Germany splits the self-employed into two categories: Freiberufler (liberal professions) and Gewerbetreibende (commercial traders). Which one you are determines whether you pay trade tax, whether you need to register a business, and how the Finanzamt treats you.
Freiberufler — liberal professions
You are a Freiberufler if your work falls under §18 of the German income tax act (EStG). The law names five types of activity:
- Scientific — researchers, analysts, consultants in scientific fields
- Artistic — designers, photographers, illustrators, musicians
- Literary — translators, journalists, authors
- Teaching and educational — tutors, coaches, trainers
- Healthcare and legal — doctors, dentists, therapists, lawyers, architects, engineers, tax advisors
As a Freiberufler you are exempt from Gewerbesteuer (trade tax) and do not need to register in the Handelsregister (commercial register). You register directly with the Finanzamt when you start.
How to tell: If you have never received a letter about Gewerbesteuer from your Finanzamt, you are almost certainly a Freiberufler.
Gewerbetreibende — commercial traders
You are a Gewerbetreibender if your work is commercial — selling products, running an agency, or offering services that do not fall under the liberal professions list above.
As a Gewerbetreibender you must:
- Register your business at the Gewerbeamt (trade office)
- Pay Gewerbesteuer on annual profits above €24,500
- Keep accounting records according to commercial standards
How to tell: The Finanzamt will have sent you a letter about Gewerbesteuer obligations — either when you registered as self-employed or when your status changed.
Not sure which you are?
Call or email your local Finanzamt branch. Give them your Steuernummer and ask for your status. They will confirm whether you are a Freiberufler or Gewerbetreibender at no charge. If you lost the letters, this is the quickest way to get clarity.
Künstler — artists and the KSK
If you work as a freelance artist, musician, writer, journalist, or performing artist, you may be eligible for the Künstlersozialkasse (KSK) — Germany’s social insurance scheme for creative professionals.
As a KSK member you pay only half of your social insurance contributions (health, care, and pension). The KSK collects the other half from the companies that use your work — clients, publishers, agencies, broadcasters.
To qualify you need to:
- Earn your primary income from artistic or journalistic work
- Work predominantly for commercial clients subject to the KSK levy
- Earn at least around €3,900 per year from your creative work
Membership is not automatic — you apply, and the KSK decides based on your activity. Most working artists, musicians, designers, photographers, journalists, and writers qualify.
Mixed activities
If your work spans both categories — for example, you design websites (Freiberufler) but also sell digital products (commercial) — the rules get more complex. Under the Abfärbetheorie (contamination doctrine), commercial income can pull all your income into Gewerbetreibende territory and make it subject to trade tax. A tax advisor can help you structure this correctly from the start.
In Billino
Add your Steuernummer to your sender profile and Billino puts it on every invoice automatically. If you are a Kleinunternehmer (under €25,000 annual turnover), enable that option and Billino adds the required §19 UStG note to all invoices.
