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
- When do I register?
You have to inform the tax office no later than one month after starting your self-employment. There will be no further requests from the tax office! - Where do I register?
The tax office responsible for you is determined by where you generate your income. In Munich turn to the Munich Tax Office (Finanzamt München). - Can I use my home address?
Working from home by establishing a dedicated office space in their apartment or house is an option for many entrepreneurs. However, it requires careful navigation of various legal and regulatory frameworks to ensure compliance. Learn more in chapter Working out of your home: legal restrictions.
Registration with the tax office is paperless, as all tax registration questionnaires are now only available online free of charge via the tax administration’s service portal, known as the ELSTER portal. You will also find most tax forms there. Depending on your legal form, you will need the “Fragebogen zur steuerlichen Erfassung” (“Tax Assessment Questionnaire”) form to get started. 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, see FAQ Tax numbers in Germany and their purposes.
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 Gewerbe following an audit. It can be very expensive if you are later classified as a Gewerbe and have to pay trade tax retrospectively. In some cases it might even occur that the tax office accepts liberal profession status while the business licence office (Gewerbeamt) demands that you register as a Gewerbe.
- For example, the business licence office (Gewerbeamt) 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.
Further Steps
Please check, if you are obliged to register with other institutions and authorities such as the social insurance agencies, if you require any official licenses or permits and which rules and regulations might be important when running your business.