Summary
Setting up as a freelancer in Germany means you work independently on contracts, typically for multiple clients, without being treated as an employee. You must choose whether you qualify as a liberal professional / Freiberufler or a commercial trader, since this distinction impacts tax and registration obligations. The risk of false self-employment is real if you rely on a single client or lack independent control. Being aware of these rules helps you set up correctly and protect your status from day one.
Contents
What is a freelancer in Germany?
A freelancer is a self-employed professional who provides services to clients on a contractual basis. Freelancers are not employees and therefore work independently, are not integrated into a client’s internal workflow, and are not subject to mandatory social insurance contributions. They may work for several clients at the same time, unless an exclusive project agreement applies.
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- Service in English
- Fast registration
- Optional accounting services
Freelancers can offer their services in different ways, such as:
- Individual or recurring assignments
- Project-based contract work over a defined period
Depending on the agreement, payment is made either as a fixed fee or on an hourly/day-rate basis, depending on the industry and type of service.
Understanding freelancing in Germany
As a freelancer in Germany, you:
- are self-employed;
- are not bound by employer-style instructions;
- choose your own working hours and workplace;
- have no obligation to pay social security (unless voluntarily insured);
- work on a contractual and time-limited basis;
- acquire and serve multiple clients independently.
Freelancer vs. Freiberufler: What’s the difference?
The terms freelancer and Freiberufler are often confused, especially in English. In Germany, a Freiberufler is a member of one of the legally defined liberal professions 💬Katalogberufe, such as doctors, journalists, lawyers or architects. This status comes with specific tax advantages.
The word freelancer, on the other hand, refers only to the type of working relationship—someone who is self-employed and works for clients on a contract basis. It does not necessarily indicate a liberal profession or tax category.
Freelancers can be Freiberufler, but in most cases they are commercial traders and have to register at the trade office and pay trade tax. If you work in a liberal profession as a Freiberufler you can call yourself freelancer as well and you don’t have to pay trade tax.
Want to start a Freiberufler business?
How to register as a freelancer in Germany
If you want to work as a self-employed freelancer in Germany, you must complete the correct administrative steps before starting. The process depends on whether your profession qualifies as a Freiberufler or not.
Freelancing as a Freiberufler
If your profession belongs to the legally recognised group of Freiberufler / liberal professionals (for example: doctors, architects, journalists, lawyers), your first step is to notify the local tax office and request a tax number.
If the tax office confirms your Freiberufler status, you are exempt from trade tax and you do not need to register with the local trade office.
Freelancing as a commercial trader
If your profession does not qualify as a liberal profession, you must submit a trade registration before you start freelancing. You are then classified as a commercial trader and must pay trade tax on your business income.
Pros & cons of being a Freelancer
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Risk of false self-employment
As a freelancer in Germany, you must stay alert to the risk of false self-employment. This occurs when, in practice, you work like an employee even though you have a freelance contract and not an employment contract. In such cases, the authorities may decide that you are not genuinely self-employed.
Warning signs include being integrated into a client’s internal workflow, working long-term for only one client, or earning the majority of your income from a single client.
False self-employment can lead to serious consequences. Your client may be required to pay social security contributions retroactively, and the authorities may revoke your self-employed status.
Checklist to avoid false self-employment
The following questions reflect how the German authorities assess employment status. If you answer “yes” to several of them, there is a high risk that your role may be classified as false self-employment:
- Do you work for only one client?
- Do you work primarily at the client’s premises?
- Do you earn more than 5/6 of your annual income from one client?
- Do you work alone without hiring staff who are subject to social security?
- Does the client have the right to give you instructions on how, when, or where to work?
If the authorities conduct a status check, they will analyse the actual nature of the working relationship with each client. The number of clients is only one factor—what matters most is how independently you work.
Advantages and disadvantages of hiring freelancers
What a freelancer contract should contain
Before signing any freelance agreement, make sure you understand what a solid contract should include. Many chambers of commerce offer sample freelancer contracts that you can download for guidance. These templates give you a good starting point, but they should always be adapted to your specific situation.
To minimise the risk of false self-employment, create your own checklist based on the criteria listed above and ensure that each point is addressed clearly in the contract. These aspects should be discussed openly with your client before the agreement is signed.
A well-structured freelancer contract should clearly specify:
- Scope of work — What tasks you are responsible for and what deliverables are expected.
- Project duration — Start date, end date and any milestones.
- Remuneration — Fixed fee or hourly rate, invoicing cycle and payment terms.
- Independence — Clarification that you work autonomously and are not bound by instructions like an employee.
- Working location — Confirmation that you are free to choose your workplace unless project-specific exceptions apply.
- No exclusivity — Your right to work for other clients simultaneously.
- Provision of equipment — Whether you use your own tools and devices.
- Liability and insurance — Responsibilities for damage, delays or errors.
- Confidentiality — Handling client data and sensitive information.
- Termination conditions — How either party can end the contract.
Ensuring these points are included helps establish a clear, transparent working relationship and reduces your legal risk. A well-drafted contract is one of the strongest safeguards against being classified as falsely self-employed.
Freelancers and client acquisition
Freelancers can win new clients in many different ways. The most effective channels are often a mix of online platforms, networking and a strong personal brand.
Freelance portals
Online marketplaces are among the most popular places to find freelance jobs. On these platforms, freelancers can acquire clients nationally and internationally. However, be cautious: on many global platforms, price dumping is common, with freelancers undercutting each other to secure projects. Always review the terms of use carefully before signing up.
Social networks
Social media can be a powerful presentation tool. By showcasing your work and expertise, you can attract potential clients who might never find you otherwise. Platforms such as LinkedIn, Instagram or industry-specific networks can significantly increase your visibility.
Recommendations
Word-of-mouth remains one of the strongest acquisition channels. Satisfied clients recommending your services is invaluable. A professional website and participation in networking events can further strengthen your reputation and lead to new referrals.
Your own website
An optimised, professional website acts as your digital business card. It builds trust, demonstrates expertise and can attract clients through search engines without ongoing advertising costs. For many industries, a well-designed website is considered essential.
Conclusion
Operating legally as a freelancer in Germany offers flexibility and autonomy, but you must comply with the correct registration and tax rules. Decide early if your activity qualifies as a liberal profession or trade—this influences your liabilities and obligations. Avoiding dependency on one client and maintaining your autonomy helps reduce the risk of questions about your employment status. Staying informed, using clear contracts and fulfilling your responsibilities strengthens your freelance business and builds trust with clients and authorities.
