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.
Once your registration is complete, you will receive your new tax-ID (Steuernummer), which you will put on all your bills from now on.
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).
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% of what you earn, with a legal minimum monthly fee of about 350€. 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. It is recommended to meet a broker or use comparison platforms such as Tarifcheck or Preisvergleich.de to find the best fit and the best price.
Good to know
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 (Normally. 19% or 7%, temporary 16% or 5% from July until December 2020, because of Corona). Here, you can deduct the amount of V.A.T 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 V.A.T on your invoices, but you can’t deduct V.A.T 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 V.A.T 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.
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 2021, this amount was 9 408€ 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 May 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.
- 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
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 all the following items to be valid:
- Your full name and address
- Full name and adress of your customer
- Location, date and unique ID of invoice
- Your tax number (Steuernummer)
- Description of goods/services, time of delivery & when payment is due
- Net price & discounts if applicable
- Added tax if applicable (If not; mention the Kleinunternehmer rule § 19 UStG Paragraph 1)
- Total price
You can find a pretty nice excel template on this website. You can then edit them to fit your situation and your looks.
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. This is a little selection of bookkeeping software for freelancers in Germany:
- 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.)
- Debitoor: Also, a trusted name in the German market and internationally and my personal favorite. 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).
- FastBill: A great contender on this list, FastBill is great at keeping an overview of the current affairs in a slick interface. You can also use different ways to receive your money and manages international business too. (From 9€ per month – Interface in English – Free trial month)
- Reviso: Formely know as e-economic, it’s also making a name for itself with its KPMG-certified software. Unlike its competitors, the different prices and plans don’t limit features but simply the amount of entries. (From 10€ per month – Interface in English & 6 other languages – Free trial month).
- Zervant: A simple to use tool to manage your invoicing. It only does that but it does this well and most of all: it’s for free.
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) here.
Other resources to consider when becoming a freelancer 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.
FAQ & Notes
Can i combine a normal day-time job together with self-employment?
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).
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.
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
Thanks for this amazing article. I’m a software developer, and I would like to start a freelance (and yes, I live in Germany, Berlin). Thing is: I have a single client in US. Will it be legit to work with a single client for another year, if it’s not a German company?
Hey Oleg. My opinion on this matter is since you are already working with this client (I assume that from your comment) is that it might rise suspicion indeed. However, since your client is based outside of Germany, this company could not be avoiding taxes on your account anyway. That would probably be fine but make sure to ask a professional if you want to be 100% sure.
Hi Bastien,
Happy New Year!
I am interested in the profession of Virtual Assistant.
I did not find it on the list of Freelancing. Do you know if it can pass in this category?
Also with a part-time job, how many hours am I allowed to work on a side job(Freelancer or self-employed)?
Thank you very much!
All the best,
Silvia
Hey Silvia. Try to find what the category would be for a regular assistant. That would apply here. This answers your other question.
Hello Bastien!
You have explained all in details. Thanks for all of this. I am non EU student doing Masters in Germany. Meanwhile in last 2 years I have been teaching international students from USA and UK for learning Engineering softwares or in what they need help with. I have income potential of 20K€-30K€ per year right now. My study is about to end. Do you think I qualify for Freelancer Visa if I apply for that. And will I need a lawyer or is it simple to do by self.
Hey Waqas. I can’t really answer this question accurately because it depends on multiple factors. You potentially qualify yes. See dedicated post here. However, since you are graduating from a German university, I would take advantage of the benefits it gives you and apply for a work visa or blue card instead, with freelancing allowed on the side too. In the current context, it might be a good option too. Just an unqualified opinon though.
Hello Bastien: Happy New Year! and thank you for your very useful information and advice. I am a 50-something UK citizen (self-employed status, with very modest earnings in a mixed bag of work – administration/performing/modelling) and have just arrived in Berlin to settle. The main complexity for me I feel will be with tax affairs, as I will keep working in the UK as well as in Germany, and some of my administration work with UK clients to continue remotely from Germany! Do you know if I can be a dual tax resident, or must I put everything through the German system? Do you perhaps have any experience with this sort of thing? Many thanks. Jeremy.
Hey Jeremy. If you are to have residence in Germany, any and all income needs to be declared in Germany, regardless of its origin. In all likelihood and excluding rare edge-cases, you will be liable for taxes here only (unless some ruling speaks against this on the UK side). Good luck with it all.
Dear Basten,
Thank you for detailed and useful information. My husband and I are both art painters and have permenante resident of Italy( have MFA in painting from Accademia di Belle di Arti di Roma). I wonder how we can move to Germany as artists and change our italian residency into German residency? Are we considered as freelancers by selling artworks?
Thanks and wish you a wonderful happy new year
Hey Shirin. I would suggest to talk to an immigration specialist but I doubt you can convert your Italian residence permit into a German one. Artists are considered freelancers yes (Freiberufler).
Hi there, I have a full time job and in the meantime I got the offer to work as a freelancer, the gigs are definitely more than 18 hours per week, I don’t have my company approval because its really not interfering with my current job, I mean I haven’t asked for it yet, so my question is can my current employer see through my taxes that I have a side job, because most probably this additional earnings will impact my taxclass, considering I will be earning more..
Hey Annie. Nope, they can’t see that information. And if you do change tax brackets, it could be for any number of reasons in theory.
Hi Bastien,
Thank you for very much for an excellent blog post. Comprehensive but then again easy to read.
This is the first that answered most of my questions. However, I would still have one more.
Can I be/have at the same time:
– Full time employed (40h per week)
– Freelancer – programmer with occasional gigs under conditions of 18h per week, and with written permission from my employer (as you explained that part well)
– and Registered Kleinunternehmer business that will undertake trade of certain goods or equipment?
Thanks for your answer in advance!
Hey Nebojsa. Yes, that is possible but your employer needs to be aware of everything, even the trading business.
Hi Bastien, Thank you for the well described and detailed explanation on becoming a freelancer in Germany. So I plan to start as a freelancer in Germany with my Niederlassungserlaubnis. I have been getting project offers from outside of Germany but within the EU. Can I as a freelancer in Germany take these projects? I wont be employed, I would have a model service agreement with the client, so do I still need to take a work permit in the EU country?
Hey Ami. As a permanent residence permit holder, there are no limitations to the type of clients you can engage with, within or outside Germany.
Hi Bastien, thank you for the article. I have been offered a freelance contract by an EU company (not registered in Germany), and I currently have an 18 month jobseeker visa for German uni graduates. I am a little confused about the Steuernummer, invoicing and contracts:
– Do I need to first obtain a Steuernummer before signing a contract/beginning freelance employment? Or is it sufficient to get the Steuernummer after starting work, as long as I still report and pay taxes on this income from before I get the Steuernummer?
– Do I need to invoice the company/client if I have a signed contract of some sort?
I also understand that this could be construed as Scheinselbständigkeit; however, initially I am only going to have one client until I get more projects, and given the pandemic, I’d like to start earning as soon as possible.
Thanks for your answer in advance!
Hey Rip. First, check if your current residence permit allows you to register and work as a freelancer. I’m not sure it’s the case. You can start to bill as a freelancer as soon as you are registered and have a Steuernummer to put on your invoice. Yes, you need to invoice your clients in all cases.
Hi Bastien, Thank you very much for sharing your in-depth knowledge, it really really helped. I have recently received Niederlassungserlaubnis after spending 3 plus years on Blue card and I would like to know whether I have to inform ausländerbehörde if I would like to switch to freelancer from my regular employment. Or just getting a new “Receive your new tax-ID (Steuernummer)” is enough. Additionally the link you shared for “Sorted’s easy to use registration tool (100% English there)” doesn’t work?
Thank you very much again for your tremendous efforts.
Best regards,
Saransh
Hey Saransh. If you have unconditional permanent residency in Germany, you can start a business or become a freelancer without referring to the Immigration office at all. Thanks for letting me know about the link. It’s fixed.
Hi Bastien, thank you very much for your information provided. I am new in Germany and lately it has been very difficult finding a job. I’ve started to participate in smaller paid surveys and software testing online, mostly paid through PayPal. This year I have earned about €1500 … so how will I be able to register as a freelancer when I don’t get any invoices?
Hey Maria. How about you can make those invoices yourself, from you to whatever platform you use?
Hi Bastien! Thank you so much for this post, it was very useful and insightful.
I studied archaeology, a very interesting, amazing and useless career, specially in 2020. Lately it is been very difficult for me to find a job, and I was wondering if it is possible and legal to become a freelancer and work in many and diverse jobs (for example, writing technical texts, managing the social media of a company, walking dogs and as a web developer).
Honestly right now posting my comment here seems like the best opportunity I have of getting a simple and direct answer.
Thank you again!
Hey Raquel. Yes, it is possible.
Hi Bastien! This is the best overview I’ve found so far and it has been very helpful. I have a full-time job and would like to register a small business on the side. I have understood that health insurance is covered by the main employer but what about the income tax, do I automatically go above the 8 652€ since I have another income? So I have to pay income tax on my side income starting at 1€ right? Thank you!
Hey Marie-Claire. Income tax would then be calculated as a whole with both your salary and your income as a freelancer together. There is no separate income tax for that freelancing gig. More info on income tax here.
Hey ! Thank you a lot for doing such a great job educating people to which I personally belong on such important questions!
I would like to ask about some tax issue: Can I apply for a 3/5 Steuerklasse scheme, where my husband is Arbeitsnehmer /Angestellte and I am a Freiberufler with minimal income?
Hey Nastia. Yes, you can do apply for that as a couple, if you think that was relevant. There is a dedicated post about this here.
Hi there, thank you for this article. I am employed full time (not related to what I teach) but I also rent a room and teach yoga twice a week. I don’t know what I should register as for tax purposes. I won’t be teaching more than this — maybe a couple of workshops in 2021 but not much more. I really don’t know how to ensure that everything I do is correct. Step by step advice would be most appreciated, Thank you.
Hey Shannon. It doesn’t matter how little you do your side gig, you need to be properly registered in order to bill clients. Yoga teacher can be considered Freiberufler. As for the steps, refer to the guide again.
Thank you Bastien!