Setting up as a freelancer in Germany can be a process, but as with most things in Germany, if you follow the rules and prepare your paperwork properly and in advance, it’s unlikely you’ll be left wondering if things will be approved.
First up is completing your Anmeldung at a residence somewhere in Germany. Next is getting proper German health insurance. These two items will help you get a residence permit with the right to work if you’re coming from outside of the EU. There are a number of other requirements for receiving a residence permit, and the German authorities provide this information in a number of languages on each of the state websites. The process can also be different for each and every person, and getting expert advice from an immigration lawyer is the best way to prepare to receive your residence permit.
After you’re settled in Germany with a home, insurance, and a residence permit, it’s time to open a business bank account, register at the Finanzamt, get the freelance Steuernummer (different from the Steueridentifikationsnummer), and VAT ID for selling goods and services outside of Germany.
There’s a difference between being a freelancer or Freiberufler in Germany, and being self-employed, or Gewerbetreibender. What you plan to do will help you decide whether your activities are freelance or self-employed (and if you’re coming from outside the EU and applying for a residence permit, as these are two different ones).
Activities that are artistic or scholarly, for example artists, doctors, writers, or translators, are considered freelance professions. The German government has outlined exactly what’s allowed as a freelancer as part of the application process. Other business activities, for example trades and shops, are considered self-employment. As a self-employed person, you’re required to pay trade tax on top of the regular income tax returns and VAT returns.
When registering at the Finanzamt to get the freelance or self-employed specific Steuernummer, you’ll need to fill in a long form called the Fragebogen zur steuerliche Erfassung (here’s the downloadable form). If your German isn’t yet up to scratch, getting help from someone who is makes this form a lot easier.
Now that the paperwork is taken care of, it’s time to talk about process.