Registering as a freelancer in Germany: a practical guide

Are you thinking about setting up your own freelance business in Germany? Whether you’re keen to work independently as a designer, developer, consultant or in another speciality, here’s a straightforward, friendly guide to getting started.

Summary

1. Freelance or self-employed? Understanding the difference
2. Step-by-step: how to register as a freelancer
3. Taxes, accounting, and bookkeeping
4. Health insurance and related obligations
5. Common pitfalls to avoid
6. FAQ
7. Conclusion: the essence of freelancing

Freelance or self-Employed? Understanding the difference

In Germany, “freelance” typically refers to professions based on personal expertise, creativity or academic background. This covers fields like design, journalism, IT, science, education and health. If you work independently, using your skills to provide a personal service or advice, you’re likely to be classified as a freelancer.

On the other hand, if you're running a shop, selling products, or offering traditional trade or craft services, you’ll usually need to register as self-employed and pay business rates. Most freelancers only need to register with the tax office (Finanzamt) and are exempt from trade tax.

Who can become a freelancer?

Not every job qualifies as a freelance profession. It depends on the nature of your work and your professional background. Typically, freelancers are those whose work is listed in German tax law as a “liberal profession”. This normally includes:

• Writers, journalists, translators
• Designers, illustrators, artists
• Engineers, IT professionals, scientists
• Therapists, doctors, midwives
• Consultants, teachers, coaches

You’ll often need to show proof of your qualifications — such as a university degree, diploma, or work portfolio — especially if you’re new to freelancing. Starting part-time is completely allowed. Many people build their freelance career while also holding another job or studying.

Freelancing is not the only path to self-employment! To learn about the other types of business structures, check out our article Business structures in Germany: your guide to making the right choice.

How to register as a freelancer: step by step

Define your area of work: be specific about the services you offer. Instead of just saying “consultant”, clarify with something like “digital marketing strategy for small businesses”.

Gather your supporting documents: think about what may be needed: degree certificates, professional evidence, or relevant references. It’s worth having these on hand in case the tax office asks.

Register with the tax office (Finanzamt): you must fill out the “Fragebogen zur steuerlichen Erfassung” (Tax registration questionnaire)—the easiest way is online via ELSTER, the official government portal. You’ll provide details of your freelance activity, your anticipated income, and bank details.

Receive your tax number: once everything’s been checked, your new tax number will arrive by post. That means you’re officially in business and can legally issue invoices.

If you also plan to sell goods or run your own online shop, you may need a business licence on top of your freelance status. When in doubt, check with your local tax office for clarity.

Taxes, accounting and bookkeeping

As a freelancer, you’ll pay income tax on your profits—meaning what’s left after your business expenses. Depending on your turnover, you may also need to deal with VAT, unless you qualify for the small business scheme (“Kleinunternehmerregelung”), which exempts you from charging VAT if your annual earnings are under €22,000.

For bookkeeping, simple income and expenditure records are enough. A spreadsheet or accounting app will help you stay organised and meet legal requirements. You don’t need to draw up a balance sheet.

Health insurance and related obligations: what you need to know

Health insurance: always mandatory

You are responsible for arranging your own health insurance, either through a statutory health insurer or a private provider.

Pension insurance: depends on your profession

It is compulsory only for certain professions—such as teachers, midwives, or artists. Others may choose to contribute voluntarily to the public pension system or opt for private retirement plans.

What about the artists’ social insurance fund?

If you work in creative or journalistic fields, you might qualify for coverage through the Artists’ Social Insurance Fund (KSK), which covers part of your social security contributions—much like an employer would.

Freelancing on the side? Absolutely

You’re welcome to kick things off on the side, combining self-employment with a regular job or study. Just make sure your main employer is informed if that’s required by your contract and that you keep your freelance finances in order.

Avoiding common pitfalls

Here are a few things to keep in mind from the very beginning:

• Register as soon as you start taking on freelance work—ideally within four weeks.
• Keep all your supporting documents and certificates to hand in case the tax office wants proof.
• Monitor your income for VAT purposes to make sure you don’t exceed the small business threshold.
• Don’t overlook mandatory insurances—health cover is essential.

Frequently asked questions

How long does registration take?

Usually no more than three weeks, but it depends on your local tax office.

Does it cost anything to register?

Registration itself is free, though you may wish to invest in accounting software or professional advice.

Can I backdate my registration?

This may be possible if you’ve been active already—contact your tax office for guidance.

What if I need to stop freelancing?

Simply inform the tax office in writing if you wish to end your freelance work.

Conclusion: the essence of freelancing

Freelancers in Germany enjoy a flexible and relatively straightforward form of self-employment based on specialised skills and independent work. They are exempt from trade tax, benefit from simplified bookkeeping, and often have the option to start their freelance career part-time.

At the same time, they bear full responsibility for their work and must correctly declare their income. Registration is done directly with the tax office, without the need for a trade licence, and specific requirements apply regarding qualifications and professional status. With careful planning, good organisation, and compliance with legal requirements, freelancing offers an attractive opportunity for independent and self-directed work across a variety of fields.

By following these fundamental principles, you’ll be well positioned for a successful start as a freelancer.