How to become a freelancer or self-employed in Germany

Freelancer (Freiberufler) or trade business (Gewerbe)?

The German Income Tax Act (§ 18 EStG) lists the liberal professions (freie Berufe): for example engineers, architects, journalists, interpreters, translators, doctors and tax advisors, as well as self-employed scientific, artistic, literary, teaching and educational work. Many software developers and IT consultants also count as freelancers (Freiberufler).

Freelancers do not register a trade, pay no trade tax (Gewerbesteuer) and are not members of the Chamber of Commerce (IHK). If you trade goods, act as an agent or carry out any other commercial activity, you register a trade (Gewerbe) at the trade office (Gewerbeamt). If in doubt, the tax office (Finanzamt) decides.

First steps to register as self-employed in Germany

You do not need a notary or start-up capital. As a sole trader (Einzelunternehmer) these are the main steps:

• Register a trade (Gewerbeanmeldung) at your town’s trade office (Gewerbeamt) – only if you are not a freelancer (Freiberufler).
• Send the tax registration form (Fragebogen zur steuerlichen Erfassung) to the tax office via Mein ELSTER within one month of starting.
• Receive your tax number (Steuernummer) from the tax office; it must appear on every invoice.
• If needed, apply for a VAT ID (Umsatzsteuer-Identifikationsnummer, USt-IdNr.) – required for clients in other EU countries.
• Sort out health insurance and check whether you must pay into the state pension scheme (e.g. teachers, midwives).
• A separate business bank account is not mandatory for sole traders, but it keeps private and business money apart.

Kleinunternehmer rule or charging VAT?

As a small business (Kleinunternehmer, § 19 UStG) you do not charge VAT (Umsatzsteuer) and do not file advance VAT returns. Since 2025: your turnover in the previous year may be at most €25,000 and in the current year at most €100,000. Once you exceed €100,000, you are liable for VAT from that turnover onwards.

If you charge VAT, you usually add 19 % (or 7 %) to your invoices, but you can reclaim the input VAT (Vorsteuer) on your expenses from the tax office. This pays off especially if your clients are businesses or you invest a lot at the start. More on this under VAT return (Umsatzsteuer-Voranmeldung).

Your ongoing obligations

Once you have started, recurring tasks come up every year. You file most of them electronically via ELSTER:

• Write invoices with all mandatory details and a sequential number – and from 2027/2028 as an e-invoice (E-Rechnung).
• Collect receipts and keep them for ten years (GoBD).
• Advance VAT return (Umsatzsteuer-Voranmeldung) monthly or quarterly, unless you are a Kleinunternehmer.
• Calculate your profit with the profit statement (Einnahmenüberschussrechnung, EÜR) and file it with your income tax return.
• Trade tax return (Gewerbesteuererklärung), if you run a trade business and your profit exceeds the allowance of €24,500.

Self-employed in Germany as a foreigner

EU citizens can become self-employed in Germany without any special permit. Without EU citizenship you need a residence permit (Aufenthaltstitel) that allows self-employment, for example under § 21 AufenthG; the immigration office (Ausländerbehörde) is responsible.

The tax office’s forms only exist in German. KontoVexa shows you the official terms and explains them in nine languages, so you understand what you are filing.

Frequently asked questions