Starting as a Freelancer in Germany: Tax, VAT, and Insurance

Freelancing in Germany means working as a Freiberufler: a self-employed person in a liberal profession, not running a commercial Gewerbe. You register with the Finanzamt, file your own taxes, and arrange health insurance. There is no employer to withhold tax or split social contributions.

Start with Self-Employment in Germany 101 if you are unsure whether you qualify. This guide does not cover trade registration, IHK fees, or Gewerbesteuer. For those, see Starting a Business in Germany.

Who qualifies as a Freiberufler

Legal basis. Liberal professions are defined in Section 18 EStG and related law (including partnership rules for certain professional firms). The Finanzamt looks at your training, daily work, and invoices, not the English word “freelancer.”

Catalog professions (Katalogberufe). These are listed in law and generally qualify when you actually practice them. They include, among others: physicians, dentists, veterinarians, lawyers, notaries, patent attorneys, engineers, architects, auditors, tax advisors, consulting economists, physiotherapists, alternative practitioners, journalists, photographers, interpreters, translators, maritime pilots (Lotsen), scientists, artists, writers, editors, teachers, and educators. Midwives (Hebammen) are not named in the statutory catalog list but often qualify as a catalog-like profession under case law.

Catalog-like professions (katalogähnliche Berufe). Work that is similar in nature to catalog roles, such as many IT consultants, marketing consultants, ergotherapists, speech therapists, or building experts, needs individual review. Approval depends on qualifications and the exact services you sell.

What you do not register. No Gewerbeamt registration for the freelance activity itself, no Gewerbesteuer, and no mandatory IHK membership for pure Freiberufler status.

Registering with the Finanzamt

Main step. Submit the tax registration questionnaire (Fragebogen zur steuerlichen Erfassung) to your local Finanzamt. You receive a tax number (Steuernummer) and, if needed, a VAT ID (Umsatzsteuer-Identifikationsnummer).

Bring or prepare: ID, proof of address (Anmeldung), diplomas or professional licences, sample contracts, and a short description of services and expected clients. Non-EU citizens usually need a residence permit that allows self-employment.

Bookkeeping from day one. Use EÜR (Einnahmen-Überschuss-Rechnung). Freiberufler may keep EÜR regardless of revenue, unlike many Gewerbe operators who must switch to full accounts at higher thresholds.

If the office says Gewerbe. Stop and follow Starting a Business in Germany. Do not invoice as Freiberufler while running a shop or commercial agency without a clear split.

Taxes and VAT

Income tax (Einkommensteuer). Tax is due on profit (income minus allowable expenses). Expect quarterly prepayments and an annual return via ELSTER. Rates are progressive. Set aside money every month; tax plus insurance often takes a large share of profit.

VAT (Umsatzsteuer). Standard rate 19%; 7% on certain items. Many freelancers use the Kleinunternehmerregelung to skip charging VAT under revenue caps. Full thresholds, trade-offs, and opt-in rules: Self-Employment in Germany 101. General tax context: Taxes in Germany.

No trade tax. Genuine Freiberufler income is not subject to Gewerbesteuer. Mixed commercial work can trigger reclassification and back taxes. See the tainting section in Self-Employment in Germany 101.

A Steuerberater is strongly recommended for prepayment estimates and your first annual filing.

Insurance and retirement

Health insurance. You choose private (PKV) or voluntary public cover and pay the full premium. Private cover is often cheaper when young and healthy but can rise with age. Public insurance costs more upfront but may cover family members without extra premiums. Artists and publicists may use the Künstlersozialkasse (KSK) to pay roughly an employee-like share of public insurance. See Health Insurance in Germany.

Pension. Mandatory for self-employed teachers and educators, midwives, craftspeople in certain trades, and artists/publicists via the KSK. For most other freelancers it is voluntary, but you should still save early. See Preparing for Retirement in Germany for Rürup, ETFs, and cultural context. Late mandatory payments can trigger surcharges.

Professional liability (Berufshaftpflicht). Strongly advised where mistakes could harm clients financially. Other non-health policies are in Insurance in Germany: What You Actually Need.

Visa rules and Scheinselbständigkeit

EU citizens. No special visa. Register with the Finanzamt and meet tax and insurance rules.

Non-EU citizens. You need a permit for self-employment, often Aufenthaltserlaubnis zur selbständigen Tätigkeit. Expect a viable plan, client contracts, funds, health insurance, and field qualifications. Apply at the Ausländerbehörde or a German embassy. Details: Freelance Visa for Germany.

Fake self-employment (Scheinselbständigkeit). You may be treated as an employee if you have one client, fixed hours and location, only the client’s equipment, deep integration into the client’s team, and no business risk. That can mean back taxes, back social contributions, and fines for you and the client. Use several clients, clear contracts, your own tools, and control over how you work.

Useful links

• Make it in Germany: Self-employment
• Wundertax: Find a Finanzamt
• Firma.de: Catalog professions

Related pitfalls

Common mistakes to avoid

Short warnings linked to this guide. Each item highlights a costly or legal slip newcomers often make.

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