Germany is welcoming to freelancers — provided you set up your business status correctly from day one. The key distinction: Freiberufler (liberal professional) vs. Gewerbetreibender (commercial trader).
Which Category Are You?
Freiberufler status applies to specific professions defined by German tax law: doctors, lawyers, architects, writers, journalists, translators, artists, and — relevant to many expats — software developers and IT consultants. Freiberufler skip trade tax (Gewerbesteuer) and have simpler registration. Everything else is Gewerbetreibender: requires extra Gewerbeamt registration and trade tax. If uncertain, ask your local Finanzamt or a Steuerberater (tax advisor).
Registration
Register with your local Finanzamt by submitting the Fragebogen zur steuerlichen Erfassung (available on ELSTER, the tax portal). You receive a Steuernummer within weeks. Annual revenue above €22,000 triggers mandatory VAT registration; below that you can use Kleinunternehmerregelung (simplified, no VAT).
Invoicing Requirements
Every invoice must include: your name and address, client details, your Steuernummer, invoice date, invoice number, service description, net amount, VAT rate and amount, and gross total. Keep all invoices for 10 years.
Health Insurance as a Freelancer
Join GKV as a voluntarily insured member (income-based, typically 14–16% of net income with a cap), or go private (PKV) — cheaper when young and healthy, but premiums rise with age.
