Freelancing in Germany

Going self-employed in Germany starts with one question that decides almost everything else: are you a Freiberufler or do you run a Gewerbe? The answer sets which office you register with, whether you pay trade tax, and whether you join the chamber of commerce. Here is how the two paths work and the paperwork each one needs.

Freiberufler vs Gewerbe: the key split

A Freiberufler practises a "liberal profession" — the catalogue in § 18 EStG covers writers, journalists, translators, teachers, doctors, lawyers, engineers and similar independent, knowledge-based work. Software developers and designers often qualify too, but it is the Finanzamt (tax office) that ultimately decides. As a Freiberufler you do not register a trade, you pay no trade tax (Gewerbesteuer), and you do not join the chamber of commerce.

Everything else is a Gewerbe — a commercial trade. If you sell products, run a shop, resell goods, or provide services that are not a liberal profession, you are running a Gewerbe. That means a Gewerbeanmeldung (§ 14 GewO) at your local trade office (Gewerbeamt or Ordnungsamt), and mandatory membership of the local IHK (chamber of industry and commerce). Small traders pay little or no IHK fee below certain profit thresholds, but membership itself is not optional.

Step 1 — Register (only if you run a Gewerbe)

If your work is a trade, file the Gewerbeanmeldung first. It is a short form, costs roughly €20–€60 depending on the municipality, and can often be done online. The trade office automatically informs the Finanzamt, the IHK and — where relevant — other bodies. Freiberufler skip this step entirely and go straight to the tax office. Our German explainer walks through the form: Gewerbeanmeldung.

Step 2 — The tax questionnaire (Fragebogen zur steuerlichen Erfassung)

Everyone who goes self-employed — Freiberufler and Gewerbe alike — must complete the Fragebogen zur steuerlichen Erfassung, the "questionnaire for tax registration". You submit it electronically through ELSTER, the tax authority's online portal, within about a month of starting. It asks for your expected turnover and profit, your bank details, and whether you want to use the small-business VAT scheme (Kleinunternehmerregelung). Take the VAT question seriously — see our guide to the Kleinunternehmer-Regelung.

Step 3 — Get your Steuernummer

Once the Finanzamt has processed your questionnaire, it issues your Steuernummer (tax number). You must put this on every invoice, so you cannot really start billing until it arrives — usually a few weeks later. It is separate from the VAT identification number (USt-IdNr.), which you only request if you invoice businesses in other EU countries.

What about health insurance and pensions?

Self-employment does not exempt you from health insurance — it is compulsory in Germany, and you choose between statutory (gesetzlich) and private (privat) cover. Some professions (for example artists and publicists via the KSK, or trades listed in the Handwerksordnung) also face specific pension rules. This is exactly the kind of individual question to put to a Steuerberater (tax adviser) or an insurance adviser before you commit.

Frequently asked