Freelancing in Germany

Who this guide is for

• EU citizens and residents of Germany who want to start working for themselves.
• Non-EU nationals who need to know whether their residence permit allows self-employment.
• Employees considering freelance work alongside a job.
• New freelancers who need to understand the tax registration and invoicing basics before their first client.

What you need

• Your residence title, and clarity about whether it permits self-employment.
• A registered German address and your personal tax ID (Steuer-ID).
• A clear description of the service you will provide.
• An ELSTER account for the tax registration questionnaire.
• Health insurance cover as a self-employed person, and a bank account for your business income.

Step-by-step process

1. 01

   Check whether you are allowed to be self-employed

   This is the step people skip. EU, EEA and Swiss citizens enjoy freedom of establishment. For non-EU nationals, self-employment depends on what your residence title says: some permits allow employment only, some allow self-employment explicitly, and some require an application to add it. Students in particular do not automatically have permission to freelance. Read the notes on your electronic residence title, check what your residence permit after arrival allows, and ask your foreigners' authority before you invoice anyone.

2. 02

   Work out whether you are a Freiberufler or a Gewerbe

   German law separates the liberal professions from trades. Freiberufler covers defined categories of independent scientific, artistic, literary, teaching or educational activity — for example doctors, lawyers, architects, engineers, journalists, translators and many designers. Everything else is a Gewerbe, a commercial trade. The distinction determines whether you register a trade, whether you pay trade tax and how much bookkeeping you face. The tax office makes the final classification, not you.

3. 03

   Register a trade at the Gewerbeamt if you are not a Freiberufler

   If your activity is commercial, you register it with the trade office (Gewerbeamt) of your municipality before you start. You receive a trade licence confirmation (Gewerbeanmeldung), and the office usually notifies the tax office and the chamber of commerce. Freiberufler skip this step and go directly to the tax office.

4. 04

   Submit the tax registration questionnaire

   Everyone registers with the responsible tax office (Finanzamt) using the Fragebogen zur steuerlichen Erfassung, submitted electronically through ELSTER, the official tax portal. You describe your activity, estimate your expected turnover and profit, choose whether to use the small-business VAT rule, and give your bank details. Your estimates affect whether the tax office sets advance payments, so be realistic rather than optimistic.

5. 05

   Understand your two tax numbers

   Your Steuer-ID is a lifelong personal tax identification number, issued after you register your address, and it does not change. The Steuernummer is issued by the tax office for your self-employed activity and is the number you use in correspondence about your business. If you invoice clients in other EU countries you may also need a VAT identification number (USt-IdNr.), which is separate again.

6. 06

   Sort out insurance and provisions

   As a self-employed person you have no employer paying half of your health insurance, so you either take voluntary statutory membership or private cover and pay the full contribution. Some professions have compulsory pension arrangements or professional chambers. Budget for income tax, possibly VAT, and quarterly advance payments — the first tax assessment surprises many new freelancers.

7. 07

   Invoice correctly and keep your records

   German invoices must contain defined information: your full name and address, your client's details, your tax number or VAT ID, an invoice number, the date, a description of the service, the net amount, the VAT rate and amount, and a note if you apply the small-business rule. Keep invoices and receipts for the statutory retention period. Clean records make your annual tax return an afternoon rather than a crisis.

Documents checklist

• Residence title showing whether self-employment is permitted
• Registration certificate (Meldebestätigung)
• Personal tax ID (Steuer-ID)
• Completed Fragebogen zur steuerlichen Erfassung submitted via ELSTER
• Trade registration (Gewerbeanmeldung) if your activity is a trade
• Proof of health insurance as a self-employed person
• Qualification documents or professional permits for regulated activities
• Bank details and, where relevant, a separate business account
• Client contracts or letters of intent, especially for a self-employment permit

Common mistakes

• Invoicing before checking whether your residence title allows self-employment.
• Assuming your activity is a liberal profession when the tax office would classify it as a trade.
• Confusing the personal Steuer-ID with the business Steuernummer.
• Choosing the small-business rule without considering client expectations and input VAT.
• Ignoring health insurance and paying arrears later, plus advance tax payments arriving as a surprise.
• Issuing invoices that lack the legally required details.
• Working almost exclusively for one client without considering the disguised-employment risk.

What happens next

• The tax office issues your Steuernummer and, if you request it, a VAT identification number.
• You set up invoicing and bookkeeping and keep records for the statutory retention period.
• You pay income tax, VAT where applicable, and any advance payments the tax office sets.
• You file your annual tax return, usually electronically.
• You report changes — turnover, a new activity, moving city — to the tax office and, if relevant, the foreigners' authority.

How Burokrat helps

Frequently asked questions

Can I freelance in Germany with any residence permit?

No. Self-employment must be permitted by your residence title. Some permits allow it, some allow employment only, and some require you to apply for the addition. Students in particular need explicit permission.

What is the difference between Freiberufler and Gewerbe?

Freiberufler covers defined liberal professions such as medicine, law, engineering, journalism or translation. Everything else is a commercial trade, which must be registered at the trade office and may pay trade tax. The tax office makes the final classification.

What is the Fragebogen zur steuerlichen Erfassung?

The tax registration questionnaire you submit to your tax office through ELSTER when you start self-employed work. It covers your activity, expected turnover and profit, the small-business VAT choice and your bank details.

Is my Steuer-ID the same as my Steuernummer?

No. The Steuer-ID is your lifelong personal tax identification number. The Steuernummer is issued by the tax office for your business activity, and cross-border invoicing may require a separate VAT identification number.

What about health insurance when I am self-employed?

You have no employer share, so you take voluntary statutory membership or private cover and pay the full contribution yourself. Factor it into your rates from the start.

Do I need a tax adviser?

Not legally in every case, but classification, VAT and cross-border invoicing carry real consequences. Burokrat does not give tax advice — for your own figures, work with a Steuerberater.

Official sources

• Make it in Germany: visa for freelance and self-employed work
• Make it in Germany: requirements for setting up a business
• ELSTER: the official German tax portal (tax registration questionnaire)
• § 19 UStG: small-business rule (Kleinunternehmerregelung)
• Existenzgründungsportal of the Federal Ministry for Economic Affairs

Related guides

Browse every guide in the bureaucracy guide hub, or go back to the Burokrat homepage.