subjects yet even there one may not find all of the answers. The bottom line is that people should always verify all of the details of their particular case with the proper authorities because sometimes there are some exceptions or details that are simply not publicly available. And while researching information before dealing with officials is recommendable, I get the feeling from many people active at this site that they seems to think one should avoid contact or asking questions of government officials at all cost. They then tend to rely on second hand information and run into problems.