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
Hello Bastien!
I have read this article twice now and still am unsure what to do. I hope this is okay to double check and ask. Your article and guide is wonderful, best I have read out there so far, my questions are mainly out of fear due to previous freelance experience in Spain for instance, where fees are never ending and you can get in trouble easily.
Before when freelancing, I had a steady income from it and could afford the accountant and all the fees, now in Germany, I would like to do it properly as well.
The situation is the following, I am an artist and I have done some work for a Swedish company who want to pay me an X amount and require a bill with its legalities. I would like to obviously get paid and keep sporadically working for this person. My question is this, do I still have to register to the Elster platform and declare this?
Another question I have is this: my goal is to work for an employer which let`s say pays 1,500 net a month, but I also want to keep a sporadic freelance activity which does not exceed 8,000 a year. Would this extra activity include in the tax free range on top of my pay or would it be combined and taxed?
Are there ways to do a one off legal payment as well for a single freelance activity? And lastly, if you no longer wish to keep freelancing, do you have to do a special type of operation to close the accounts? Do you recommend to contact a professional for more information?
Thank you so much for your blog, article and time you put to each and one of us!
Have a wonderful day,
M./
Hey Masha. If you do freelance work, you need to register as such, regardless of the amount you make. Your income as an employee & as a freelancer will be calculated together at the end of the year (when you do your tax declaration). Whatever you earn above that threshold will be taxed accordingly, doesn’t matter where you earn that income from. If you don’t want to be a freelancer anymore, you need to let the Finanzamt (and Gewerbeamt, if applicable) know.
I don’t know that this means.
Hi, thank you for all this information. It is very helpful. Im just in the investigatory phases of this process. I hope that perhaps you can help with a couple questions.
1. I am on a family reunion visa (husband and children are German citizens). Is it possible for me to qualify as a freelancer? On my Auslanderstitel -the notes say “ERWERBSTATIGKEIT ERLAUBT”
2. The work I would be freelancing seems to fall across a few categories in the “KATALOGÄHNLICHE FREIE BERUFE” in one of the provided links. I would be doing management consulting and technical work for cartographic, GIS and IT services. Can you indicate how likely it is that these would be approved for freelancing by the finanzamt?
Thank you!
Hello Ginny. 1. Yes. This means you can have a job as an employee or become a freelancer (as also stated here). 2. Can’t really state anything here. I’d make sure to register with the exact title/category listed in this list (only one to avoid any confusion) in order to considered a Freiberufler.
Thank you for the information. A couple of follow-up questions regarding number 2.
1. If I register as a Freiberufler as a Cartographer would I be restricted from providing other IT or Management Consulting Services or Vice Versa? My Certificate is in Geographic information systems and Cartography to which my degree most closely matches to the list of possible freelance occupations.
2. If I have a choice between establishing a business and registering as a free lancer, what factors do you suggest I consider when doing this. I know that I will want to establish myself with the public German Health Care and other social systems. I have the impression that there are more potential tax benefits as a free lancer vs. establishing a business However, with a business I would have more flexibility on the services I can offer. Do you agree?
2. If
1. To successfully register as a Freiberufler, you need to demonstrate a closely related education in the field. Otherwise, there is a chance the Finanzamt will not grant you that status. In your case, you would need to prove you degree is IT, with specialization in cartography I suppose. If it fails, you might have to do Freiberuflich for one type of job and Gewerbe for the other. A long list of related experiences might help. That’s up to the appreciation of your local Finanzamt. Read this source for yourself to know more.
2. In general, Gewerbe comes with the Gewerbesteuer and more bookkeeping duties. That’s the drawback compared to Freiberufler. Otherwise, it’s all about the same concerning health insurance or benefits. You are right, with Gewerbe, the Finanzamt is less concerned with the exact occupation, unless there are some reglementations in your industry (eg: hospitality).
Thank you for a great article! It’s really informative. I’m about to start to work as a freelancer. I have a contract as a freelancer with a company in Germany. How long can I work only for them? I didn’t know before your article, that that can become illegal in freelance capacity.
Does it stay legal if I mainly work for them and occasionally, every other month or so, do work for someone else too?
And is 18h per week or month when freelancing beside a full time job?
Hey Ana. As stated in the post, it will depend on how much of your income comes from them over a relatively long period of time. Having other customers on a regular basis is a good thing indeed. 18h per week.
Hi Bastien,
Great blog! Thank you for this amazing input!
I have a question regarding switching from Kleinunternehmer to Untenrehmer charging VAT. This year I’m going to exceed the 22.000€ threshold, meaning – cosy Kleinunternehmer times will be over for me with the next year. As I understood, I have to start charging VAT with the first invoice of 2022. For this, I need a VAT-ID. I went to http://www.formulare-bfinv.de to apply for one but I got an immediate refusal because I am registered as a Kleinunternehmer. I am a bit confused now. How else the switching process should go?
Thank you!
Hey Agnieszka. Correct, you will need to start charging VAT and pay that to the Finanzamt on a regular basis. I am as confused as you on why they would not deliver a UstID to you. What did the notification say exactly?
Hi Bastien,
this is the result I am keep getting:
Ihr Antrag führte zu folgendem Ergebnis:
07 – Eine Vergabe der USt-IdNr. ist nicht möglich!
Nach den von Ihrem zuständigen Finanzamt an das Bundeszentralamt für Steuern (BZSt) übermittelten Daten sind Sie (noch) nicht als umsatzsteuerrechtlicher Unternehmer registriert.
Mögliche Gründe:
1. Kleinunternehmer
Sie sind Kleinunternehmer und werden beim Finanzamt so geführt, dass das BZSt keine Vergabe der USt-IdNr. durchführen kann (Grundkennbuchstabe). Bitte wenden Sie sich an Ihr Finanzamt, um eine Änderung des Grundkennbuchstabens zu veranlassen.
2. Neugründung
Dem BZSt liegen noch keine Informationen über die umsatzsteuerliche Registrierung Ihres Unternehmens bei dem angegebenen Finanzamt vor. Bitte wenden Sie sich zwecks Erfassung/Klärung an Ihr zuständiges Finanzamt.
Bitte beachten Sie, dass zwischen Registrierung beim Finanzamt und Übertragung der Daten durch das Finanzamt an das BZSt einige Zeit vergehen kann. Erst nach erfolgreicher Datenübermittlung kann eine Umsatzsteuer-Identifikationsnummer (USt-IdNr.) vergeben werden.
3. Die umsatzsteuerliche Führung Ihres Unternehmens wurde beendet.
Aktuelle Informationen zu einer erneuten Erfassung, zum Beispiel über die Wiederaufnahme der umsatzsteuerpflichtigen Tätigkeit, liegen dem BZSt jedoch noch nicht vor. Für diesen Fall gilt ebenso das unter Nr. 2 genannte Verfahren.
I’m afraid I’m at the end of my wits here. A call to your Finanzamt would probably help. Sorry I couldn’t help.
That’s ok, Bastien. Thank you anyway!
Hi,
All those informations helped me so much, a huge thank you!
Only one thing I’m still puzzled about in Germany is about the “Verpackungsgesetz (VerpackG)”.
I didn’t find all the informations I need on their site. I’m an artist (Freiberufler) , I send mainly A4 documents for now ( maybe bigger later) and I don’t really know if that law applies to me. Can Anyone help? Thank you 🙂
Hey Tess. This law has to do with reducing consumer products packaging & recycled material in packaging manufacturing. I fail to see the relationship with you?
Hi Bastien, thanks for your reply 🙂
I mostly want to sell my drawings and paintings through internet, so I have to send them. That’s why I have been told that I had to do that…
Hi Bastien,
I am employed in one of the private firm and i am also an amateur developer. One of my freeware software has got some traction in recent times and i would like to monetise it, I mean not in a perspective to make profit, but rather for earn its hosting cost. So the revenue expected is very minimal (like 300-500 euro per month). So in this case, should i need to register as a company first, before accepting the payment? will this have any impact on my insurance? Does it worth to register a company for this?
Thanks in advance 🙂
and also thanks for this article. its well articulated
Hey Girish. Yes, you ought to register first. Your health insurance will still be covered by your employer.
Hi Bastian, thanks for the very informative article.
You say that it is illegal to become a freelancer in a company that you have been formerly employed. What about the situation when you have reached retirement age but your company wants you to continue as a consultant as it is illegal to continue as an employee?
Is this legal and as a retired person and freelancer what would be the best health insurance option?
Hey Gordon. You can continue to work past retirement age. If you remain an employee or if you become a freelancer, you would not be considered retired, unless you stick to a 450€/Minijob. Regardless of your age, if this company is going to be your sole client, that would be illegal. If you are already with a public Krankenkasse, I’d stick with it, as premiums in private insurance are only going up with age. Does that answer your questions?
Hi Bastien,
Thanks for putting in efforts for writing this article, Very informative and appreciable.
I am looking for transitioning from full-time employed to freelance. I have worked over 2 years for a german company now and i think I would like to start freelancing at certain point in near future. My question is how do i really start?
Should I look for clients first ? I mean do I need a contract before starting process like filling up ‘Fragebogen zur steuerliche Erfassung’ ?
I am insured with TK right now, do I have to change this or can I keep it the same?
Do I need to change my visa? (I currently hold Blue card)
Thank you
Hey Supriya. You have to first check if your current residence permit allows for freelancing but it’s usually tied to one job. You might have to wait and apply for permanent residency first then. As a blue card holder, it should be possible after 33 months at the latest. You can keep TK but you will need to pay your own insurance when you switch status. You could in theory start to work for clients before being officially registered, but you can only bill them once you are registered. Freelance work may or may not be regulated with a contract. It is not required to register yourself.
Hi there
I am an aspiring freelance researcher and consultant from South Africa and have recently moved to Germany in April of this year. I am living on a spousal visa which allows me to work and live indefinitely. Your website has assisted me in terms of setting up in Germany however I would like to know what are the implications of me continuing to maintain a bank account in South Africa and also having work that I do with South African companies and individuals that gets paid into my South African account even though I am doing the work on my desktop here in Germany?
Hey Stanley. Happy to hear the blog was useful. As a German resident, it doesn’t matter where your money or clients are located, you should declare any and all income in Germany. Is that what you meant?
Hi Bastien, I’m a writer and editor who just signed a lease on an apartment in Germany and am planning to move there indefinitely. I have one salaried job that I recently started and also have been working for another company as a contractor (i.e. individual contracts for multiple projects that each last about 2 months and they give me new contracts for the next projects afterwards if I want them). I also take standalone gigs through booking sites here and there if my schedule allows. All of my work is done remotely and is pretty much all US clients. My understanding is that as long as I can prove I am making good money and have savings, etc. it should be enough to obtain a visa even though I don’t have local clients. Is there a problem with me having one job on salary and another (same number of hours) by way of contracts? Would this disqualify me from the Freiberufler visa? I will likely do some work here and there for clients locally once I’m settled and am intending to take courses to work towards fluency in German (I’m about B1 level now) so that I can eventually translate. Do you have any insights or suggestions? Really appreciate any thoughts you might offer! Thanks so much.
Hey JR. Could you clarify: you will have a German employer, based in Germany? As mentioned in the post, you can have a job & freelance gigs too, that’s not an issue (as long as your employer knows about it). As a rule, freelance visas are granted if you can prove you relevance to the local economy. That can be done if your profile is part of the white list of “desirable profiles” and/or if you can prove there are enough German clients waiting for you here in Germany, through letters of intent. This is all covered in the post about freelance visa.
Sorry. 80 hours per month
Ok. In this case, yes you can do more hours as a freelancer. If you have US clients, you treat them as any other foreign customers.
Thank you very much Bastien, for your fast replay. Was really helpful .
Hey Bastian.
Thank you for the article.
Here you mentioned people who work full time can work only 18 hours as a freelancer.
I work part time(teilzeit), 80 hours. Can I do more hours as a freelancer?
And, if my employer pays already my health insurance, do I still have to pay it as well?
Also, if I have internationls clients (USA), do I need to do something different, or to pay more tax?
It would be really helpful if you could help me 🙂
Hey Monica. Can you clarify, you work 80 hours a week with multiple part-time jobs? 80 hours/week sounds really…crazy. As mentioned in the post, if you are employed somewhere, your employer would pay for your health insurance, even if you are freelancing on the side.
Hi! Thank you so much for the article, very helpful!
I have a question, which I’m hoping you may be able to answer but if not no worries!
I am an artist but I want to sell my designs on T-shirts and mugs on Amazon platform. I want to use a print on demand company to print my designs and send them to the customers. Would this be considered as a ‘Freiberuflich’ or ‘Gewerbetreibende’?
And if it is ‘Gewerbetreibende’ do I need a an address with commercial permit? Because I work from home with a normal residential address.
Hey Nora. If I understand this source correctly (case similar to yours), selling your designs on product would be considered Gewerbe.
Oh ok Thank you! So do you know if my address should have commercial use permit? Or can I just give my home address as business address when I am registering my business?
Hey Nora. You can use your home address.
Hi Bastien
Thanks for this information and all your efforts! Really helpful.
Primarily I am looking to work out which employment status I should register under, and which health insurance I would require. My situation feels slightly unusual; it is this:
– Moving to Germany in September 2021 from UK for estimated 2-3 years (all being well)
– Long-term partner (unmarried) of EU citizen
– Continuing to work for my UK-based employer (a UK university) during my time in Germany
– During that time, covered by employer’s travel health insurance
– I would not have any Germany-based ‘income’, which seems to impact both my employment status and health insurance.
I think it’s very likely my role at the university qualifies me as Freiberuflich. However, I will have no German income to show for that status, and will in fact be a full-time employee elsewhere. How to resolve this?
Would my University institutional travel health insurance meet the legal requirements for health insurance in Germany, or otherwise impact on the kind of health insurance I would need?
There are probably other questions I should be asking, but perhaps I’d start there. Any other observations on my situation would be very welcome.
Thank you!
Bob
Hey Bob. I suppose you’d be considered a detached worker/posted worker here. You are however probably not considered freiberuflich, unless you registered as such, but it doesn’t seem so from your description. I suggest you have a look at this source or this source to start with. I just have to assume that past this 24 months rule mentioned there, you’d need to sign-up for a health insurance like this.
Hi Bastien,
Thanks for such a detailed article. It cleared a lot of my doubts. However, I still have a few doubts regarding health insurance and tax, maybe you can help me to get a more clear overview.
To explain my situation, I have completed my studies at a German University and currently, I have a job search visa. My questions are :
1> Currently, I have compulsory public health insurance (TK, AOK, etc.). If I register myself as a freelancer at the moment, do I need to make any changes to my health insurance? or would it affect the amount of health insurance that I am paying currently?
2> If I continue freelancing (less than 18 hours/week) in addition to my full-time job,
a) Would the health insurance paid by my Employee offering the full-time job enough
or do I also need to take into account the income earned from freelancing while
paying the health insurance.
b) How are the takes calculated? Considering that I earn less than 9k Euros as a profit
from my freelance activity, is this income considered tax-free?
Hey there. 1> You can keep your current health insurance provider but yes it will likely cost you a fair amount more than the student rate (i suppose you still have student rate). 2> a) Paid by your employee. b)No, those 9K€ will be added on top of your total income together with the job, when doing your tax return. You will pay income tax on it.
Hi Bastian, for such a detailed article, very helpful !!
My wife is looking for freelancing opportunities as a “Technical Recruiter”. Could you kindly confirm if Technical Recruitment is considered as ‘Freiberuflich’ or ‘Gewerbetreibende’ ?
Regards, Vikas
Hey Vikas, this source (page 10) tells me Gewerbe, if I understand correctly.
Hi Bastien,
Thanks a lot for such a detailed note.
I have a question about the same as my situation is a bit unique.
I have come here on dependent work visa with my spouse and I am still working for my employer which is based in India on Indian payroll and parallely I am searching jobs here as well. I have got a consulting activity for 3 months with a customer and I am planning to register myself as freelancer for the same.
1) Will it be possible to do both ?
2) Will it be termed Scheinselbständigkeit as I will be working for a single customer ?
3) While tax declaration, I am planning to declare my Indian salary I am receiving in my Indian bank account and the consultancy amount I will be receiving here. Is that the right approach ?
Hey Shoby 1) Yes, as mentioned in the post. 2)It’s fine if you work for a single customer for a limited time, it should not be a long-term arrangement, unless you also have other clients as well. 3) As a German resident, you have to declare any and all income, regardless of its origin. So yes.
Thank a lot for the prompt reply dear Bastien. This is really helpful.
Hey there Bastien,
Thanks so much for this helpful article!
I have a question, which I’m hoping you may be able to answer but if not no worries!
I am transitioning from employed to freelance (in part-time employed and freelance) and need to get my Steuernummer.
From what I can tell and the research I have done, the things I will be doing would all fall under Freiberuflich activities (though I am not entirely 100% sure).
Is the correct process that I would Fragebogen zur steuerliche Erfassung and send it off, and then the Finanzamt would check/decide if the activities that I will be carrying out are indeed classified as Freiberuflich?
Or is there some other step that I’m missing?
Thanks again!
Hey there. That’s a good question. The Finanzamt might want to see your Gewerbeschein, in case they consider it it’s a Gewerbe. A quick call to your Finanzamt might be useful to check whether or not you would qualify as Freiberuflich. Good luck.
Hi Bastian!
Truly great article, thanks for sharing!
May I ask if you have experience working with Fiverr as a freelancer in Germany? Do you have any advices on claiming the revenues from Fiverr in Germany?
Regards
Hey Mary. Probably best to approach their freelancer suppport or read their knowledge base about this. I’d have to assume that you get paid from outside of Germany, without any VAT. You would then treat Fiverr just like any other customer based out of Germany.
Hi, Thanks for the article!
just to clarify:
I am an artist. I want to sell relief prints from my own woodblocks. Will it be considered as a ‘Freiberuflich’ or ‘Gewerbetreibende’?
thanks for your help 🙂
Hello Max. If you are an artist selling your own artwork, it’s still Freiberuflich as this source also states.
Hi Bastien,
thank you so much for your clarifying article! I am from Brazil and have a residence and work permit issued by Austria. In theory, I could live and work anywhere in the EU with it (Daueraufenthalt EU). I got a job proposal for a german company, but they want to hire me as a freelancer, on a 1-2 year contract.
Do you know if I can do this from Austria? Or would I need to register all over again in Germany?
Also after reading your article I am afraid this might be considered Scheinselbständigkeit.
What do you suggest me to do?
Thank you so much!
Hey Aline. I am not aware of Austrian rules but I can imagine that nothing speaks against taking a client based abroad, when living in Austria. On Scheinselbständigkeit; you need to evaluate this on your own: is this one client going to be the majority of your business in terms of income? is the working relationship more an employee-employer one? More importantly, if they do try to dodge taxes; is this a company you want to work for?
Hello Bastien, thank you for the comprehensive article. It is very helpful! I have quite a few queries and would appreciate your responses:
1. I want to work as a scientific writer and understand that it will be considered as a ‘Freiberuflich’ as the ‘writer’ category falls under that. Is my understanding correct here? or is it considered as ‘Gewerbetreibende’?
2. Can I register as a ‘Freiberuflich’ without a work contract or is a wor contract mandatory?
2. I want to understand what happens if I receive a ‘Full time contract’ soon after registering (say in 1-3 months) as ‘Freiberuflich’. Can I de-register as ‘Freiberuflich’ then and how easy is that?
Hey Richa. 1. sounds about right yes. 2. Not sure what you mean here. can you clarify? 3. You can deregister yes, or keep it. Super easy to deregister, it’s a simple letter to your Finanzamt stating when you stop your activity.
Hey Bastien! Thank you in advance for your help. I am currently working in a startup and I am considering to do some consultant hours for another one. For this one, I am planning to do a total amount of money of around 600 euros/month and the hours ~1 day/week. Do you know if I still need to register myself as a freelancer or there is any other way to do it? In summary, do you know if there is a limit (money or hours) below which it is possible to skip the registration? Thank you
Hey Jesus. No way around it, you’d still need to register.
Hi Bastien,
I am considering becoming a freelancer, in addition to the full-time job that I already have. However, I might only have one client in my freelancing job for some time. Would this be an issue regarding Scheinselbständigkeit, or not, as I am already full-time employed elsewhere?
Hey Tadej. Great question. I could not find a reliable source about this so I can only offer an opinion. Your main client could be suspected of “Scheinselbständigkeit” indeed but it’s basically fine for some months, as the Finanzamt can understand it takes time to win new clients. Your full-time employment could provide some context if it came to a case & possibly avoid issues but I can’t guarantee that. If you can prove you are also actively trying to get new clients, that would help as well, if it came to that. Hope that is clear.
Hello,
thank you a lot for your article.
I have a question on wether I’d need to be registered as Freiberuflich or Gewerbetreibende for my job.
At the moment I am a Freelance Data Analyst (Data consultant for companies) and I’m already registered as a freelancer.
Starting this year I’d like to start collaborating with other freelancers and bring them into projects I can’t take myself in exchange of a fee from the companies (like a recruiting agency) – the freelancer hired through me would be in a contract with my clients and I would get from the company a percentage on their compensation.
For this set up can I be still a freelancer or do I need to register as a tradesman/business?
Hey Luke. Check this official source for more information on the matter. Your case is comparable. From what I understand, this activity could be done as a Freiberufler, if your qualifications/diplomas matched the job in the first place (eg: Bachelor in Human resources or something like that).
Hi Bastien,
thank you a lot for your answer. I read it, but I’m not sure I fully understood it. It seems recruiting is compared to business consulting and so it can be done while being a freelancers, as to be a consultant you don’t need necessary focus on business administration? Is it correct what I understood?
In addition, I plan to run a mixed activity. Sometimes just being the middle man that finds freelancers, some other times to join the hired freelancers and follow his work (I offer freelance services as well to the client and manage the other freelance work).
If that’s not clear, would you mind having a call where I can explain better and you can provide me with your advice just to make sure I’m doing the right thing. Of course I’m happy to pay for your services 🙂
Thank you a lot again!
I don’t provide consulting services I’m afraid.
Hi Bastien! Very nice article, thanks for the detailed infortmation. I have a question on this topic. Would it be illegal to work only for one client as a freelancer if I also have a small online shop as gewerbe?
Is it ok if i start now to work for this one client(1-2 hours a day) and only after 6 months register as a gewerbe and start my online shop?
Thanks for your help!
Irina
Hey Irina. No, you can have both. No issues there.
hi Bastian,
thank you for a great explanation.
I would like to take a freelance project in IT but I also want to start selling physical goods on Amazon USA. What will be the best option for me here to apply for ? is it freelance? or UG?
thank you
Hey Tedy. You can be a Freiberufler for your IT projects, and have a gewerbe for the rest. It’s possible.
Hi Bastien,
Great article! Thanks for the information. I just started researching freelancing in Germany and I’m struggling a bit. I don’t work currently, looking for a full-time job, and my health insurance depends on my husband. A friend asked me to do a project for their company. It means I should get a tax number as a freelancer but it also means I will have to pay for my health insurance. I don’t want to lose my current insurance, just for one project because health insurance will cost more than the earning and it will not worth it. Isn’t there a way to continue my health insurance through my husband? Thanks in advance.
Hey Irem. Nope. Not in that case, unless it’s a Minijob, but I assume it’s not.
Hello, I work as a tattoo artist. Can I register as a freelancer or business?
Hey Marta. You need a Gewerbe. (source)
Hi Bastien. Thank you for this article, it’s very interesting. I am a housewife now, my health insurance depends on my husband and I want to do Gewerbe, so that I would get my health insurance after the declaration, but I have a question, I want to know if I will quit my Gewerbe ( log out) I must to pay my insurance even if I have no income? . or does my husband’s insurance cover my medium insurance as before? . Thanks in advance
Hey Lima. Slightly confused here: do you want start a Gewerbe or terminate one? I assume the first. Yes, you will need to pay health insurance yourself as soon as you register.
I want know if I don’t have any income ant I terminated my Gewerbe? I can come back to cover my health assurance by my husband or its not possible?
Hey Lima. Yes it’s possible.
Hi, I am fully employed but at 0% due to Kurzabeitand my company allows me to do freelance work. Do I have to register as a freelance/Freiberuflich or can I just use my current Steuernummer? If so, I have a freelance job that wants me to start next week, do I have to turn it down because of this?
Hey A. Yes, you’d need to register as self-employed first.
Hi Bastien,
thank you very much for this enlightening article. I have some questions that I hope you can help me with.
From what I understood, I can be a freelancer even if I work in a mini/part-time job. If mini-job, I have to pay my insurance (public min.350€), but if I have a part-time, that “main” work continues to pay my insurance. This is right?
Another question is, how many hours can I work on top of a mini and part-time job? The 18 hours (regarding full-time) described in the article are per month or per week?
I hope you can help me.
Best,
Sofia
Hey Sof. Regarding health insurance, yes you are right, provided you don’t durably earn more with your freelancing than with your part-time job, as stated in the post. It’s 18hours per week.
Hi Sebastian,
Thanks a lot for all your great effort! Do those 18 hours have to be in the same profession as the one applied to in the freelance visa? Or could it be other jobs?
Hey Marianne. Your visa will mention what you are allowed to do. I can only imagine that it should be for the type of jobs you are qualified for.
Hi Bastien!
First of all thank you a lot for your articles. They are very helpfull and reassuring, step by step we can do it!
I have a question, I’ve applied as freelancer and I was planning to use the “Kleinunternehmerregelung” (Small business rule), but I have some Spanish clients.
Is it necessary to apply for the UE V.A.T. or I can make invoices wiht the “Steuernummer” and only in the case my business grows bigger then i proceed with it?
Thank you, Luis
Hey Luis. In short, it depends on what you do. Here is a detailed post about this matter .
Hello again Bastien!
Can you just clarify, that the ‘Fragebogen zur steuerliche Erfassung’ is NOT also for ‘Gewerbetreibende’, and the Sorted.de service is just for ‘Freiberufler’, not for ‘Gewerbetreibende’ ? I can see that the terms are difficult, when working out the different requirements of the Freiberufler vs Gewerbetreibende. Sorry if I am not understanding your advice properly.
I am actually a Model and Commercial Actor. In the UK, a commercial actor is an actor nevertheless, but I think from what I’ve read, that there is no real equivalent for a ‘Commercial Actor’ in Germany, and they are still classed as having a ‘Modeltätigkeit’, and therefore a Gewerbetreibende. Much as I have tried, I can’t find out more about this, so I will have to proceed on this basis. If you have any tips, advice or suggestions I would be most grateful.
Also, can you clarify that even if I am not wanting to register a business as such, that I still have to be registered as an ‘Einzelunternehmer’, and that means filling out the Gewerbe-Anmeldung form (as you advise), in Berlin in my case?
Many thanks – your site is invaluable!
Jeremy
Hey Jeremy. In case you are sure how to classify yourself, it’s best to call the Finanzamt directly and ask, or else a Steuberater, or even a Getsorted’s customer service directly, why not. Sorted supports both Gewerbe and Freiberuf. You need to fill the Fragebogen in also as for a Gewerbe. First register your Gewerbe, then register at the Finanzamt. If you want to register as sole trader, then Einzelunternehmer is the way to go. There is no incorporation.
Hello!
Great information- thank you 🙂
I am wondering whether a nanny and tutor could be considered under freelance? Appreciate your help!
Jaclyn
Hey Jaclyn. Are you asking if tutor or nanny could be considered Freiberuflich?
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!
Hi Bastien,
I’m looking at registering as a freelancer and initially my only client will be a UK based company (I am a UK citizen with Anmeldung in Germany) with varied hours (21-28 per week) as an accounts admin and I expect to make around 23,000 Euro a year. Would this qualify for freelancing in the eyes of the Finanzamt? I have not worked in Germany in any capacity before.
Hey Sarah, yes but make sure that this would not considered “Scheinselbständigkeit“. Also; I can’t tell you if soon, at least one of your clients must be based in Germany, with regards to upcoming Brexit stuff.
Hello! Just a follow up on working full time + freelancing: how much tax do you get deducted from freelancing if you do this combination? I heard (maybe it’s a rumour) that your taxes increase significantly if you do both: work for an employee and freelance at the same time. What is your experience with that?
Hey Rutz. Not sure I fully understand the question here. If you do both, you will probably earn more than with a single income source, which in turn might lead you to pay more income tax, especially if you go up one bracket. There is no extra tax or anything of the sort. Is that what you mean? In terms of deductions, as a freelancer, you might have more opportunities to deduce expenses which will impact your total taxable income there.
Hi Bastien! Thank you so much for the answer! Much clearer now. I think someone tried to explain to me that it’s better either to have just a full time job, or to full time freelance, than to mix both types of income, because of “higher” taxes (maybe even 6o% deduction from gross income – I guess incl. insurance). But now I see it much more depends of the income tier you are in.
Thank you for clarifying!
Hi Bastien,
I’m trying to book an appointment for a freelance visa as a language teacher. I am Australian and my husband is Italian. When I put this information on the request page to book online, it doesn’t give me the option to go further. Do you know what the agreement is for the non EU spouses of EU mem
bers regarding work and resident visas for Germany? Let me know if and when you can. Thanks. All best Elise.
Hey Elise. Sorry, visa related issues are complex and to be handled on a case by case basis. I don’t have knowledge to share for you sorry. Try to ring this hotline and ask your question.
Hi, what a great post! Incredibly informative and very smooth to read.
I’m Manuel (32) and I’m about to become a freelance B2B content writer/translator after quitting my full-time job. I should fall into the category of freiberufler. I’m also currently enrolled at the FU Berlin.
– How would VAT work in my case? I shouldn’t apply it for what I understood but I’m not sure.
– Could the fact that I’m still enrolled in university be an issue for me becoming a freelance in general or taxwise?
Many thanks!
Hey Manuel. Probably for a start, you can make use the Kleinunternehmen Regelung and not charge VAT yes. You can be a student and also work on the side as a freelancer or as an employee, that is not an issue.
Hello, and thanks for the very informative blog! I am a US citizen and US-licensed lawyer that finished an LL.M in Germany (2016-2017) followed by two years of full time employment in Germany (2018-2020). My work contract, and the work visa that ran alongside the employment, expired on Feb. 1st, 2020. A Fiktionsbescheinigung has been issued and will expire on 21st of October. I have not secured employment in Germany in order to renew my work visa. Recently a law firm based in the USA has offered to employ me on a 100% remote basis. I would like to accept this job, but it is not easy because I am not a permanent resident of Germany and do not know 1) which residency status I should apply for; 2) whether I can be hired directly by the law firm or must be hired as an independent contractor; and 3) how to go about taxes (e.g. can the law firm withhold only US taxes, must it withhold German taxes, etc.). My goal seems simple: I want to stay in Germany where I already have an apartment and everything I need to work remotely. I want to make the US income but pay into the German social security, pay German taxes, contribute to my German pension scheme and settle in Germany. Any ideas on what I should do, or who can help me?
Hey Jason. So many specific questions that i’d advise you to talk to a Steuerberater or an Immigration specialist instead. In my humble opinion, i don’t think you could apply for a freelance visa with this setup because you need to have German clients, and that’s nothing to say about the Scheinselbstandigkeit situation you would put yourself into.
Hi, Incredible information,thanks for puting this together.
I am an expat on a job search visa which i got after completing my masters here. I ham planning with a friend to open a business here basically planning to open a small grocery store in which I will work and most probably I would hire a maximum of 2 people. We will be renting a place and the only investment will be the day to day operational expenses along with the capital to fill the store with the products.
Which company would be best in my scenario an einzelunternehmen or UG, is einzelunternehmen even allows to open up a grocery store at all or not ? Also, I will be using this to get a business visa of course so this need to be kept in mind as well>
Thank you and hoping to have a response from you.
Hey Zi. Since this is related to a visa application, you’d probably need to get this checked by a specialist. Personal opinion on the matter: you want to separate yourself financially from your business since there are risks attached to it. If things go wrong, you don’t want anybody coming after your personal assets. I’d go for UG, if i were you. But again, you need to ask an expert.
Hi there, thank you so much for all the effort and explaining everything in details. I want to register my business in Germany and this post helped me understand a lot, however I have 2 questions:
1. I make Jewellery (handmade) and sell them on my website, is it considered freelance?
2. At the moment I am using TK insurance under my wife’s (she is a full-time employee), can I still use that or I need to apply for insurance separately?
Thank you so much.
Hey Arash. 1. The answer is complicated and depends on your qualifications. See for yourself here, most likely you need to register a Gewerbe. 2. As soon as you register, you need to pay for your own insurance.
Hi there!
I came across this page whilst trying to find out about becoming a freelance English Teacher in Berlin. I wonder if you know anything about online teaching while working in Berlin?
I currently teach online and was wondering if this could be counted as freelance work in Berlin? Perhaps I could continue with my online lessons, as well as doing freelance work for language schools in Berlin?
Hey Megan. Not sure i understand the context. What difference does it make if it’s online or offline in your case? Is it to secure a freelance visa?
Hello Bastien,
I really want to thank you for all this incredible information! Thank you so much!
I’m planning to become a freelancer because there is a Praktikum that lasts 1 month (shooting a series)… But because of Corona, they do not know if the shooting will be canceled or remains the same.
As for the health insurance, once I become a freelancer I have to pay it by myself (actually I’m in the family plan that my wife owns due to her full-time work)… I have a big dilemma of changing my status and become a freelancer or not…
My question is: Do you know how long does it take to change the status in the system? For example if my shooting is in October and everything remains the same, can I start all this process (health, documentation to the Finanz) the last week of September? Once I give all the documents, can I start working immediately as a freelancer?
Thank you! I hope I could explain myself 🙂
Because I don’t want to become a Freelancer just for this Shooting and then if it’s canceled I just did everything for nothing and get out of the health family plan.
Hey Nicolas. I don’t think that would work as it usually takes 2-3 weeks for the Finanzamt to process your documents. And then you’d need to switch with the health insurance and so on.
Hi Bastien,
Thank you so so much for the information! I wish you a very nice week!
Hi there!
Your information was really helpful. Maybe someone can give an advice on this: I will make an internship for only 6 months, but since that I am NOT student, the company offered me a Frelance contract. I tried to figured out how much of taxes, social security and insurance should I pay.
The salary will be 1000 eur per month.
I am currently insuranced for my husband with TK.
I have a residence permit
How do you see this scenario?
Hey Fabiola. As mentioned here, this is would be a pretty good case for Scheinselbständigkeit. They want to employ you but don’t want to bear the costs of employment, so instead ask you to go freelance and work for them. In my opinion, this is morally dubious at best. Unless you really need this job right here, right now., i’d try to look for opportunities elsewhere.
Hi,
I want to start an independent film company but I will be the only person in the company, will i be a freelancer or what would it make me?
Hey John. If you are starting a production company, then you can do it in different ways. Most likely Gewerbe would be the way to go.
Hi there,
Thanks for the very helpful article! I have just submitted to be a freelancer with the Finanzamt and waiting for documents. I know about the contributions for just health insurance but are there other mandatory/recommended contributions I will need to make for sozialversicherung? I can’t find any information on this.
Thanks a lot!
Hey Amina. I’m not sure what you mean by Sozialverischerung here?
Hi ! Thank you so much for this helpful article. If I work as a freelance event manager for a company, do you think it would be considered as Freiberuflich or Gewerbetreibende ? I’m also confused on a certain point: It is a non-German company but it does have a branch located in Germany for which I will be working. Would I then charge VAT for the services ? Any source to find the answer to this question would also be appreciated.
Hey Alice. I don’t think it would qualify for Freiberuflich in my opinion. If you are billing the German branch, then you can bill VAT. Aren’t they properly registered with VAT number and all?
Thanks a lot for the answer. Turns out even though I will be working in Germany there isn’t a German branch after all. So if I understood well, that would mean I would not be billing this (foreign) company VAT.
Hello!
Amazing, amazing website! I am using it to educate myself since I moved to berline two years ago, and still find valuable information.
Very helpful post, thank you for this. In comments, I saw that you are also a full-time employee as well as me. Maybe you will be able to answer some of my questions here. I want to register as a freelancer for one small side hustle.
1. How long after registration as a freelancer is it take to receive your tax number? Because I will need to sent the client an invoice.
2. If in the next year I will not earn any money as a freelancer, what happened? Do I need to pay some additional taxes or fees?
3. Can I take in my main company unpaid leave, and work on this side mini job during the normal workday? It will not be more than 18h a week, bet it is in a middle of the day and usually I am working the 9 to 5 desk job. Furthermore, I will not be able to do both of the jobs at the same time.
Thank you very much for your help. You are doing an amazing job!
Hey Olga. 1. Can’t remember precisely. 3 to 6 weeks in general. 2. can’t really answer this for fees, as it depends on a few things. in general for taxes, you won’t pay income tax, or trade tax if you haven’t earned anything. 3. This needs to be agreed upon with your employer.
Thank you for your answer! Sorry for replying to this so late.
All best, Olga
Hello! I really like your blog! Thank you very much for the great help to all non-german speakers 😀
I have a question, I already have a Steuernummer for Freelance activity but now I want to sell physical items (I’m already registered at the Gewerbeamt).
Do I have to apply to the Finzanzamt for another Steuernummer for that activity?
Thank you!
Hey Natalia. If you are a Freiberufler already and opening a Gewerbe for this other thing, it’s quite likely you are going to get another Steuernummer for that part yes. If you are already a Gewerbe, probably not.
Hi. Thanks very much for this work.
small point: in English “I” is always capitalised.
Hi Bastien,
Your article is amazing, thank you so much for your effort. I am totally new in this world and I am sorry in advance if some of the questions are repeated. I got a new job as a customer service in a company but they want me to work from home and get the Gewerbeschein.
-Which is better to be in my situation: a “Gewerbetreibende” or a “Freiberuflich”? I am just gonna work on this and I am not planing to build up a company or anything big.
I also have another job but as a normal commercial (not selbständig), so they are paying my health insurance. ( I read that there’s no problem to combine two different jobs).
-Even if I become Gewerbetreibende or a Freiberuflich I don’t have to worry about this health insurance right? But do I really need their approval to become a Gewerbetreibende or a Freiberuflich?
You explained that the VAT is paid monthly or quarterly to the Finanzamt.
-Could you explain exactly HOW to pay it to them? And WHICH amount?
-And when you make a bill which % of VAT do I need to charge them?
-In case I can do the “Kleinunternehmerregelung” then the company I am working for will not pay me any VAT? So I will have to charge them 0% VAT right?
Thank you so much in advance.
No problem to be employed and to be a freelancer on the side yes. Most likely in your situation, you will need to open a Gewerbe. Your employer needs to be aware of your side gig, yes. They will pay for your Krankenkasse.
VAT: You transfer to the bank account of the Finanzamt. You dont bill vat as a Kleinunternehmer yes.
Hi Bastien
Great info, thank you for doing this article!….. I apologise in advance if this is repetitive though I didn’t find the answers in the other comments so far;
I have a job, (though furloughed at home currently). I’m also a jewellery designer, and want to start selling my pieces online. I’ve set up a Shopify store (was about to go live until I got confused with the legality side of it all).
I need some clarification please, since it can vary for online store businesses somewhat. Plus I don’t want to create unnecessary paperwork and costs, when I don’t even know whether I’ll sell anything or not yet;
-Do I still need to register as a “Freelancer”?
-Do I need a Tax No to operate a Shopify store?
-I have a tax accountant that does my tax return for my normal job already. Should I get her to do it all for me, or can I do it myself following the links in yr article?
Lastly, do you have any knowledge about Terms of Service, Privacy/Data Protection, Cancellation/Withdrawal agreement documents for online shops specially, and where I might be able to access them to have them on my shop? I don’t want to get fined by lawyers trawling small businesses to find a tiny oversight.
Thank you so much….. such a minefield, once you get started!
–
Hey Tina. You’d need to open a Gewerbe for your online shop, with tax number. Regarding terms & conditions, i believe Shopify provides ample guidance on that topic, so you may look there in their resources. Do you need an accountant for that? Up to you really, if you feel like you can’t manage on your own.
Hi Bastian
Thx! Unfortunately, Shopify doesn’t provide T&C, Privacy, etc templates for Germany, everything is US specific. They only tell you general points that German sites may need to include (Shipping, T&C, Privacy, etc) which I know. What I need is the actual legal text for these policies, which besides using costly lawyers, or paying monthly subscriptions, I’m struggling to find.
Re: Gewerbe, what is that?, can I do that myself online? Where do I take care of that please?
Sorry, thx a million!
Update: Sorry, ignore the Gewerbe ?’s…. re read yr article! 😛
You also have such generators for policies in German too, if you search for 2AGB Generator” or “Datenschutz generator online shop”.
Hi – great blog article, thanks so much for posting!
I recently applied for a Steuernummer, and received a letter from the Finanzamt with the number. However, I’m still unclear if I’m classified by them as a Freiberufler or Gewerbetreibende? The letter is not clear (to me), and defines the type of activity as:
Bezeichnung des Betriebes bzw. Art der Tätigkeit:
Erbrg.v.Beratldg.f.Info.tech.
Any insight would be greatly appreciated
Natalie
Hey Natalie. You are a Freiberufler. Extra source.
Hi
Thanks for the information that you provide on this site I think a learn a some new thinks today. That’s great!!! I’m currently employed on a logistic company and I want to get a van and do some extra work(self employed) ďo I need to apply for specials permits to do that? What do I have to do to start a small business?i will love to get a small delivery company! Thanks a lot
Hey Dan. You’d need to open a Gewerbe yes. More details on the rest this way.
Hi,
Thanks for all the great information on this website! I’ve been working in Germany for just over a year and i lost my job so I am on Arbeitslosengeld. I’ve been offered a job in Luxembourg but I would like to try and do this work remotely while living in Germany. I understand this means giving up my arbeitslosengeld.
However, I’ve read on many forms that if I am ’employed’ by a company outside of Germany then I am considered as a freelancer by the German government – that is, i am responsible to pay my taxes, health insurance etc.
I’ve also read that it is illegal to freelance for one company (Scheinselbstständigkeit or so-called “bogus employment” -> https://www.projektwerk.com/magazin/allgemein/scheinselbststaendigkeit/aktuelle-rechtslage-zur-scheinselbststaendigkeit#definition)
This appears to make it impossible for me to do any work for *one* company abroad while living in Germany? Is this correct? Is there any way around this that you know of?
Any help is greatly appreciated.
Thanks
Calum
Hey Calum. Yes, i talked about that in the post too. In my opinion, it would arguably be harder to detect by the Finanzamt, since the company is based abroad. But since it’s a proper job, why not being employed there instead of freelancing?
Hi,
I also have similar situation. Working in Germany for other EU company. I can’t move, and they don’t have any entity in Germany. So, what are the other options for this?
Hey Nicol. I couldn#t find other answers on this. Sorry.
Thanks for the site!
I’ve received my freelance Steuernummer, and shortly afterwords another letter saying it also now applies to Umsatzsteuer? I’ll be earning a low amount annually (under £10,000) and thought I had indicated this in my application. Do I need to apply for “Kleinunternehmerregelung” separately now? Thanks
Hey Jussi. If you said you applied for Kleinunternehmerregelung, then you don’t need to worry about this. It may simply be a simple “Bescheid”. In doubt, you can always give the Finanzamt a call.
Hi Bastien,
Thanks for the article and information!
I am still struggling to understand what steps I should take if I am already a full-time employee in Berlin and would like to have a part-time side freelance job at the same time. I am not sure whether a VAT application should be done in these case or there are other options based on the foreseen income threshold.
Would you be able to recommend any resources for this?
Thanks in advance,
Marte
Hey Marte. The steps are the same, whether or not you have employment somewhere else. The two are not connected, as far as registration and bookkeeping is concerned.
Hi Bastien, A company in Switzerland wants to hire me as soon as possible, but I live in Germany. They do not have a business address in Germany as of yet, but they want to open a branch in Germany in a few months. How can I go about working with them in the meantime? What are my options?
Hey Mo. If you landed on this post, then it means you already know it should probably be through some freelancing. What’s holding you back?
Hey Bastien,
Thank you sooooo much for this post and the entire platform! I am reading it right now and informing myself.
But I have a question which I would appreciate your input on. Of course, I understand you are only sharing from your experience.
A little background: I (non-EU citizen) graduated from a German uni in Oct 2019 but couldn’t apply for job search visa because I didn’t have all the academic documents. So my student visa/residence permit was extended till March 2020. I had my appointment in March to apply for job search visa but it was cancelled due to Coronavirus lockdown and I was issued a Fiktionbecheinigung (sent via post) with the same student status which expires in Sept 2020.
Now, I have a ‘job’ offer with six months contract from a company based outside EU. This is a remote job, irrespective of corona lockdown. I can be paid monthly, twice in six-month time or once at the end of six-month contract (payment is flexible).
My question is: can I start working for this company before I register with the Finanzamt?
Hey Khan. If you current visa allows a sidegig, you can become a freelancer. In theory, you need to be registered before of course. But if it’s a matter of days, you can start to work for this company, and bill them first after you are registered. Up to you to decide.
Hey Bastien,
thank you very much for your article. I have a question and if you have answered it before I apologize. I am a student in Germany and I am a freelancer in Germany. I work mainly for the company from Germany. Could I also work for clients from abroad from time to time? Are there some rules?
Thank you.
Veronika
Hey Veronika. Nothing prevents you from working with clients based abroad. You won’t be billing VAT to those clients and make sure to do a “Zusammenfassende Meldung” via Elster for the relevant time frame. This is basically you declaring how much you billed that client abroad.
Thank you for great information, so I have a question; how can I have a health insurance without being employed? I have a travel insurance for my period of stay in Germany as a job seeker, but now that I only have invitations from companies to work on micro-projects as freelancer, how can I have health insurance to register myself as a freelancer and be able to work as a freelancer on thses small projects?
Hey Hosna. You’d need to have a freelancer visa then before you can even start this whole process. See this post with info about health insurance too.
Hi Bastien,
Firstly, thanks a lot for this information and compilation of resources on how to register a company in Germany – it is for sure a complicated process…
Context: my wife will start a new business as a seller on amazon she will register for Gewerbetreibende ( einzelunternehmen) but she wants to do it as kleinunternehmer nebenberuflich to avoid pay the health insurance and remain with me in family health insurance till she starts to earn money from amazon because the first 3 months she should finish amazon`s paper, so to register for this is it the same process and same application to register for normal kleinunternehmer ? can she later change it from nebenberuflich to normal kleinunternehmer?…..many thanks Bastien for your effort really. <3
Hey Mahmoud. As soon as your wife starts her business, she will have to start to pay her own health insurance as well. Registration process is the same yes. The concept of “nebenberuflich” only points out situation where somebody is a freelancer and an employee at the same time, where the freelancing remains small in terms of hours and revenue. It’s not a status that grants particular rights. If your wife were to be employed somewhere as well (and be covered by a Krankenkasse there), then she would probably not need to pay health inusnrace out of her own pocket. Hope this helps.
Hey Mahmood,
My situation is similar to your wife’s, and I also want to start working on Amazon. Can you share your experiences with me?
If it’s possible for you, it could be amazing…
here is my email address
hanieh.esmaeili1992@gmail.com
THANX
Hi Bastien,
I am an international student and want to start freelancing. My first question is can I do freelancing as a part-time job while being a student? Secondly, as a student do I have to pay the taxes as well?
Hey Nazmus. If your residence permit allows it, then yes, you can also be freelancing as a student, and you will need to pay taxes too.
Hi Bastien, great article. I am planning to quit my full time job and become a freelancer working for a same company. Now I am wondering is it possible to outsource part of my work to other company to another country in EU?
Thanks for your help!
Hey Zoran. Yes, you can use any service provider you like but watch out: make sure your former employer is not your only client. That would be illegal.
Hi… short question… can i have family health insurance through my wife if i am kleinunternehmen… or it is mandatory to pay it? cuse 350€ seems a lot in start….
Hey Tomi. No, that would not be possible, you need to pay your own insurance unfortunately.
Thank you for the article. I have some questions:
1. Can I, as a non EU citizen with a permanent resident visa (Niederlassungserlaubnis) become a freelancer?
2. Can it be as Freiberuflich?
3. What if I work for a non German company? What does this mean for taxes?
Hey. 1. yes. 2.yes 3. This means that you would not bill this company VAT, but all the rest stays the same.
Hi Bastien, I recently moved to Germany on a family reunion visa, I worked for 5 months full time as this was a short contract, I have been out of employment for 3 months now, last week an American company interviewed me for a job here in Germany to oversee some of their clients work, in EMEA and ASIA, However while I knew the job was homebased, I only got the information that it was more of a contract-and I have to pay for the insurances by myself, in this case where does this fall as freelancer or self-employed? do you have to apply for a different steuer number?
Hey Kairetu. Not sure about the question here. If this is not a employment offer, then you’d need to register as a freelancer. I cant tell you if you would fall under Gewerbe or Freiberuflich on so little infos. Depends on the job you will do.
It sounded like employment but they want me to register as a freelancer, there is an annual salary, benefits, but they mentioned that I have to do the taxes myself, so I was confused, whether this would fall under falseselfemployment. I am also curious how I should go about it so that i dont have problems with the tax office.
Yup. Definitely looks like that, i’d stay away or renegotiate if i were you.
Dear Bastien,
Thank you so much for sharing all this valuable information on your page. You’ve saved many lives. 🙂
I have a question about starting to be a freelancer when doing art jobs.
I need to make a freelance tax number for receiving money for:
1) Doing small gigs for film projects, social media services, art direction, art services for parties, and so on.
But also
2) sell my art prints online through my website and probably webshops.
Until now I have asked all bills to be sent to my friend who has a proper tax number for this…
Which freelance form should I go for? Is it even possible to register as a freelancer atm in the corona time?
Thank you very much, A
Hey Anna. The way i see it you could either 1- be Freiberuflich for some of the stuff, and then open a Gewerbe for the rest that doesn’t qualify, or 2- simply be Gewerbe for everything. The Finanzamt should be open for registration, check your local Finanzamt’s website for more info.
Hi Bastien,
Thanks for this amazing website and making us tackle the language barrier.
I’ve read many documents and I have one question left: I have a full time employment and I’m doing teach programming on the side, for this I’ll register as Freiberufler no problem. I’ll be also planning to sell apps (software/digital products) on App Store and Play Store.
Do I need to register a Gewerbe for that? As a Gewerbetreibende ?
Thanks a lot for all answers you gave to comments here.
Hey Jordan. I’m glad you could find some answers here. Yes, you’d need to have a Gewerbe as well to be able to sell digital products.
Hey Bastien,
Thank you for the nice article, very informative.
I am currently working as Full-time employee and receiving a salary in my only bank account.
I want to move to freelancing and my question is : Can I open a second business bank account, apply for freelancing tax number and VAT number while I am employed as a full-time employee and receiving a salary in my first Bank account ?
I want to quit my current work in three months, so will it be possible legally to start the procedure from now, having two bank accounts and two tax numbers ?
Thank you 🙂
Hey Jacob. In short, yes. As a freelancer, you don’t need to own a business/corporate bank account to operate. You can use any bank account you wish and you don’t even need to have separate ones. You can still do that if you want to of course, it’s just not a requirement. Also, you can be registered as a freelancer and still work as an employee (Like i do). And lastly, your Steuernummer may not change at all after becoming a freelancer.
I just want to share that I managed to fill my “Fragebogen zur steuerliche Erfassung” online using the website Elster.de, you will also need an account on this website if you want to do the monthly VAT reporting with the Finanzamt
Hi Bastien
I am a non-EU citizen but spouse of a Bluecard holder and also holds the dependent BlueCard.
Currently I am waiting for my work contract to start and in the meantime I am planning to take up some project in the field of Online Marketing with a German client. This freelancing work wont be a long term thing(2-3 months) and I will be earning way lesser than 17.5K/year.
Do I still need to register myself as a freelancer? What will happen if I dont register as a freelancer as this is a temporary thing?
Hey Shree. Yes, you need register yourself as a freelancer to make it legit, even if total income is low.
Hello!
Thanks for this article. I would like to register a room in my home as my studio and claim it in my tax. Do you know if i need to register it officially somehow? Or do i just claim that part of my rent in my tax return?
Thanks!
Hey Nirmala. No, you don’t need to register it as such but if you get audited, you still need to show/prove that this room is used for work, and work only, clearly separated from the rest of the flat.
Hi Batien,
I’m living in China and I want to hold a online-shop on Shopify and sell products in German. Should I apply for the VAT No.? Or what should I regist?
I’ve no company and I deliver the products to my friend’s warehause and he will help me to deliver them to the clients in German.
Thanks in advance for your reply.
Hu
Hey Hu. May i suggest this post about incorporating a company?. Most likely, you won’t need a German VAT number unless you reach a certain threshold in sales.
Hi Bastien,
I’ve been freelancing in Berlin since November 2018 but didn’t register as a freelancer. I’m completing my Fragebogen zur steuerlichen Erfassung now before I complete my tax declaration. It asks when I started freelancing. What should I say?
Love your site btw.
Cheers,
Shane
Hey Shane. That’s for you to answer. In my opinion, you don’t exist in the eyes of the Finanzamt as a freelancer unless you have registered as such. So in theory, you havent started yet.
Hi Bastien, do you know how the situation works with public HI for freelancers who also have a mini job on the side? I make most of my earnings freelancing but I also have a mini job on the side. WiIl I have to pay the same insurance on my mini job (ie 14.6% HI and 3.3% care insurance)? These percentages are taken from my total earnings, right? The mini job isn’t exempt?
Hey Joe. That is a great question, i think that would not be the case, if i understood this post correctly.
Thanks for getting back to me My German’s not great but the translation seemed to say that the minijob income would be exempt from HI etc: “The mini job is also insurance-free with regard to health, nursing and unemployment insurance”. This is at odds with what TK told me over the phone, however.
Hey Bastien,
Thanks for all the amazing content.
I am EU citizen registered in Berlin and want to rent a space and teach yoga.
Would I just need to become a freelancer, or do you think it’s more complicated given my activity?
Couldn’t really figure this out online until now.
Thanks in advance!
Hey Alex. There aren’t any safety or hygiene certifications required to be able to rent a room as a yoga teacher. Probably make sure you have the right kind of insurance in case you or one of your pupils damage something in the said space.
Thanks for getting back to me 🙂 My German’s not great but the translation seemed to say that the minijob income would be exempt from HI etc: “The mini job is also insurance-free with regard to health, nursing and unemployment insurance”. This is at odds with what TK told me over the phone, however.
Whoops, commented on the wrong post
Wondering if I could use a few of your references on my personal blog https://two50plusmovingtogermany.com as I have found the information immensely helpful in my freelance endevours. All references will be specified to your site.
Thanks,
Tam
Hey Tammy. Sure. Please use the full URL and name of the post when referencing it.
If I work full time for a company in the US can I apply for the freelance visa in Berlin to work remotely? Then one in Berlin try to also find freelance work?
Hey Aiden. Applying for a freelance visa in Germany usually requires to work for local clients, with letters of intent to prove it. Full guide this way.
Hi Aiden, I’m in a similar situation, working full time for a company in the US, but from Germany since my husband has a German contract. I want to set it up so I’m paying taxes in Germany. How did you go about doing this? Any insight?
Thanks so much!
Claire
Hi Bastien,
Firstly thank you very much for this helpful and very complete post!
I have two questions:
1. If I understand correctly, as a Graphic Designer selling services (logos, website design etc), I would register as Freiberuflich (or freelancer) not Gewerbetreibende?
2. I am currently receiving Arbeitslosengeld 1, and while I want, and am looking for, a permanent position, I have the opportunity of doing a bit of freelance work here and there in the meantime (quite irregular, small sums, but I don’t want to go freelance full-time).
Is registering as a freelancer compatible with receiving the Arbeitslosengeld? Arbeitslosengeld is obviously not for ‘setting-up your business’ so I don’t want to give the impression that I am launching my freelancing business, when in fact I am just taking advantage of the opportunity of making a bit of money with freelancing once in a while.
Thanks for your help!
Hey Claire. If i understand this page correctly, it seems that it can be considered freiberuflich, provided you can prove you made an education that field. Concerning ALG1 and sidegigs, see the FAQ on this page.
Bastien,
Thanks for this article it was very thorough. My question is I applied for my freelance visa as artist mgmt, event coordinator and social media but my freelance contract with my past employee ended in January. I am currently looking for a new job but I am curious if I need to look in the Freelance field or I can apply for anything? Also, can I work at places like a bar or cafe? just to make some side money?
Hey Ike, i can’t really help on visa related matters because it’s almost on a case by case basis. You have to look at what your visa permits or not.
Hi Bastien, great article. I already own a small business (single-proprietor LLC) in the US. Do I need to register a new business in Germany or can I just claim foreign income? Right now I don’t have any EU clients, just US clients. Or would it make more sense to register as a freelancer and claim my US business income as freelance income?
Hey Corey. I can’t really tell because this touches many other aspects like income tax or corporation tax, and it’s always extra complicated with the US. You have to investigate what makes most sense from that perspective. My humble opinion is that if you are going to be a German resident indefinitely, probably best open a company here.
Hi,
Your website has saved my life many times. Thank you so much for helping us.
I would like to ask you about the EU VAT-ID. I would need one, but I don’t know this part of your article is about to obtain online a EU VAT-ID or the German VAT-ID.
“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 …”
Many thanks!
Hey Borbala. Glad i can be of help. Yes, you will get an EU one via this form.
Hi Bastien,
Firstly, thanks a lot for this compilation of resources on how to get started as a freelancer in Germany – it is for sure a complicated process… I’ve been using it as a guide & support for the past 4 months as I’ve gone through the process myself.
Context: I’ve registered as a freelancer (kleine unternehmen) beginning of 2020 to be able to invoice project work I do sporadically/side-business. I don’t plan to earn more than 17.5k/year hence (most probably less than 8k as well) so I’m applying the VAT exemption rule on my services (Kleinunternehmer rule § 19 UStG Paragraph 1). My clients are located in Germany and other EU countries.
Question: do I need to acquire an EU VAT to invoice the clients outside of Germany?
Thank you so so much for putting all this content up!
All good vibes,
Viktoria
Hey Viktoria. Glad it could be helpful. The sad answer is: it depends. Check this article out for more info, and use Gtranslate if needed.
Hi
I registered as a freelancer and got a tax Id but I did not have a single client and did not make any money. Would I still need to pay a tax based on the estimate I submitted when I filled out the form to get a new ID? Now I actually got a new job and will go back to working for an employer.
Hey Alekhya. You still need to submit a tax declaration at the end of the year but you probably won’t need to pay anything no.