A little over 4 years ago, I decided to quit my job to become self-employed in Germany. After years spent in the cosy realm of full-time employment, i took a leap into completely uncharted territories for me. I was excited, I was motivated and with no regrets. Soon thereafter however, I was facing a little mountain called bureaucracy. To become a freelancer in Germany was not going to be easy but with my best efforts and a little help, I did go through that challenge unharmed. This guide is an attempt at transferring my experience to spare you some sweat, tears and stress.
Disclaimer: Please note that this is an attempt at covering an excessively broad topic. You might want to prepare a cup of tea before diving in. It’s a whale of a read.
The difference between freelancer & self-employed: which one are you?
Before worrying about documents, registration, taxes and so on, you will need to understand the difference between being a freelancer and being self-employed in Germany. Although it does sound similar, there are pretty substantial differences between the two. Self-employment can be divided into 2 broad categories:
- Freiberuflich or freelancer: it is one specific type of self-employment that is limited to only a certain number of liberal occupations. Those professions are often linked to some sort of scholar, academic or creative service, as defined in income tax law here (EStG § 18). Those can range from dancers to doctors, from architects to journalists, from lawyers to programmers. You can find a complete list of those professions here or here. If you still have a doubt, feel free to ask in the comments. Freelancing in Germany does not require to register a business which involves less paperwork.
- Gewerbetreibende or tradesman/business: this is linked to all other kinds of occupations that don’t qualify for the official freelancer definition. Any other sort of commercial entreprise usually falls under the classification of business in Germany. Most often than not, it is about building, trading or selling physical stuff. In this case, you will need to register a business (Gewerbe), which explains why the term “Gewerbetreibende” is used to differentiate this category.
Everything around registration
In that part, I will assume all that you have already cleared the following things:
- Doing your Anmeldung to register your residence in Germany.
- Having a valid residence permit (for non EU citizens).
- Figuring out health insurance.
If not, just click on the link for each topic. It will redirect you to another guide on this blog.
Registering as a freelancer in Germany (Freiberufler)
Registering as a freelancer in Germany is a fairly straightforward process as it doesn’t involve registering a corporation or getting trade permits. However, please hold in mind that some occupations will require a specific degree to be able to work in that field.
This is what you need to register as a freelancer in Germany:
Fill in the form called Fragebogen zur steuerliche Erfassung. It’s a small questionnaire to let your Finanzamt know that you plan to become a freelancer in Germany. Here is how it looks. Since January 2021, this form must be submitted electronically to your local Finanzamt. There are different alternatives to do that.
- Alternative 1: you can use ELSTER, which is the official software published by the German tax authorities. However, you first need to request a login & a password, which arrives by post in separate letters for maximum security. This can take several days. ELSTER is a good software to use, but it’s all in German. There is a small learning curve. If your German is a bit sketchy to fill in the form, you can use this little guide.
- Alternative 2: Use Sorted’s easy to use registration tool (100% English there). This option is as secure but much faster and more intuitive. Sorted is a bookkeeping software for freelancers in Germany. It’s using secure protocols to transfer your data to the Finanzamt as an official partner. There are no strings attached when registering for an account, but their free accounting solution is actually pretty relevant to English speaking starters.
If are not sure which Finanzamt is yours unsure, enter your postal code here.
Registering as tradesman in Germany (Gewerbetreibende)
As the name suggests, you will need to register a Gewerbe (a business) at your local Gewerbeamt (Trade office). In this case, you will need to register your Gewerbe before going to your Finanzamt. This is also fairly easy, especially if your status is going to be Einzelunternehmer (Sole proprietor). You will need to bring the following with you at the Gewerbeamt:
- A valid ID document or passport
- Your Meldebescheinigung (adress registration certificate)
- The filled-out Gewerbe-Anmeldung form available on your city’s local platform. (Links for Berlin – Hamburg – Munich – Frankfurt)
- Between ten and forty euros for the registration fee
Additional pieces could be health or regulatory permits (for opening a café for example), certificate from trade offices if you are going into a particular skilled craft sector or if working with children, a certificate that you don’t have a criminal record. If you are unsure about this, get in touch with your local Industrie- und Handelskammer – IHK (Chamber of commerce); they will tell you about all the permits you need for your activity.
Once you have registered your Gewerbe, the process at the Finanzamt is then the same as mentioned above for freelancers. You can refer to that.
I’m not covering here other business structures such as UG, GmbH or GbR as this post is aiming at one-man businesses and at how to become a freelancer in Germany. It usually requires to go in front of a lawyer to establish the corporation, and registration at the local IHK first (Handelsregister).
After you registered
Once your registration is complete, you will receive a few letters from the Finanzamt after a few days:
- Your new tax-ID (Steuernummer), which you will need to put on all your invoices from now on.
- Your VAT ID, if you applied for one & your VAT taxation method.
- Your prepayments notice: that gives you details about when/if you should prepay income tax through out the year (quarterly or monthly)
I have made a detailed article on the letters you get from the Finanzamt as a freelancer this way. It expands a little bit on the bullet points above.
Everything around health insurance
A big concern when becoming a freelancer in Germany is to be able to understand the system & pick the right health insurance. You probably know that you can either go with private or public companies. If you need to refresh your knowledge on the matter, have a look at this post on this blog that explains how it all works. In a nutshell though;
- Going with public companies (Gesetzlichen Krankenkasse) means that yours fees for health insurance will be based on your income at around 15-17% of what you earn, with a legal minimum monthly fee of about 210€/month (Mindestbeitrag when earning less than 1,131.67€ per month). This option is more costly, especially in the beginning when you don’t earn anything, but it does cover kids and spouse with you.
- Going with a private scheme (Private Krankenversicherung) means that the rate is based on your health profile and risks. Consequently, if you are young and fit in your twenties, you might have plans as cheap as 150€ per month. However, as years go by and your health is more fragile, it can quickly increase to 500€ or even more if you are in your fifties. Kids and spouse are not covered. Pick your provider carefully since they each have unique plans and different coverage at different prices. The offer is way more diverse than in the public system.
You can read a detailed guide on how to pick between private & public healthcare in Germany.
Good to know when freelancing in Germany
Artists & performers can have half of their fees covered by the KSK (Künstlersozialkasse) when they stay in the public scheme. Full guide on how to get into KSK here.
People currently out of a job and registered at the Arbeitsagentur can apply for a Gründerzuschuss. It is a little grant which helps you pay your health insurance in the early days of your self-employment in Germany.
Everything around taxes
Let me first introduce the main actors involved in this story:
Umsatzsteuer or Mehrwertsteuer (V.A.T)
As pretty much anywhere, a value-added tax paid by businesses at either 19% or 7%. Here, you can deduct the amount of VAT you paid on good or services you bought from the amount of V.A.T you added to your own bills. If you paid more than you received, the Finanzamt will refund the difference. This is paid monthly to the Finanzamt during the first 2 years and quarterly after this if you don’t collect so much V.A.T through your activity.
You can choose to avoid this scheme altogether by adopting the “Kleinunternehmerregelung” (Small business rule). This means that there is no billable VAT on your invoices, but you can’t deduct VAT on things & services you bought either. This rule makes sense for smaller operations with little investment: less strain on the cash flow.
You are eligible to this special rule if you are not earning more than 22 000€ in the current or previous year, and not more than 50 000€ in the coming year. Above this limit, it’s compulsory to bill V.A.T as well. In some cases, you also still need to register for an EU V.A.T ID if you plan to do business with clients outside of Germany.
You can apply for a VAT ID at registration or after registration, if your plan changes. If it’s after registration, go here and choose the form on the right hand menu “Vergabe einer USt-ID”. The right form will open. Choose the right Bundesland where you are located, and the right Finanzamt, insert your Steuernummer as well and the legal form of your activity (Einzelunternehmer or Freiberufler). The form will be processed automatically when you send it and you should receive your number by mail a few days after.
More details on knowing which VAT rate to apply on your invoice.
Einkommensteuer (Income tax)
For freelancers and self-employed people, the income tax will apply to everything you earn with your small business. In Germany, there is a threshold under which the income is always tax free. In 2022, this amount was 9 984€ per year, i.e; any euro above this is taxed. The tax is due every year to the Finanzamt and should be declared before the 31st May of the following year. It is a part of your Steuererklärung. For the second or third year of operations, the Finanzamt usually decides to set quarterly installments instead, based on previous statements. This means that instead of paying the whole amount at once every year, you need to transfer a part of it every quarter. This has the advantage to be safer/smoother on your cash flow.
More details on income tax in Germany here.
Gewerbesteuer (Trade tax)
This trade tax only applies to Gewerbetreibende. It’s an additional tax that applies on your overall turnover for the year. You are not required to pay if your turnover is below 24 500€ per year. It is due yearly to the Finanzamt and should also be part of your Steuererklärung, sent in before the 31st July of the following year. For high-earners, you can also expect quarterly installments too.
So to sum it up:
| Tax type | Who pays it? | When? | How? |
|---|---|---|---|
| Umsatzsteuer | Freelancer – Gewerbetreibende (except if Kleinunternehmer rule applies) | Monthly until the 10th of next month, then every quarter if you don’t collect a lot of V.A.T. | Fill in form: “Ust-VA”
(Umsatzsteuer Voranmeldung) |
| Einkommensteuer | Freelancer – Gewerbetreibende | Every year until 31st July (for the year prior) or quarterly installments instead. | With your Steuererklärung
Fill in form: “Est 1 A” |
| Gewerbesteuer | Gewerbetreibende | Every year until 31st July (for the year prior) or quarterly installments instead. | With your Steuererklärung
Fill in form “GewSt” |
How do I communicate with the Finanzamt?
It is highly required to use the government’s issued ELSTER tool to communicate with the Finanzamt. This software has all the forms required to be able to declare what’s relevant and do your tax return.
How to register with ELSTER
The process takes place in different steps for additional security:
- Open an account on the official ELSTER official website.
Like with any other web portals, it starts entering login information. Click on “Benutzerkonto erstellen” on the homepage. - Chose your login method:
Aside from a secure password, ELSTER is using another identification item to log onto the portal. You can choose between a few options. Pick “Zertifikatsdatei” (Certificate file) as it’s easiest option of all. This file will be requested to login onto the ELSTER portal. - Specify if you register as a person or as a organisation
- Enter your personal information
You will need to fill-in the usual fields like email address, birth date, etc. - Confirm your email address & obtain your activation ID.
Check your SPAM folder if necessary and click on the confirmation link in the email. This will trigger a second email containing an activation ID. - Receive your activation code per post
- Use activation code and activation ID to generate your certificate file.
With those 2 unique keys, you will be able to authenticate and safely generate your certificate file. This file will be required in order to log onto the ELSTER portal. During this step, you will also be required to pick a password. - Download your certificate file and start using ELSTER
After generating your file, safely store it onto your device. Use the file and your new password to start using ELSTER
You can also use accounting software too. They integrate with ELSTER directly, sending the right numbers with the right forms on your behalf for most the most common ones. A selection here.
What does the process for the yearly tax return (Steuererklärung) look like?
I have made detailed guide about this topic this way. It has a lot more details and i will avoid making this post longer than it already is.
Which expenses can I put off in taxes?
Being successful as a freelancer in Germany is just as much about increasing your income as it is about decreasing your taxable income. There are a certain number of expenses that can be accounted for to reduce your total taxable income. This is why you need to make sure to keep during 7 years all bills related to:
- Stationery
- Office space and equipment, also if working from home.
- Coworking spaces (Post about coworking spaces in Berlin there)
- Work-related trips
- The services of an accountant
- Half of your phone bills
- Cost of childcare
- Business lunch or dinner
- Health, pension and other insurance contributions.
You can find amore detailed list of what expenses are deductible in Germany as a freelancer on this post. How to properly account them for, I will cover in the part about book keeping later on in this article.
About banking
Do I need a special business bank account?
Becoming a freelancer in Germany (or simply self-employed for that matter) comes with simplified management, and that’s true for your bank account too. You can simply use your personal bank account if you already have one to support all your expenses and incoming payments for your operation. This comes with the risk of using your personal funds to support your professional life though. Make sure to separate both to avoid cash flow issues, especially if you decide to pay V.A.T as well.
You can of course decide to open a second bank account dedicated to your professional life. If you need help on how to open a bank account in Germany, i have already made a dedicated guide this way.
Around invoices, bookkeeping & billing
Bookkeeping obligations when freelancing in Germany
All Gewerbe that reach 60K€ of profit or 600K€ of revenue 2 years in a row will be requested to switch from a simple entry accounting record (Einfache Buchführung: via an EÜR – Einkommen Überschuss Rechnung) to a double entry system (Doppelte Buchführung: Bilanzierung). Below these limits, simple entry system is enough.
Freiberuflich people can stick to a simple entry accounting system, no matter their level of income or revenue.
Deep dive into this double entry system topic on this page and on the simple entry system on this page. (in German)
Doing invoices right
Now that you are a proper business, make sure that your bills are also as professional as your business cards. They need to include certain items to be valid and accepted by the Finanzamt, your client & your Steuerberater.
You can read here how to format a German invoice and what to include in it.
Keeping your books clean
I don’t need to tell you that one of the challenges becoming a freelancer in Germany is to be able to keep an eye on your finances, your ingoing and outgoing bills. A lot of self-employed people in Germany have failed their projects or lost a lot of money because of bad accounting. I know i know; it is sometimes frustrating to be almost spending more time being an accountant than doing your actual job. Why is this important:
Rigorous accounting has 3 long-term advantages
- At some point or other, you will get audited by the Finanzamt. This means they can ask questions on anything. Keeping the records straight will avoid headaches and conflicts, especially if it’s about 5 year old items.
- Every year until the 31st May, you will need to do your tax return (Steuererklärung) and communicates how much in total you earned during last year, this can be done in minutes if things are kept clean, not hours.
- You can account for all small expenses you had during the year, which will add up to a lot to reduce your taxable income for your tax return to. This requires properly recording and filing each bill you received, physical or not.
For this, a simple excel sheet will do if you have patience and you are rigorous. This page has a pretty neat Excel template (especially for Gewerbetreibende). This involves a manual entry for each item in a table divided by month. It’s also hard to keep a copy of each bill when you have expenses.
However it doesn’t have to be that way. Nowadays, there are free or reasonably priced apps that allow to keep control of all movements during the year and facilitate the work of a Steuerberater if you have one. I’ve written a detailed guide on what to expect from a good accounting software for freelancers in Germany here.
Here is a short version of that guide:
- Sorted: An interesting newcomer on the market, that offers a free option that lets you do your Steuerklärung. The paid option lets you do quarterly/monthly declarations. It’s the only player on the market that offers a Steuerberater on demand, directly from the software. (Free plan or 60€/quarter, or 80€/year for Kleinunternehmer) – Interface 100% in English.)
- Accountable: A new challenger in this increasingly competitive space, Accountable has all the bells & whistles you would expect and sports an intuitive interface. Definitely a good choice too & available in English.
- Debitoor: Also, a trusted name in the German market and internationally. Debitoor offers a wide array of features with banking integrations, and connections with the Finanzamt. It is a bit more open to a new economy use by integrating third party partners or API to make it easy to accept payments through PayPal, use Izettle or connect your online shop. (From 12€ per month – Interface in English, German or 7 other languages – Free test)
- Lexware: Consistently awarded by “Praxis Tests”, trusted by Steuerberatern and used by thousands of small business owners and freelancers. It is a reference in Germany and covers all of your accounting, invoicing and tax returning. (From 10€ per month – Interface in German only).
Remember if you pick one of the paid options: this would count as an expense you can put it off in taxes too! It’s money well invested.
Using a Steuerberater
You may have worked with a Steuerberater before to optimize your tax return as an employee, but if you become a freelancer in Germany, they can do much more than this. Although the name “Tax advisor” only suggests proficiency in tax related issues, they can help freelancers for the following issues:
- Bookkeeping & Accounting
- Trade & commercial law
- Help with with V.A.T, Income & Tade Tax (calculating and filing when it’s due.)
- Help with the annual tax return (+ EÜR & Gewerbe tax for Gewerbetreibende)
- Representative duty (communicating with the Finanzamt in your stead.)
- General legal counselling
Using a Steuerberater can appear costly but it’s often worth it when you are starting to earn well. The bet is that the benefits/return will off-set the expenses. Their fees are usually paid monthly if they are involved with the daily accounting business and/or yearly, if you only need help for the tax return until the 31st of May.
The costs of hiring Steuerberater is often well worth-it as it will optimize your expenses & maximize your tax return.
You can often greatly reduce their monthly fee by using one of the bookkeeping programs mentioned above. This is because it’s much less work for the Steuerberater to collect and process information through an export function than to process an excel sheet. Those software usually have a special access for Steuerberater made especially for that. Sorted goes even a step further than that because you get assistance from a Steuerberater directly from the software, on demand (100% in English). It might be a good middle-ground if you are not sure if you really need one all the time.
If you don’t know where to start to look for one: more info on how to find an English-speaking Steuerberater in Berlin (but the advice works for elsewhere in Germany too).
Other resources to consider when freelancing in Germany
- Make it in Germany: A government-owned website for skilled-workers wanting to move to Germany. It has information on setting up your own business.
- Existenzgründer: Another great government-owned website that gives a lot of details on how to become a freelancer in Germany. It works for each profile of self-employment. It’s available in other languages but it is most complete in its German version.
- How to send payment reminder to clients: Delivering work is not always leading to getting paid. It’s useful to know how you can react.
About working for a former employer, or for a single client
I’ve seen around forums and FB groups that some people register as a freelancer to work for their former employer or a single agency. Please note that this completely illegal and can be considered a tax fraud or an evasion scheme. The German term for this is Scheinselbständigkeit , which could be best translated to “disguised employment”. It’s often an attempt from the employer to pay less taxes. It’s illegal even if the former employee, now freelancer, agrees to this setup.
Naturally, if you are just starting out as a freelancer in Germany, the Finanzamt won’t look too close if you only have a single client for a little while. It might become suspicious over time though. The official criteria for Scheinselbstständigkeit is that you only have one client, and that they make up for 5/6 of your total income.
Freelancing in Germany – FAQ
Yes, it is possible, provided you don’t do more than 18 hours on top of your full-time job. Your Krankenkasse costs will still be covered by your employer while combining both operations. You also need approval from your employer (in writing is better).
It’s illegal to quit as an employee and work solely for that employer as a freelancer. That would be considered a tax avoidance scheme. However, if your former employer counts as one of the several clients you work with and it doesn’t account for more than 5/6 of your total income, it’s fine.
Yes, it is perfectly legal and possible to have a side gig as a student in Germany. All the rules & regulations detailed in this post apply to you as well. The main question is about health insurance. If you are enrolled in your university, you have access to the reduced rate for health insurance. Depending on your income & the time spent on your freelancing, you might have to start paying your health insurance yourself instead (at a much higer cost). As a rule, if you work less than 20 hours per week as a freelancer, your Krankenkasse won’t ask you to pay yourself (exceptions may apply if you earn really a lot).
Yes, it is possible. It is however only realistic if the type of job you do is in demand in the area you plan to move to. You need to prove your relevance to the German economy when you apply for a German freelance visa. This is usually achieved by providing letters of intent from German clients who want to hire you in the near future.
Like any German resident, income tax is applied as a progressive tax, ranging from 0% up to 45%. This means that each portion of income is progressively taxed, the more you earn. Freelancers in Germany usually pay income tax in different installments through-out the year based on the income they earned the year before. More info there.
Good luck!
Ps: please note that despite all my best intentions, some of this information can be inaccurate or missing details. I urge you to talk to a professional coach, especially if you are preparing your freelance visa from abroad. Let me know in the comments if you spot something unclear that needs improvement or if i should cover something more.
Bastien
Hi , Thank you for all this information , i still did not understand if i am a self employee or a frelancer then .
Its says to see in that list but i could find anything.
Could you maybe tell me the status for me ? i work 5 days a week from home giving my services as office admin for a swiss company , i have no diploma for that.
Thanks in advance
Hey Gila. It’s not linked a degree in particular. Do you have an employment contract from this company or do you send an invoice to them?
Hi, great article – very informative and helpful! I have a question about VAT that maybe you could answer. I have a contract with a client and they are exempt from VAT because the business is based in the canary islands. Do you have any idea how I write them an invoice. As I understand, the German government requires me to charge VAT if I am over a certain threshold (which I will be).
Hey Jo. The 2 topics are not linked. You don’t apply VAT for clients based outside Germany. There are different best practices on how to do an invoice then. Here is a good overview.
As a freelancer in Berlin what percentage of your invoices would you recommend saving for tax payments?
Hey Andrew. If you are talking about income tax, you can try to do a simulation of how much you would earn, thus forecasting how much you’d owe in income tax. Here for example.
Hi !
A Question! I got an opportunity to work as a freelancer. But this work is not regular. Some months there won’t be any work. Do I need to still pay V.A.T or other taxes for the months where I don’t have any freelancing work?
Thanks,
Gowtham
Hey Gowtham. It depends at which point of your self-employement you are. You owe VAT to the Finanzamt on top of every invoice you make. This needs to be paid monthly or quarterly depending on your business turnover. As for income tax or business tax: there can be prepayments even though you might not generate any business at all. But i assume prepayments don’t apply to you if you work is not that regular. Note that you still need to declare VAT to the Finanzamt even though you do 0€ that/those months.
Many thanks for the valuable information
Hi Bastien,
Many thanks for the blog – it’s been really helpful. I have a small dilemma though and couldn’t really find a clear answer – maybe you might be able to give a tip:
I’m working as a full-time employed architect in Berlin. Recently I did a presentation in Frankfurt, on my own as a freelancer lets say, for which I will get paid (not much – the fee is about 700 euros). For the moment this is an isolated event. Do I need to declare such a small income? Do you know anything about such cases and what would be the right handling? Anything will be much appreciated. Best!
Hey Matei. Well in theory, you should be able to bill your clients with a proper invoice, as a self-employed person. You need to declare all and any income to the Finanzamt.
Hi there, is an Independent Contractor the same thing as a Freelancer? Or does that fall in another category?
Hey Claire. “Self-employed” and “independent contractor” mean the same in this post.
Hi, thanks for the great info.
My question is regarding hardware / software.
I am yet to become a freelancer as I need to gain experience with with new software first so that I am more efficient when working for clients. I can’t use the software (CAD) that I already know and use as it is too expensive. If I need to buy new hardware and software before registering, can I add these expenditure costs to my tax return once I am registered?
Also…
If I register as a freelancer do I need to inform my full time employer?
Thanks.
Murray.
Hey Murray. You first need to register as a freelancer to be able expense those costs. Your full time employer needs to be aware and agree to your side gigs.
Hi! This is a great article, and an invaluable resource. Thank you so much for compiling this information here!
Quick question – what do you mean when you say that you can combine freelance and day-job “provided you don’t do more than 18 hours on top of your full-time job”?
Hey Zensu. That is because the legal limit of weekly working hours is 58h.
Hi! Amazing post, super helpful.
I have a really short question. How long does it take to have the new Steuernummer since you submit the form? Like, from applying to been able to send an invoice. Thanks!
Hey Manuel. It depends, between 1 and 2 weeks, if all is in order.
Hi i have a visa with the name of the company that also lets me work as freelancer. Im waiting for the new visa but will take a month and i would be without a job without being able to start in the new company. Im considering working as freelancer for them 1 month while i get the corrected visa.
Questions,
I already have a SteuerID, can i use that one and just register as freelancer or do i need a new one?
Also, can i do that for 1 month and then go back as regular employee?
Hey Guacho. I can’t comment on visa related issues but regarding the SteuerID, you will probably keep the same number. The Finanzamt will let you know if it changes or not, or maybe if you get a separate one, after registration. You can be a freelancer and an employee at the same time, so the amount of time you are a freelancer is not relevant for the Finanzamt. However, please be aware that you can’t work for a single client, as it would be considered hidden/fake employment.
Thank you so much for explaining the difference between freelancer & self-employed! ( I didn’t know that!)
I would like to ask if you’ve ever known my situation: I have a work visa which bound with the company for a year (I only work for less than 1 year, 6 months first for Praktikum, 2 months ago in the same company got a normal part-time job visa)
Surprisingly, I just found on the visa, it says “selbständig tätigkeit gestatt” so it means I can do freelance work at the same time, I supposed?
So I will try to register in Finanzamt.
But, I am confused about the insurance:
by the “Everything around health insurance” part, I think it’s only for a “real” freelancer or self-employed?
Because I have insurance TK as a normal worker. Do I need to get myself another expensive insurance because I carry on some freelance job?
Or if you know where I may find the information about this “mix” situation…
Thanks in advance!
Hey Burger. I am in th same situation. It’s fairly simply: if you earn more as an employee, your Krankenkasse is paid from that. If you earn more as a freelancer, you need to pay yourself. You need to let TK know if that is ever the case.
Hey Bastien
Thank you for this great article.
I am a non EU Citizen , I work as a sound engineer , and I want to move to Germany , I have a German business visa for one year , can I move to Germany with this visa and start working as a freelancer ? And if it is possible to have permit resident without going back to my home country for having the freelancer visas. Thank you
Hey Joseph. i am no expert on the business visa but it seems that it is not meant for people to become German residents eventually, which is something you need to be, to become a freelancer here. As for the rest, you may want to use the hotline here
Another question… I have heard you can have a Hauptarbeit to cover the official insurance requirements, and then get a Gewerbeschein with less hassle to do your “self employed” job as a part time job.
Do you know anything about this, especially how it works in practice?
If you are referring to health insurance, your main job will pay for it, as long as you don’t earn more with your self-employment gigs. At this point, you need to notify your Krankenkasse about it and you ought to pay it yourself.
Great article, thanks.
So, random hypothetical questions that seem to be missed from most online topics and I am curious now. There must have been cases before?
What happens if you work as a freelancer before you register? What happens if you invoice and receive money before you are registered?
What happens if you work as a Self-Employed before you register? What happens if you invoice and receive money before you are registered?
Hey Rick. Well in theory, that is not allowed so i guess you can try to invoice your client later, after you have actually registered?
Hi, i have been searching online for the following info but perhaps i am searching in all the wrong places. I have been a freelancer for two years now in events. I stopped freelancing in October, and continued just with a minijob. Do i need to inform finanzamt or someone? Many thanks for your infos.
Hey Thomas. Sorry, i’m not knowledgeable about Minijobs in general.
Hi!
If I am newly unemployed after 2years employment and eligible for Unemployment benefits. It would be best to tell the job centre straight away, that I am looking to become a freelancer?
With the grant that is offered, this is only for self-employed or also freelancing?
I would need to live off the money that I am making myself, plus have the small grant to cover insurance?
Thanks !
Hey Beau. From my experience, the job center first tries to push you into a new job, since it’s usually a better chance to make somebody financially sustainable.
Hi Bastien,
I am self employed as a small business and also employed as minijob. The Auslanderbehörde send me paper that i need to send them the Prüfungbericht as self employed . I do my invoices under elster. Who should i ask for this Prüfungbericht.thanks in advance
Hey Racquel. Not sure i understand: Elster has an invoicing function? Alternatively if you need to prove income, can you not send your Steuerbescheid of last year, if you were self employed already?
Hi Bastien!
Thank you for this article.
I don’t let have a tax number, and I have my Anmeldung appointment on Friday where I will also request one. Do you know if it’s possible to request to be freelance during my Anmeldung appointment to kill two birds with one stone?
Thanks,
Nancy
Hey Nancy, it doesn’t work like this. You do this at the Finanzamt, and not during your anmeldung appointment.
Hi Bastien,
Many thanks for your reply. I have now registered my address at the Bürgeramt. Do you know if I have to wait for them to send me my tax number before I can register as freelance as the Finanzamt?
Thanks,
Nancy
Hey Nancy. Good question. If i were you, I’d rather wait a bit so you get all the right documents by post, confirming you that you now exist (from a tax perspective) in Germany. This might avoid some processing issues. But up to you!
Hi, Bastian.
Thanks for the info. How is the payment for alterskasse (retirement)? I’m worried that it’s too expensive and my freelancer work wouldn’t be my primary income as, for now, I wouldn’t make much.
Thanks.
PS: I have German citizenship.
Hi Bastien,
I am employed and have a tax number.
If i now register with the finanzamt for freelancing, will I get a NEW tax number ?
Thanks in advance,
Mare
Hey Mare. It depends. Sometimes, it changes, sometimes it doesn’t.
Hi Bastien,
I think you have a mistake in this article. In Germany, there is a difference between Self-Employed (Freiberuflich) and Freelancer, but those are altogether different from Self-employed while having a business venture (“Gewerbe”), which makes your article confusing for people. There are certainly different bureaucratic steps that need to be taken depending on these classifications. There are several other blogs covering specific distinctions of these categories. I thought you might wanna know 🙂
Best,
Loola
Hey Loola. Well i made the distinction here: https://settle-in-berlin.com/how-to-become-a-freelancer-in-germany-self-employed/#The_difference_between_freelancer_self-employed_which_one_are_you.
Hey Bastien,
Thanks for the info. My wife, based in Berlin is interested in doing Sales remotely for a Denmark Footwear brand and only earning commission. Would this fall under Self employed, Freelancer or employed by the Denmark company? She will not physically touch or distribute the items, purely remote sales.
Let me know if you can, Thanks.
Hey Chris. She would probably be self-employed here in Germany, if she is a German resident and the footwear company has not interest in employing her.
Hi, Thanks for all the information. I wanna ask how can I finish my freelance papers? Thanks!
?
Hi Bastien,
Thank you for this great article! I have my own business, selling web templates and also work for UK agency UI design per project. I’m a Non-EU person and want to move to Germany. Is there any possibility to move my business there and how this will be treated by the German law?
Thank you very much,
Dubravka
Hey Dubravka. The business in itself is completely fine and you would be able to run it from here. It’s just a matter of getting a visa with that kind of business. Have you checked this?
Hey Bastien,
thanks for this amazing article! I wanted to ask, when you quit your job to become self-employed, did this website become your business? I’m interested in becoming a full-time blogger but I’m not sure how much registering this kind of business differs from a self-employed/ freelance journalist for example. I’m also a bit intimidated to visit the authorities and talk to them about this as I think they probably wouldn’t consider it a real profression and might laugh at me!
Any tips on how to go about this? Thanks in advance
Hey Louise. (Although this website generates some income, i cannot go full time with it. I’m still working a normal job. When i quit, it was to create another company.). A self-published blog would not be considered a “Freiberufliche” profession. It would be considered Gewerbe (like it is, in my case). The registration process is just the same as for any other Gewerbe.
Hi! If I am employed elsewhere (in another country) and work remotely here under the Work Holiday Visa – do I still need to pay taxes? Even though my salary is coming from another country?
Hey GR. It depends, are you considered a German resident for that time? I would assume not since work holiday visa are usually less than 6 months long ?
Hey! Thank you so much for this post it is really excellent and informative. I have been a registered freelancer for 2 months, and now I’m leaving Germany. My income from the job won’t be more than 3,ooo EUR so am I correct in thinking I do not owe any tax? Do I just need to declare it to the Finanzamt?
Thank you once again!
Hey Emily. If you only have had this an income, then yes, you will be below the threshold, but you still need to declare it to the Finanzamt, or possibly from wherever you are moving next.
Hi! Thanks for a great article! My question is: I’ve been selling my handmade ceramics on Etsy and at markets for about 18months already, but i still haven’t registered as a Gewerbe/Kleinunternehmen. If I register now, what happens with the income from the last 18 months? It’s at a total of 2000 euros for 2018. Thanks again for your help!
Hey Vendi. Well, this would be considered black-market/work under the table so i’m not sure if you would get a fine now, even if the total turnover is low. This amount is in theory adding up to your total taxable income, but since you were not in theory allowed to produce that income, i’m not sure how you would even declare for your tax returns. Good luck with it all.
Hi Bastien, great article!
I have a short question. Few days ago I meet a guy and asked me for help about some programming stuff for his business.
I’m not yet registered as freelance. Can i still invoice for this small gig? As everything is going through his Business I am not sure about how to do this. Even if the amount is little.
Hey Daniel. First register, then invoice.
Hey BASTIEN, Great Job on this nice article.. I have question about Freelance work on behalf of my wife. My wife just started working as freelance for an IT company. The contract shall last for six months and the income expected out of it is definitely less than 17500 €.
– Does my wife eligible for the Kleinunternehmerregelung (Small business rule).
– Does my income also counts into this bussiness.
– What are the best insurance options she can choose for six months.
– How do we apply for it.
– Do we need VAT number (do you recommend having it).
– Do you know how to apply and procedure via ELSTER. we are trying hard to find way for filling this forms online.
– Can you put in simple words where to begin and how to proceed with the invoicing her client.
many thanks again.
Hey Santosh. I suggest you had research of your own of those pointers. You wife can be a Kleinunternehmer, but i suspect that as freelance in IT, she will soon be over that limit. Your wife’s activity is her own. You have nothing to do with this. I don’t know what you mean by insurance options, can’t help you. VAT number: up to you, probably a good idea. Please refer to the section about invoicing in the post otherwise. I will ammend to post to explain how to get a VAT ID. Go here and choose the form on the right hand menu “Vergabe einer USt-ID”. The right form will open. Choose the right Bundesland where you are located, and the right Finanzamt, insert your Steuernummer as well and the legal form of your activity.
Hi Bastien,
I am already registered as Freiberufler. I know that is possible to hire someone else as part of my business, are there restrictions related from which country that person should be and work? Does he/she has to be a german resident or it can be someone from Spain, registered there with the taxes and work remotely?
Thank you!
Hey Silviu. You are a Freiberufler, hence not a business. There are no particular restrictions as they will be a service provider to you and not an employee. They simply send you a proper invoice for that.
Hey, Bastien, first of all congrats for your article, very helpful. Thanks for doing this. I have some questions. I am a EU citizen and currently living in Germany for 17 months. I have a unbefristet, fest arbeitsfertrag and I am interesting to work also online, offering services through my website which currently is under development (I am a web developer). It will be a directory of professionals that will offer their services to users that need them. I will earn from the registration and publication of the professional’s profile on the website. What do i need to do? Should i speak with my arbeitsgeber? Do i have to register? And as what should i be registered? Probably will pass some time until the professionals join and publish their profile for a fee. So i won’t earn nothing. Should i run it without registration and when the first professional joins then i will take the required steps. I have no idea what should i do. I am not good at public office services and bureaucratic things and processes. What would you do in my place? Please help.
Hey Nikos. Your employer needs to be aware of your side gig and needs to give consent. In theory, you could build your platform and consider it as a hobby in the beginning, so no need to register a business yet. It’s only if you plan to be able to invoice and put off expenses with this project that you need to register. Hope this helps.
Hello.
Thank you for your super informative blog.
Can you please guide me towards regulations for working from home.
More specifically is the ‘live-work’ situation available in the UK also possible in Germany?
To be specific, I am a professional sewer. I own all my own industrial equipment. Rather than pay rent x 2, at times in the past I have been able to rent a larger place and dedicate a part for work and the other part for living. Any advice or leads as to how I can find out if this is possible in Germany? Thank you.
Hey Emilia. If you are using a room in your apartment as a work place, you can deduct part of the rent (per sqm) for that space off in taxes, as work related expenses. The room must be clearly separated from the rest of the living space and only have this work-related purpose.
thank you for this great article
an i have to work for german clients to be register as a freelancer ?
i’m already have a freelance work on many contries .. is that enough ? or i have to leave those clients and search for new ones in germany !
Hey Sarah. No, you don’t need have any German clients, if you don’t need any visa to work as a freelancer.
Hi Bastien, thanks for your efforts on this article – very helpful!
I am an Australian applying for the freelancer visa as a digital marketer. Quick question, do I need to register my Gewerbe and go to my Finanzamt before I have the interview at the Auslandebehorde?
Also, if I am registered as an Einzelunternehmer (sole operator), am I able to hire other freelancers outside of Germany on a short term basis to help with my projects?
Thanks!
Martin
Hey Martin. Have you seen this post about getting a freelancer visa for Germany. Requirements are listed there. You can work with whoever you like, freelancers from abroad included.
Thank you for this excellent article. I am working full time and have the Niederlassungserlaubnis. Now I want to try out freelancing on the side with small side gigs. For example, work on marketing projects posted on freelancer.com. I think I will spend only a few hours and earn up to 400 or less in general per month with such gigs. Questions:
– do I need a freelancer permit?
– do I need to check with my employer? Contract doesn’t say much.
– is declaring my side income yearly enough? I use tax consultant service to do my taxes.
-would taxes eat into the side income so its not worthwhile?
Thanks,
Mila
Hey Mila. Glad the article could help. Yes, you need to register as freelancer but if you are permanent resident here, a freelancer visa is not needed. Your employer needs to be aware of your side gig and agree to it. Best is to record the agreement in writing. Regarding taxes: what you need to declare and when is stated in the post. See this post for income tax, there is a calculator there. Good luck with it all.
Hi Bastien,
I am currently living and working in Denmark as a freelance videographer. I am considering going to Berlin for some periods to collaborate on projects, and assume that I would then have to register as a freelancer in Germany. But since I am already health insured in Denmark, would I have to be insured in Germany as well to be working there? Thanks a lot!
Hey Mikael. You don’t necessarily need to register here as a freelancer to work in Germany. If you remain a Danish resident, you could consider those periods of time business trips, and bill from Denmmark and be insured there.
Hello
As per my understanding for the first year as freelance you cannot pay income tax quarterly. You are supposed to pay during tax returns next year. From second year onwards you can pay quarterly. Is my understanding correct?
Ajeesh
Hey Ajeesh. Yes, correct.
Hi Everyone,
Okay, not sure if this can be answered but here we go. If from the UK and setting up an online business, can I be registered in Berlin but do all the tx etc from the UK? By that I mean be a UK paying resident of business and located and registered in Berlin?
Thank you, love this site!!!!!
Hey David. If you are an English resident and you work as a freelancer (not a registered business), then you need to be paying taxes in the UK.
Hi!
I just left my job and have health insurance valid for one more month (AOK) before i need to cover it myself. As a freelancer – once registered can i call up my health and arrange a payment based on being a freelancer now (?)
Great information!
Hey David. Yes, simply let them know about your new situation.
Hello Bastien, thanks for all this information. I see you have mentioned health care, but what about pension (or social security fees?); I red that with net revenue exceeding 450€ per month, it is mandatory to pay for the social security pension scheme, around 18% of monthly income. Is this correct? If yes, where should we register? Many thanks.
Hey Delphine, this would be dealt through the Krankenkasse as well. You can chose to opt-out of certain contributions in some cases.
Hi! Is ok if I have a part time job with a contract and I also want to be a freelancer? Thanks!
Hey Gabriela. Yes.
Thanks Bastien for this great and useful article. Can I have a question? I am a Vietnamese and having a dependent Visa attached to my wife’s student visa (3 years), ending this September but we are going to extend the visa. So, in this situation, could I myself apply for a freelancer visa? I am a translator/interpreter. I had my Steuernumber already. If i have a freelancer visa in Germany, can I work in another Eu countries? I would really appreciate if you can give me some hints on this issue. Thank you very much for your kind help!
Hey Vinh. Have you looked at this post? It may give you the answers you are looking.
Hi Bastien,
I am currently a student (non-EU) in Germany and recently got a job as a consultant in another country for 6 months. I will be working remotely. My question here would be can I still be a student and register myself as a freelancer or is there anything else that I need to do or is it okay for me to do nothing and continue being a student?
Also, I was wondering if I can still be a student in Germany and work in another country in a working visa for certain months?
Thank you in advance!
Hey Louie. You need to look at what your permit says but in theory, a student visa allows 20h working hours per week. For the rest, you’d need to ask a immigration expert.
Hello Bastien,
Brilliant and informative article! Thanks for your article I feel less stressed.
My question is a bit different different with Louie, I am also a student (studying Master) too but instead of having an offer I want to start freelancing, should I apply for a freelancing tax number instead of getting a freelance visa?
Thank you very much.
Hey Kiki. There is no differencs to the local authorities. He has clients, and you don’t have any (yet), which is just a business difference. Immigration-wise; my answer stays the same. Good luck with it all!
Hey Bastien, such worthful post mate, I am an employee as an architect, and i have got a small project from a friend which i would like to do as a freelance architect. this will be a one-time thing, how should i take care of the tax for this situation? any suggestions?
Hey Salah. No half-way solution i’m afraid. You’d need to register and everything if you want this to be done by the books.
Hey, Bastien, first of all congrats for all Info above. I have a situation here and dont know what to do. I have a midi Job and now i have a opportunity for one Job as a free lancer, but is just one invoice, one month. Can i still with my midi Job , and my Public insurance paid by the actual job?
Many thanks for your help
Hey Marcos. Not sure i understand your situation? Both minijobs and freelancing arent paying for health insurance…?
Hey Bastien!
You rock, mate. I can’t believe that such a valuable information is available for free. Thank you!!
My name is Vini.
So, after reading this post, and applying it to my situation, I need to take following steps. Please be kind and take a look. Thanks in advance.
Brief background: I am a full time employee here in IT field (in Munich) and currently my VISA states NOT to do freelancing
1) Go to Finanzamt and get a permit for Freelancing (Actually, I am also eligible for niederlassung, so this should be done fairly easily)
2) Once I get my permit for freelancing, I resign from my full time job and complete the notice period
3) I already know who would be my client once I start freelancing. So, I go to them and start working.
4) I invoice them every month and then I go party 🙂
Now, my questions are:
a) Do you think the steps I listed above or correct and in order?
b) Do I need any contract from the client before I go to work for him?
c) Considering an annual income in excess of 80,000€ gross, what is the approximate tax I end up paying (tax class 4)?
I know you have already explained a bit of tax, but I couldn’t get my mind around on the exact % of deduction.
d) Once I get my freelance permit, am I legally not allowed to do full time job at all? For ex, if i change my mind after getting a freelance permit and want to continue my regular job.
Thanks a ton!
Vini
a) yes, provided you sort out your freelance visa before.
b) a letter of intent (several actually) would be needed if you needed to apply for a freelance visa for Germany, as described here.
c) More about income tax rates there.
d) Hard to say on so little details.
Hi Bastien – are the Freelancer forms here still the same for 2019? I noticed a lot of forms on the Finanzamt website looked a little different. Also I got my spousal visa in late December 2018 for Berlin, will I be fined by the Finanzamt for only registering as a freelancer now?
The forms are changing from time to time. The ones for 2019 are not out yet. You won’t have any issues with the Finanzamt if you didn’t do any freelancing without registering as such first.
Hi, I live in Germany for 6 months now and I have a work permit related to a company. Do you know if it is possible to change to a freelancer visa, but working for a company outside Germany?
Hey NQG. You should check if your residence permit allows you a freelance activity under your current visa. Look for “”Selbständige Tätigkeit gestattet”. If that’s not the case, it is possible to apply for it but then you lose your current visa the moment it is granted to you, and you can no longer work for this company. Giving it a go with only a foreign company as client is probably not going to work though. Refer to the post about freelance visa application for Germany.
Hello Bastien,
i
Firsts things first, i cant believe all this content isfree. thank you for that.
i have a question regarding visa type too,
1. if my visa allows to do freelance, do i still need to change it to complete “freiberufler” or i can just quit my job , inform foreigners office and continue with freelancing work on my current visa?
2. considering if the visa type has to be changed, what would be the duraiton of my new visa, since current visa still has 2 years validity, will that be considered?
thank you for your response!!!
Hey Sandeep. 1- Hard to say on such little details. Better call this official hotline to check. 2- No idea. again call that hotline.
Hi Bastien,
If i plan to apply for the freelancer ID as a second job, is it the same process as you describe above? I have a letter from my first employer approving this. And if in the future a few years down the line, I want to become a fulltime freelancer I can still keep the same ID right?
Thanks
katie
Hey Katie. Yes it’s exactly the same process. The Finanzamt doesn’t care whether it’s only a sid gig or not.
Great Job Bastien. I’m a US citizen and I thinking to travel to Germany as a tourist, however one friend of mine has a maintenance company in Frankfurt and I would like to work for him for a couple months. Once I get my residence permit, which could be the best way to do it ? As a freelancer or as his employee ?
Hey Enrique. You may not work here on a tourist visa. You’d need to either apply for freelancer visa or work visa. It’s usually easier to get a work visa. But it is worth the trouble for just 2 months?
Hello!! first of all thank you for all your help by writting this post! I would like to hear your opinion about something that happened to my husband (swedish guy freelancing in germany):
My husband started freelancing at the end of 2018 because he got a small project just for 2 months, so in order to get it he needed to become a freelancer. He did all you describe in this blog and all. ok.
The thing NOW is: HEALTH INSURANCE.
I would lik to hear your opinion because we are a bit lost. He got paid 11,300 euro for the 2 months, We have been covered by AOK insurance since 2016. Yesterday we went to AOK to find out how much he needs to pay for the 2 months and they said: 1600 euro for 2 months. it means 800 euro each month which acording to a lot of friends and people is excessive and looking wrong. We dont know what to do or who to ask. So I would like to know if you know a little bit about how to calculate this because we were told by a lot of people that maximum they could took is 650 (which is also insane).
Thanks in advance.
Jessica + Gustav.
Hey Jessica. Hard to say on such little details. If you are already at AOK, does this mean he is an employee some place else? I also don’t get why they would quote 800€ since the maximum amount per month is around 635€ as per listed there for example..
Hi. Good post! I read it several times… Uufff, it is not so easy to get a steuernummer as a freelancer. I was at the Finanzamt today and the guy was rude and didn’t help or answer any of the questions. I am freelance poker dealer and this doesn’t exist as freiberuf. But, how? I have been doing this all the time, before I moved here in Germany. Is there any other expression that would work? Or who should I ask for help? At Finanzamt they said they are not there to help.
I have another question. If I find a job in a company, will I get the steuernummer? How? With the same fragenbogen? And, does the same apply for the teilzeit job?
I would really appreciate your help. Have a good day/evening/night.
Hey Mateja. If your profession doesn’t qualify for Freiberuflich, then you are probably Gewerbe in your case. If you are also an employee, the Finanzamt will probably let you use the Steuernummer for both (that’s my case).
Hi Bastien! Great article, thanks a lot! I have a naive question…what happens is the case of getting unemployment benefits? Can you get them and still work in a mini-job and/or as Freelancer? Do you know the current rules by any chance? thanks again!
Hey Lilou. You might want to check this post on the topic. It is there towards the end of the post.
Hi,
I’m a master student in Germany, I am about to finish my master in a month or so. I did a project for a company four month ago, and meantime I’m working in another company as my student job. Now, I would like to ask two things.
1- Am I eligible to work as a freelancer?
2- Should I charge the company which I’ve done a project for them in my invoice? If so, what type of tax is this and what would be the rate?
I have my Steuer-ID as the company asked for it to pay me.
Best regards
Hey Ali. 1- Yes, unless there is some visa related situation i am not aware of. 2-It’s up to you to decide. If you decide to bill them as a freelancer, the info is in this post.
Hi there,
I am a US citizen applying for a freelance visa as an artist.
Is it possible to have a small day job also? Do I need to do anything specific if yes?
Hey Nathan. Have you looked at this yet?
Thank you so so much! Great job!! <3
Hi, is it really necessary to have a VAT number to be able to invoice customers in the EU. Outside of Germany? I have understood that the kleinunternehmer statement is also valid for those cases, informing EU customer that the freelancer is exempt of VAT invoicing.
Hey Kati. yes.
Is there a blanket rule that if you have only one client you cannot be called a freelancer? IF yes then will a mini gmbh suffice? and can i keep mini gmbh as sideline business if I get a fulltime work in future?
TIA
Hey there Aj. If you only have one client, this might be considered “Scheinselbständigkeit” (Pretend-self-employment), and that’s not allowed. You can combine self-employment and employment as you wish, provided it doesn’t add up to more than 18 working hours in the week.
Hi. Thanks a lot for the detailed article.
But I have a doubt regarding international money.
What would be the tax from payments through PayPal or other services?
How is tax handled with funds in form of donations?
Thanks!
Hey Raphael. It doesn’t matter how the income comes to you, it all needs to be declared and qualifies for income tax.
Hi BASTIEN. My name is Max and I am a graduate student in Texas about to finish a degree in TESOL – teaching English to speakers of other languages. I am also profound-sensorineural deaf (completely deaf).
As a deaf educator I would like to work as a freelancer in Germany producing illustrated sign language English books for deaf children in Africa.
May I request your advice as to whether I qualify for freelance work?
I know I will get paid by donors who need to distribute useful books for deaf children and adults and should make a minimum of $12,000 a year.
In addition I make 20,000 a year in the united states as a graduate assistant (online work).
Could you advice me? I am starting at zero here and have been reading and re-reading your articles. I am 44 years old now and will be 45 next August. Does it mean denial?
Hey Max. Since you will be producing books, it does not qualify as a teaching activity, even though you produce teaching material. Thus, you’d probably be a business/Gewerbe. As for the rest, if you are talking about visa application, i don’t think age is considered in your application; you only need to prove your economic value to Germany and your means to achieve it.
Hi ! I am considering becoming a freelancer in Berlin. I’m considering working as a translator, German teacher and artist. To what extent does the official feelance activity descrpition have to be precise ? Can you change this afterwards ? Any problems with being vague ?
Hey Patrick. Yes, it needs to be precise because as an artist for example, you’d be considered Freiberufler, but maybe not as a translator.
Hi Bastien!
Thanks a lot for this post, it’s really helpful.
I have a question… I am a Graphic Designer based in Berlin and thinking about becoming a freelancer, my question is… Do you know if once you turn into a freelancer you can’t work anymore in a full time job?
Thanks in advance 🙂
Hey Estefania. You can do both at the same time. The only theoretical limit is the maximum working hours per week, job and freelancing combined, of 48 hours. But hey; who’s going to check how much you work on the side?
Hi Bastien
Thanks for this article.
I’d like to know how this situation applies if you’re a digital nomad. I’m from Edinburgh, based in Berlin, but I stay in Airbnbs or sublets when I am here. I work as a graphic designer and video editor. Should I avoid having German clients since it seems they would expect I have a VAT number and the official papers you describe? I also sell digital products from my website – is this the better way of creating business with Germans? Better to have them buy my courses and not do client work at all? Thanks for any help you might have.
Hey Simon. It all boils down to where you can be considered resident. As a physical person, this determines where your business is based usually (unless is some odd cases like e-residency in estonia). In turn, this defines what rules you must follow when making business abroad. But surely, you already have a EU-VAT ID anyway right? Regarding your website sales; they don’t have to be tied to you as a person, you can make a different company to handle this part, if that makes you life easier.
Hi Bastien.
Thanks for helping us thru not only bureaucracy but also the language barrier.
Its my first time declaring tax and seem to have gotten some things wrong, so now the finanzamt are asking question to which Im writing a detailed overview of al the ins and outs.
Got one question (I hope u didn’t answer it already). I work as a freelance musician 100%, I have a private health plan, can I declare my Health insurance as an expense?
Tx Again
Ricardo
Hey Ricardo. Yes.
Hi. Very good post. thanks a lot. I have a question about ‘Cost of childcare’. What do you mean. What can be deducted under the Cost of childcare?
Hey Vladimir. I mean baby-sitters, Kindergarten for example.
Hi,
Using the website freelancer.com, how does it work? Because I saw that the website already charges the VAT for each project that you are awarded and also you can do jobs for everyone around the world. Even if I take some small activities (earning less than 8000 euros per yer) that are out of my professional education, do I need a specific visa for this? (I’m already living in Germany with a valid residence permit that allows me to work). Also, do I need to register at the Finanza like a freelancer? Just to be clear, it is not regular, it is occasionally.
Thank you.
Hey Aline. Even if only occasional, any income should be declared to the Finanzamt. Regarding what you visa does or does not allow, i can’t really answer on such little details. On your residence permit (Aufenthaltstitel), see if there is “Selbständige Tätigkeit gestattet”. That means it’s authorized and you can also register at the Finanzamt, Regarding VAT, i don’t know how this platform operates.
Hello, thanks for the post. Is it possible to combine a full time job and a freelance activity? Does it change the process to register the freelance business? Thank you
Hey Loic. Yes, it’s possible to combine, it doesn’t change the registration process.
Hi! These material is really helpful. Thank you very much for posting all these information.
I’m an EU citizen and I’ve arrived recently in Berlin.
I’ve already found a part-time job (with a formal contract) and also I have the oportunity to work as a free lancer ( that means to issue invoices for my services). I want to conciliate the both ativities. I’m wondering how would I manage the of tax payment criteria and self employer registration. How does it work in this case?
Thank you for your help.
Hi Lucila. you can have both a part-time employment and a freelancer activity at the same time. Income tax will be taken automatically from your payslip for your part-time job and for the freelance stuff, it will work as indicated in this post.
This is gold! Thank you!
I have a small question though.
I have a possibility to do some freelance as an artist for 2months. Already exceeded 17500Eur earnings with a full time employment contract for the first half of 2018.
1) If I would make those 2 month freelance (no other employment parallel). Do I need VAT registration at this point, and sending monthly declarations to Finanzamt??
After those 2 months I will go on full time employment again , so it is rather a one time parachute jump:)
Regards,
Zbig
2)If then I jump back on full time contract
Hi Zbig. If i’m correct, you won’t be crossing the 17500€ threshold with your 2 months freelancing, so you can use the Kleinunternehmer regelung. Your income as an employee doesn’t count.
Thank you for the superb post! This might be a very silly question but is it OK to have a regular job, a mini-job, and work as a freelancer when the freelance income doesn’t exceed the taxable €8,820? It makes me wonder since it’s not allowed to have two mini-jobs…!
Hi Maja. Honestly, i have no idea, even after a bit of researching just now. Sorry and good luck !
Dear Bastien, if you could answer me I will appreciate it!
I have a full-time job, but I also earned some money on the side (around 1.000e between March-June).
My friend’s tax advisor told me that if I will keep it under 2,400e I don’t have to pay taxes on that extra income, so I just created a simple invoice billed to USA address. But is this amount also including my monthly salary from a day job?
However – lately I’m thinking about starting my own site where I will provide opportunities for collaborations (artist management). I will receive 20% of the amount that an artist will earn based on the gigs I provide or art sell. Can I register as freelance or this has to be as a business then???
I would also like to sell their artwork through page but if that would stand on the ‘freelance’ way to register then i would skip it.
And how I can deal with those invoices that I’ve created without registration?
Thanks for the help!
Hi Agniezska. You’d need to register as a business then. As for the rest, better to trust your tax advisor on these matters.
Hey thank you for such a great post it’s very helpful.
Ok so I’m working a part time retail job and I am planning on starting a one man little clothing brand. Meaning I will design and make all pieces myself and sale them online and to retailers. So do I register it as a company (, self employment) since I’m working from my house can I claim part of the rent and bills ie Gas and electricity back from my taxes also I
Hi Ayrene. Yes, this would be a Gewerbe. Yes, you can claim part of your rent as expenses, although you’d need to have a dedicated room as your workshop/office to make it work officially, in case the Finanzamt checks.
Thanks for the good info. I have qualified for a visa in Germany because I got a contract with a company as a massage therapist but I would also like to start an online business selling artwork… prints,originals online. Would that be qualified as freelance or would it have to be a Gewerbetreibende ? If I had to maybe I could just register the business in the US and do it from here…. Thanks so much for your time!
Sincerely,
Luke
Hi Luke. This would be Gewerbe.
Hi Bastien,
I’m in the process of putting the freelance forms together for the visa. The question I have is do all materials provided need to be translated into German? I’m seeing this is needed for the Letters of Intent and Reference, but not specifically stated for the CV, Cover Letter, Finance Plans etc.
Thank you!
Emma
Hi Emma. This is probably the safest way to go.
Thank you!!
hello Emma,
i did all this.
All in German. English will not be adviced as these paper will go to Immigraton office. Is different if you talk to a client which will not matter your English.
I am spanish speaker and got to translate with an official translator all documents. got to notazide and make apositlle as well to make it valid abroad your country.
Hello Bastien,
I am in desperate need of help, i have tried speaking to tax advisers but they keep telling me different things. I have posted messages on facebook also but everyone keeps telling me different things.
I am getting a good opportunity to work in IT for a company in Germany.
I have spoken with a specialist German tax adviser in the UK. He advised me that i will not be considered as a freelancer by German authorities unless i am working for more than 1 client in Germany, he also said that both the client has to be a German registered company.
I understand that i can save paying social security if i am a freelancer.
Do i have to pay VAT on my income?
Cani claim back living expenses?
Can i claim back food expenses?
Can i claim back air travel to UK, my family is going to stay in UK?
Can i claim back for local travel to work?
Do i have to pay social security?
I understand that i have to pay for medical insurance
Do i have to pay solidarity charge?
Do i have to pay corporation tax?
Do i have to purchase indemnity insurance ?
Do i have to pay church tax ?
Do i have to pay additional charges on money transfer from EUR to GBP, what difficulties i may face ?
Are there any additional/other charges i must be aware of?
Regards
Pankaj
Hi Pankaj. I cannot replace the advice of a professional consultant, i’m afraid. It’s best your take your questions to someone qualified to answer them.
Hello,
I recently received an artist visa in Berlin for two years. I am looking to work for a cleaning service part time as supplemental income on a “freelance” basis. I know some other people on artists visas who do this but I am worried about doing a “freelance” job that is not a part of my visa description. How risky is this if I am making sure to keep everything documented, paying taxes, etc. if I am audited in the future or when reapplying for my visa. Thank you
Hey Ciarra. Unfortunately, visa issues is not a field where i am knowledgeable, sorry. I don’t want to lead you into a bad situation. Good luck.
Hi Bastien, great post!
I have a bit of a specific question:
Do you happen to know if you can be a freelancer in Germany, if you live in Germany, but also have a full time job in another eu country?
I am asking since I got a new job in a couple of months, but need to bridge a period, and will only to move to the country with the job in the summer.
(will travel back and forth in the meantime, so kids can finish school in germany)
Hi Stuart. There is nothing against this i suppose but make sure that everything in order regarding taxes and contributions.
Hi Bastien,
Many thanks for your detailed introduction about how to be a freelancer. I am studying a Master programme in Germany. I would like to try to stay in Germany and to look for a job. I would like to ask:
1. Can I apply for a freelancer visa after studying, if I don’t have any freelance jobs in the beginning? if yes, how long can I stay in Germany?
2. If no, what ways can I try to stay in Germany to look for a job? Is there a minimum salary per month that I should fulfil?
many thanks again!
chan
Thank you for such clear post! I am Indian and here with my husband who is on work permit in Germany. I am getting freelance opportunity to work as a online content writer for firm in India. I have couple of questions: 1. Is it mandatory to add VAT to the invoice if i am billing to company outside Germany (in this case: to Indian company) or is VAT exempted if goods/ services are exported outside Germany 2. Currently i am covered by my husband public health insurance. At what income level do i need to have my own health insurance. thank you!
Hi Ujjwala. VAT is not due to services and goods delivered outside of Germany, unless you do a lot of business and earn more than a certain threshold in that country, then you might need to apply for a local tax number (in France, that would 100,000€ for example if i’m correct). Health insurance is mandatory, regardless of the income level.
Hallo Bastien. I will be contracting for 6 months from Germany for a company in the UK and I will earn around 27,000 Euros. Do I need to add VAT to the invoice?
Hi Barry. There are exceptions to this depending on your trade but that’s the rule to not bill VAT yes.
Hi, Thanks so much for this useful and informative post.
I have a few questions if you can help me out…
-Can you claim 100% of health insurance costs on the tax return? 350 per month sounds like a hell of a lot to pay as a freelancer, but if it is deducted off the tax you would pay then I guess it’s not so bad!
-If you have a part time job that pays your health insurance then how does it work on the extra income you get as a freelancer?
-Can you claim for space in your house that is purely used for work, i.e an office.
-As an artist that offers creative services and consultancy, but also has a small online shop that sells mass produced items, do you need to register as Gewerbe and freiberufler?
Many thanks 🙂
Hi Mel. Health insurance will be accounted for as expenses when doing your tax declaration for the year. When you have part-time and a freelancer gig on the side at the same time, it’s the occupation that earns the most that pays for the health insurance (ie: if you earn more with your job, that’s what pays your health insurance). Yes, you can claim a room to be used for work. If you have a shop, yes you need a Gewerbe, refer to the article again.
Hello, as a freelance artist and illustrator are we allowed to put artis materials and supplies as expenses? Such as paint and paper and pens etc?
Hi Lily: yes.
Hi Bastien. Thanks for your insightful post. I’m considering to follow a career path as a freelancer in Germany. I live here since +-3 years, married and about to graduate as a MSc of Management and I’ve already worked 1 year in Germany. It means also that, as a foreigner, I hold a valid work visa, I’m health insured and etc. Is there any particular difference between a freelancer and a consultant in Germany? Sorry to ask but it really confuses me.
Hi Amyl. As far as the authorities are concerned, they don’t care if you are consultant. you just have to make sure that if the field you want to work in requires you to have a Gewerbe or be Freiberuflich (see definitions in the post).
Hey, thanks for all this wonderful info, it has helped me a lot to reduce the anxiety of becoming self employed. I’m leaving my Job in an art studio in order to become freelancer and due to the current state of the market (I have spent 5 years in this studio) I’m going to need some time for catching up and work on a competitive art and client portfolio. In Spain, where I’m from, there is the case where you can capitalize your unemployment money in to your business, my question therefore is whether is there something similar in Germany where I could use that money to grant me the much needed buffer time. Thanks in advance!
Hi Iosu. In Germany, the “Gründerzuschuss” is probably what you are after.
Hello Bastien
Thank you for this grate and useful blog.
I have signed up as a freelancer and declare that my income will be less than 17.500 Euro per year. I got my tax number and started with giving invoices with the sentence that I’m not charging/paying VAT.
Now i got a letter informing me with a VAT number. Is that means I do have to pay VAT? (although my incomes are low..)
Should I ignore the number?…
Thank you:)
Hi Alina. You need to insert your VAT number or Steuernummer on your invoices, even though you are following the Kleinunternehmer rule. It doesn’t mean you are paying it.
Thank you very much for the post! I understood that Freelancers cannot sign directly contracts with companies, they need to use a consultancy company as intermediate and this is requested by German law. Is this accurate?
Hi Maria. I don’t know where you got this from but this is first i hear of it and believe it to be innacurate. Is there a special rule for the industry you are working in?
Thank you! Plenty of gratitude sent to you for taking the time to write this post.
Hi Bastien! Thank you for sharing these super useful informations and helping the freelance community 🙂 I am moving to Berlin from the UK (where I am the director of a LTD company) in 10 days but I will keep my business open in London until April. How long does it roughly takes to register as a freelancer in Berlin? I want to be ready to start working right after I close my UK company and want to start the german paperwork as soon as possible. Thanks 🙂
Hi Vanessa. Since you are (still :S) an EU citizen, you only need to complete the prerequisites mentioned in the post before you can register as a freelancer. One of them if to have registered address in Germany, which requires to find a place. That alone may take a while. It’s hard to reply to your question then. The registration itself is a matter of days until you receive your new tax ID number.
Hi Bastien,
I am a freelancer, will be providing business consulting services to clients in the UK, EU and Germany. What is the best way to approach the VAT situation? Also, I am a consultant in digital banking services and as such, I have opened up three business bank accounts, but will only be using one for my banking. Is it okay to just submit these bank details with the annual tax return or do all bank accounts need to be submitted?
Thanks!
Hi Meaghan. I don’t know what you mean by VAT situation. You won’t bill VAT to EU clients when doing businesses with them due to the EU rules and you will bill VAT to German clients. Concerning banking; yes it’s fine.
Hi Bastien,
Thanks for the very informative guide!
I wanted to kindly ask – what would you recommend for me in case I am already fully employed and I want to make some very small cautious steps into the freelancing world during my after-hours or weekends, at the moment without really quitting my job?
Do I need additional health insurance besides my public one from my day job?
How do I avoid paying for a tax consultant (I don’t trust my German enough to tackle a tax declaration on my own) assuming I’m not expecting a big income for 2018?
Hi Guy. You can use the platforms recommended on this post to do a tax declaration on your own and in English. You can have a Nebenbeschäftigung (side gig) with health insurance from your day job. However, if you make more money with this than with your job, you will have to take your own health insurance.
working as freelance IT consultant since August 2017. I opted for self billing invoice i.e invoices are generated by my company.
For August work, invoice was generated in September and actual payment only in October.
Similarly for September, October and November work invoice generated in December and actual payment will happen in January 2018.
How to declare VAT and do VAT payments in these cases? I also have small expenses every months.
Not sure whether VAT declaration has to be done on Cashflow basis only. i.e., even if there is no payment in August, should i still declare VAT for my expenses alone? Or should it be done on Sales basis i.e., for august should i declare both VAT from sales and expenses even though it was actually paid in October?
Thanks for your help.
Hi Suppada. There are different rules that can apply: either you declare the VAT for when you received or payed the money, or when the ingoing or outgoing bills were generated.
Hi Bastien. Between the Umsatzsteuer and the Einkommensteuer, which one of these tax number I should indicate while preparing an invoice for a client? The invoice is without VAT as I’m a kleinunternehmer
Hi Bastien,
Thank you for information.
I want to become a freelancer in Germany.
I just wondering, for IT specialists, need i have university diploma in IT to open “freiberufliche” ? Or higher education diploma is not necessary in my case.
Thank you.
Hi Cyril, IT roles are not protected by any specific diplomas, you can start as a freelancer without an Abitur if you wanted. 🙂
Hey! Thanks for the info, super helpful.
I’m tossing up whether I go for the freelance visa or the employee visa as I am working both for a company and as a freelancer. If I were to go for the employee visa, do you know if I would still be able to do freelance work?
Cheers, Lewis.
Hi Lewis. As an employee, you are also allowed to have a freelance side-gig (“Nebenbeschäftigung”), as long as you don’t work too many hours (but who’s there to check, hey?). I suppose it would be possible yes then, but maybe there are special conditions attached to the employee visa that could prevent that. Make sure to check that.
Hi Bastien, this page is so helpful, thank you! Could you explain a bit more about the “Nebenbeschäftigung”? I know that if you earn less than 400 euro per month it’s not taxed, but do you know if I still need to register a separate tax number for the Nebenbeschäftigung? And do I need to declare the income at the end of the year even if it is less than 400 euro? Thank you, am finding it hard to find straightforward information about this!
Hi Hayley. No you don’t need a separate tax number. Yes you need to declare it.
Hi Bastien,
I was wondering if you’re allowed to start work straight away after filing the freelancer registration with the Finanzamt or do you need to wait until you have received your new tax number in the mail.
I have a contract to start work soon but have not received my new tax number yet, but I figured this would not be a problem as I don’t plan to invoice until the end of September.
What’s your opinion on this?
Hi Tegan. In my opinion, you can probably start to work before but the billing can only start after you are properly registered and everything.
Hello Bastien! Thank you so much for such important information!
I have a question about the monthly basis steuer payment… I registered my Gewerbe-Anmeldung and now is the next step fill the steuer formular?
I will work in a third part contract with Hays for another company, and when I called the Finanzamt they said me to do the Gewerbe registration and all after this would happens “automatically” (because I already have a normal steuer number)… So I am a bit lost because I never worked as a Free lancer before and your very helpful page said I must to register myself in the Finanzamt and pay the monthly… Can you help with this doubt? Should I begin to pay them before have my first contract? And how itt works in this case? Thank you so much!
Hi Eleodora. Be sure to differentiate the different types of taxes and their installments. we are talking here about VAT, which you must transfer monthly to the Finanzamt in the early days, if you decide to not take the Kleinunternehmer rule. You collect VAT through your bills so you only transfer to the Finanzamt afterwards.
Hello,
Thank you for your post, it is very helpful.
I have a question. I am a Civil Engineer with a residence and a working permit here in Germany (come from a non EU land). I have a full time job as Engineer in here in Germany. Is it possible for me still to work as a Freelancer (additional 40-50 hours monthly)?
Hi Tomas. It is possible to be a freelancer as a Nebenjob as long as you don’t work too many hours (in theory, no more than 2 extra hours per day. Source.). However, since you are on a working permit, you need to make sure your full-time job contract allows this as it might be reason for termination. In general, your employer should be aware of and authorize any side project you are working on.
Hello!
I got a contract to work as programmer for a startup, only 20 hours a week. The thing is that i dont have a degree in computer sciences (Im studying the degree online and ill get my diploma in 2 years). I have lot of experience and the german company really wants to hire me! Do you think that imma have a problem in the application? any suggestion
Hi Sebastian. I’m not sure i get your concern. You already have a contract offer from that company. Should that not reassure you on your chances?
I think what Sebastian means is, he’s found freelance work as a programmer but is worried he will not be able to register as a freelance programmer without a degree. I’m in the same situation – do you know if freelance programmers need a degree or are they one of the professions that is exempt from this requirement?
Hi Harry. I’m not an expert in visa issues but to my knowledge, programming is not “protected” by a state recognized diploma, like being a lawyer or accountant for example so i don’t think it’s a problem as long as you show you have enough business in Germany.
Thank you very much for a wonderful post. I have resident permit in Germany and doing full time job but I am not allowed to work as freelancer. I am married. My wife has work permit in Germany too and allowed for freelancing. She has an Youtube account and earning a good amount. So, she want to withdraw that money and declare her income. How it will be complected for us? She also doing a mini-job. How the income tax will calculate for us? Thank you.
Hi Khaled. I’m glad you liked the post. Have you seen this post on the matter of income tax?
Thank you for your reply. I have seen the post and its helpful as well for me. We may be belongs to the second category. If you have no problem, could you please suggest any tax consultant office or lawyer based in Hannover that would be helpful? Thank you very much again. Its really a very helpful blog.