Freiberufler or Gewerbetreibender?
Your first decision shapes everything that follows. Freiberufler practise a "liberal profession" listed in § 18 EStG — doctors, lawyers, engineers, architects, scientists, artists, writers, journalists, many IT consultants and similar. They register only with the tax office, pay no trade tax and have no chamber (IHK) membership. Everyone else is a Gewerbetreibender (a trade) with extra steps. If you're unsure which you are, the tax office ultimately decides.
Registering a trade: the Gewerbeanmeldung
If you run a Gewerbe, you must register it with your local Gewerbeamt when the activity starts (§ 14 GewO). The fee is small and set by your municipality — roughly €20–€65. The office forwards your registration to the tax office, the trade-supervisory authority and the IHK or Handwerkskammer, so chamber membership begins automatically. Freiberufler skip this step entirely.
Tax registration: the Fragebogen zur steuerlichen Erfassung
Everyone — Freiberufler and Gewerbetreibende alike — must notify the Finanzamt that they've started, using the Fragebogen zur steuerlichen Erfassung. Since 2021 you submit it electronically via ELSTER, within one month of starting. You then receive a Steuernummer, which you need to issue legally valid invoices.
VAT and the Kleinunternehmer rule
Standard VAT (Umsatzsteuer) is 19% (a reduced 7% applies to some goods and services). But under the Kleinunternehmerregelung (§ 19 UStG) you can be exempt: from 2025 the limits are turnover of ≤ €25,000 in the previous calendar year and ≤ €100,000 in the current year (raised from the old €22,000/€50,000). As a Kleinunternehmer you charge no VAT — but you also cannot reclaim input VAT on your own purchases.
Trade tax (Gewerbesteuer)
Only Gewerbetreibende pay Gewerbesteuer, and even then sole traders and partnerships get a €24,500 tax-free allowance (§ 11 GewStG) before it applies. Freiberufler don't pay it at all. Either way you file an annual income-tax return — see our tax return guide.
A note for non-EU nationals
If you're not an EU/EEA citizen, you need a residence permit that allows self-employment (§ 21 AufenthG, the Aufenthaltserlaubnis zur selbständigen Tätigkeit) before you register — see our freelance visa guide. Build your plan to sequence the visa, the registration and the tax steps in the right order.