The terms “Freiberufler“, “freelancer” and “self-employed” are often confused and used as synonyms. Please note: Self-employed people in Germany are
- either business people [Gewerbetreibende]
- or members of the liberal professions [Freie Berufe].
Different rules apply to these two categories. It is very important that you distinguish between these two types of new businesses and find out which one is right for you.
Info Business or liberal profession
FAQ Freelancing in Munich: Freiberufler or Gewerbe?
Registration with the tax office: online via ELSTER
Register with Tax Office no later than one month after starting your self-employment. The tax office responsible for you is determined by where you generate your income. In Munich turn to the Munich Tax Office (Finanzamt München).
Registering at the tax office is done digitally. All forms relating to tax registration are free or charge and available via ELSTER, the online portal used by the government’s financial administrative authorities. You may also use the forms provided by a commercial accounting software that is able to integrate with ELSTER. Please note, that in any case you are required to register once with ELSTER. The certificate file required for electronic authentication is created free of charge during registration. A domestic classification criterion (tax number) is essential for registration on the ELSTER portal. Learn how to register with the tax office in two steps.
Practical tips
- If you decide to start self-employed work as a member of the liberal professions (Freie Berufe) , the tax office may well want to see proof of relevant qualifications such as completed degree course or comparable vocational qualification. To speed up the process of having your tax registration form checked, you can submit such documents when registering. It is not always easy to determine which professions are classified as Freie Berufe (liberal professions) and thus qualify for “Freiberufler-Status”. The tax office has the final say on whether your work is classified, from a taxation perspective, as a liberal profession or a trade (Gewerbe). Good to know: Gewerbe ist not only the sale of products but also includes services as well as craft activities. Gewerbe is defined as any planned, permanent self-employed activity undertaken with the intention of making a profit, with the exception of agriculture, forestry and the liberal professions.
- It often happens that people who see themselves as liberal professions, successfully register with the tax office without any questions arising. These people then frequently and incorrectly assume that they are thus automatically recognized as a liberal profession. If, despite doubts, you register as a liberal profession, no harm will be done as long as you are not subsequently classified as a tradesperson following an audit. It can be very expensive if you are later classified as a tradesperson and have to pay trade tax retrospectively. In some cases it might even occur that the tax office accepts liberal profession status while the trades’ office (Gewerbeamt) demands that you register as a tradesperson.
- For example, the trades’ authorities recognize teaching as a liberal profession’s activity only if you can prove you have a degree from a university or university of applied sciences. Please see our special information for coaching, teaching and consulting activities.