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. What does it mean to work as a freelancer?
2. Requirements for registering as a freelancer
3. Step-by-step: how to register as a freelancer
4. Bookkeeping & taxes: what to expect
5. Health insurance and more: what you need to know
6. Common pitfalls to avoid
7. Conclusion: the essence of freelancing
8. FAQ

What does it mean to work as a freelancer?

Freelancers provide services based on their personal qualifications, knowledge, or creativity.

Typical fields include:

• Design and development
• Language, media, and culture
• Consulting and education
• Healthcare

For example, if you work as a graphic designer, copywriter, or software developer, you are often classed as a freelancer – which means you don’t need to register a trade business.

How freelance work differs from running a trade

In Germany, a key difference between traders (“Gewerbetreibende”) and freelancers (“Freiberufler:innen”) lies in the nature of their work and the resulting duties and taxes.  “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. Most freelancers only need to register with the tax office (Finanzamt) and are exempt from trade tax.

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 trader and pay business rates.

• Traders are required to register their business with the appropriate trade authority. This registration is the official basis for operating a commercial enterprise and incurs an obligation to pay trade tax. The registration involves certain formalities and often fees. Freelancers only need to register their activity with the tax office – a straightforward process that involves no extra fees.
• Traders often face stricter accounting rules, for example compulsory double-entry bookkeeping or full financial statements, depending on the size and legal form of the business.
• Traders can operate as sole proprietors or within corporate forms like the UG or GmbH, while freelancers typically work as individuals or in partnerships without forming a separate legal entity.

Typical examples of traders include retailers, craftsmen, restaurateurs, or service providers operating in active business sectors.

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.

Requirements for registering as a freelancer

Proof of qualification

To register as a freelancer, you’ll usually need to provide your tax office with proof of your professional qualifications. This could be a university degree, a recognised vocational qualification, or relevant work experience. For certain professions, membership in a recognised professional body is also required. Clear, simple language helps you understand these steps without hassle.

Personal and independent execution

Your freelance work needs to be done by you personally and independently. While you can have support, the core services must reflect your own knowledge and expertise. This not only ensures quality but also builds trust with your clients.

Professional licensing

Certain fields require official licensing or registration with a professional chamber, for example doctors, lawyers, or tax consultants. Meeting these standards protects both you and your clients and keeps your business compliant with industry rules.

Compliance with legal regulations

Whether you work full-time or part-time as a freelancer, you must follow the same tax and legal rules. This includes timely registration, invoicing correctly, and respecting any sector-specific guidelines.

Belonging to recognised professional groups

Your service should fall under the categories classified as “catalogue professions” under German tax law (§ 18 EStG), or be equivalent to them. These include healthcare professions, consulting, arts, education, and technology. Having a clear understanding here helps you choose the right category and comply with regulations more smoothly.

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

Make sure to clearly explain what you do. Instead of just saying “design,” try something more specific like “developing brand identities and designing print and web media.” A detailed description makes it easier for the tax office to classify your work correctly.

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.

Fill out the tax registration form online

Visit elster.de and create an account. There, you’ll find the tax registration questionnaire. You’ll need to enter detailed information about your business activities, expected revenue, bank details, and other important data. The registration process for individuals usually takes around 20 minutes.

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.

Tip: 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.

Complete your registration 

Once you have your tax number, you’re officially registered as a freelancer. No other registrations are generally required at this stage. Now you’re ready to start your freelance work, fully compliant with tax regulations.

Bookkeeping & taxes: what to expect

Managing your finances as a freelancer is essential – but don’t worry, it’s simpler than it sounds.

Which taxes do you need to pay?

Income tax: You pay income tax on your profit, which is the difference between your income and your expenses. The tax rate increases progressively with your income level.

Value added tax (VAT): If your annual turnover exceeds €22,000, you’re required to collect and remit VAT. If your turnover is below this threshold, you may qualify for the small business regulation which exempts you from charging VAT.

How does bookkeeping work?

Profit and loss statement (Einnahmenüberschussrechnung - EÜR): As a freelancer, you’re not required to prepare a full balance sheet. Instead, you simply track your income and business expenses in a profit and loss statement.

Tools and aids: You can manage your EÜR in a simple Excel spreadsheet or use accounting software like Lexoffice or sevDesk. These tools make it easier to stay organised and prepare your tax return.

Record keeping: Keep all your invoices, receipts, and proof of business expenses safe, as the tax office can request these documents during an audit.

Tips for getting started:

• Open a dedicated business bank account to keep private and business finances separate.
• Use bookkeeping software with reminder features for tax deadlines.
• Consider consulting a tax advisor to avoid mistakes and maximise your tax benefits.

Health insurance and more: what you need to know

Health insurance: always mandatory

As a freelancer, you are required to have health insurance. You can choose between public health insurance (Gesetzliche Krankenversicherung, GKV) or a private health insurance plan (Private Krankenversicherung, PKV).

• Public insurance contributions depend on your income, and family members can often be covered for free.
• Private insurance typically offers more comprehensive coverage, but costs vary based on age, health status, and chosen plan. Switching back to public insurance later can be difficult.

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.

The artists’ social security fund (Künstlersozialkasse – KSK)

If you work as an artist or journalist, you might be eligible for coverage through the KSK. This fund covers a large part of your social insurance contributions – much like an employer would for a traditional employee. This support helps reduce your costs for health, nursing care, and pension insurance.

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.

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.