Self-employment in Germany (German: Selbstständigkeit) includes commercial activity (Gewerbe) and work in the liberal professions (freie Berufe). Self-employed in the latter group are known as Freiberufler. While commercial businesses register with the trade office and are liable for trade tax, Freiberufler register with the tax office and are exempt from trade tax.
Germany had about 3.67 million self-employed people in 2025, representing around eight per cent of total employment.
Types of self-employment
Freiberufler The German term Freiberufler is narrower than the general English-language term freelancer. Whether an activity qualifies as a liberal profession depends on the nature of the work.
The liberal professions listed in Income Tax Act include:
Health professions: physicians, dentists, veterinarians, alternative practitioners and physiotherapists. Legal, tax and business advisory professions: lawyers, patent attorneys, notaries, auditors, tax advisers, authorised tax agents, consulting economists and business economists, and sworn auditors. Scientific and technical professions: surveyors, engineers, architects, commercial chemists and maritime pilots. Language and information professions: journalists, photojournalists, interpreters and translators.
The law also covers independent scientific, artistic, literary, teaching and educational activities, as well as professions sufficiently similar to those listed above.
Commercial self-employment Self-employed activities that are not classified as liberal professions may constitute a commercial business (Gewerbe). These include retail, skilled trades and other commercial activities. Unlike members of the liberal professions, commercial operators normally have to register their activity with the local trade office (Gewerbeamt).
Solo self-employment People who are self-employed without employees are commonly described as Solo-Selbstständige ("solo self-employed"). Germany had about 1.75 million solo self-employed people in 2025.
Registration Freiberufler register directly with the tax office. Registration is usually completed electronically through ELSTER using the questionnaire for tax registration (Fragebogen zur steuerlichen Erfassung).
Commercial businesses are registered with the municipality's trade office. Some activities also require licences, professional qualifications or membership of a professional chamber.
Taxation Self-employed people pay income tax on their profits. One of the main differences between freelance and commercial self-employment concerns trade tax (Gewerbesteuer). Freiberufler are exempt from trade tax. Commercial businesses are be liable for it, although individuals and partnerships benefit from a €24,500 allowance.
Most self-employed activities are also subject to value-added tax (VAT). Since 2025, this does not apply if turnover did not exceed €25,000 in the previous calendar year and does not exceed €100,000 in the current year.
Many self-employed people determine their taxable profit using an income-surplus statement (Einnahmenüberschussrechnung, EÜR), which records the difference between business income and expenses.
Electronic invoicing Germany introduced new electronic invoicing requirements (E-Rechnung) since January 2025. An E-Rechnung must use a structured electronic format and a standard PDF invoice alone does not meet this requirement.
Since 2025, domestic businesses, including self-employed people, have had to be able to receive E-Rechnungen. Other invoice formats may still be issued during a transitional period.
They remain permitted through 2026, and through 2027 for businesses whose turnover in the previous year did not exceed €800,000. Businesses using the Kleinunternehmerregelung are exempt from the requirement to issue E-Rechnungen, but must still be able to receive them.
Common formats include XRechnung and qualifying versions of ZUGFeRD, which use structured invoice data based on the European standard.
Accounting software The tax authorities check electronic business records against the . These are rules from the Federal Ministry of Finance on how records and documents should be kept and stored in electronic form. The GoBD also apply to self-employed people who do not have to keep full books and instead calculate their profit with an income-surplus statement (Einnahmenüberschussrechnung, EÜR). Advance VAT returns (Umsatzsteuer-Voranmeldung) and the EÜR must be filed online.
Bookkeeping services used by self-employed people in Germany include Lexware Office, sevDesk and Accountable. Depending on the service, they provide functions such as invoicing, expense recording, EÜR preparation and VAT filing.
Social insurance Social insurance for self-employed people differs from that for employees. Self-employed people who are not compulsorily insured through the statutory health-insurance system can generally choose between voluntary membership of a statutory health insurer and private health insurance.
Most self-employed people are not automatically covered by compulsory statutory pension insurance.
Self-employed artists and publicists may qualify for insurance through the Künstlersozialkasse, under which they pay roughly half of the contributions for statutory pension, health and long-term care insurance.
See also
Taxation in Germany Tax return in Germany Municipal trade tax in Germany Social security in Germany
References