Financial specifics for freelancers and entrepreneurs in Germany.
Types of Self-Employment
| Type | German | Description |
|---|
| Freelancer | Freiberufler | Liberal professions (IT, design, consulting, doctors, lawyers) |
| Sole proprietor | Gewerbetreibender | Trade, services, production |
Key Differences from Employees
| Aspect | Employee | Self-Employed |
|---|
| Taxes | Employer withholds | Pay yourself |
| Insurance | Split with employer | Pay fully yourself |
| Pension | Mandatory contributions | Usually voluntary |
| Accounting | Not needed | Needed |
Section Topics
Common Mistakes
| ❌ What people do | ✅ Best practice |
|---|
| Don't save for taxes | Set aside 30–40% of every payment |
| Forget about insurance | Get covered from day one |
| Ignore pension | Invest at least 10–15% |
| Single client | Multiple clients to avoid Scheinselbstständigkeit |
- €25,000 — Kleinunternehmerregelung threshold (previous year)
- €100,000 — Forecast threshold (current year)
- €12,096 — Grundfreibetrag (tax-free)
- €24,500 — Gewerbesteuer Freibetrag
- 30–40% — set aside for taxes
First Steps
- Determine activity type (Freiberuf or Gewerbe)
- Register
- Open business account
- Set up accounting
- Get insurance