Self-employed in Germany: freelancer or trade, and how to register

3 min read · 7 steps · Updated 2 October 2026

German law knows two kinds of self-employment, and the difference decides where you register, whether you pay trade tax and which chamber you belong to. The tax office has the last word on which kind you are.

Rules, amounts and deadlines change. Check the official source named at the end before you act, and ask the office in your city, because procedures differ from town to town.

This is general information, not tax or legal advice. For your own case, ask a tax adviser or a start-up advice centre.

Step by step

1. Check your residence permit

   EU citizens may start at once. People from other countries need a permit that allows self-employment: section 21 (5) of the Residence Act for freelancers, section 21 (1) for a trade. Many other permits allow it too or can be extended to it. Look at the additional sheet of your permit and ask the immigration office before you start.

   Done

2. Find out which kind you are

   Liberal professions are scientific, artistic, teaching and writing work and similar services: for example doctors, lawyers, engineers, architects, interpreters, journalists, teachers, designers and musicians. A trade is selling goods, manufacturing, crafts, catering and most other commercial services.

   Done

3. Freelancers: register with the tax office

   Within four weeks of starting, fill in the questionnaire for tax registration (Fragebogen zur steuerlichen Erfassung) in the ELSTER portal at elster.de. The tax office then sends your tax number, which must be on every invoice.

   Done

4. Trade: register at the trade office

   Go to the Gewerbeamt of your town or use its online service. Bring your passport and residence permit, and any permit or qualification your trade needs. Crafts usually need a master craftsman's certificate. The fee is usually about 50 euros. The trade office informs the tax office, which sends you the same questionnaire, and you become a member of the Chamber of Industry and Commerce (IHK) or of Skilled Crafts (HWK).

   Done

5. Decide on the small business rule

   If your turnover was not above 25,000 euros in the previous year and does not go above 100,000 euros in the current year, you can use the small business rule (Kleinunternehmerregelung): you charge no VAT and file no VAT returns, and you cannot reclaim VAT on purchases. Otherwise you add 19 or 7 percent VAT to your invoices and pass it on to the tax office.

   Done

6. Sort out health insurance and pension

   Health insurance is compulsory. You choose between voluntary membership of a statutory insurer and private insurance. Pension insurance is compulsory only for some groups, such as self-employed teachers, midwives and carers. Artists and writers can apply to the Artists' Social Security Fund (Künstlersozialkasse), which pays half of their contributions.

   Done

7. Write proper invoices and keep records

   An invoice needs your name and address, the customer's, the date, a consecutive invoice number, your tax number, what was delivered and when, the net amount, the VAT rate and amount, and the total. Keep invoices and receipts for ten years. Most freelancers and small traders may use simple income and expense accounting.

   Done

Good to know

Working for only one client, at their premises, following their instructions, can count as bogus self-employment (Scheinselbständigkeit). It leads to back payments of social contributions and can be punished.

Tradespeople pay trade tax on profits above an allowance of 24,500 euros. Freelancers pay none.

There is no employer to deduct income tax. The tax office sets advance payments every quarter, and you file a tax return every year: tax return in Germany: who has to file and how to do it.

Without an employer's contribution, insurance costs more: health insurance in Germany: how it works for newcomers.

In short: Permit that allows it, freelancer or trade, tax office questionnaire in ELSTER within four weeks or trade office first, small business rule up to 25,000 euros, health insurance, proper invoices.