I am an EU citizen and going to move to Germany as a permanent resident. I would like to offer (online) services as “Ernährungsberaterin" to customers in Germany and abroad. What type of business should I have? Would I be "Gewerbetreibende" or "Freiberufler"? What taxes and how much would I pay, if the business is small - like under 18,000 Euro per year? Can I start the business, before I am physically in Germany?
Thank you for your inquiry and your interest in setting up a business in Germany. Make it in Germany provides international professionals with information on working and living in Germany. Detailed information on setting up a business are also available on “Make it in Germany”.
As an EU citizen you are free to be self-employed and run a business in Germany. There are two ways of setting up a business: You can either work as a freelancer (“Freiberufler”) or set up a business as a self-employed entrepreneur (“Gewerbe”). Being self-employed or a freelancer makes a difference with regard to certain formalities and has an impact on your company’s legal structure. Your local tax office will decide whether your profession is considered “freiberuflich” or “gewerblich”, once you register your business. Register your business no later than four weeks after you started your activities. Find out more about the two ways of setting up a business.
As an entrepreneur in Germany, you will have to pay taxes to the tax office, which is the local authority of Germany’s financial administration. Amongst other factors, the type of taxes you need to pay depends on your company’s size and legal structure as well as on your earnings. The legal structure provides a framework for dealing with legal matters and has significant implications - for example, it will determine how much equity you need and whether you are personally liable for your business. Before you choose a legal form for your business, it makes sense to consult a lawyer or tax advisor. Find out more about taxes, insurances and laws on “Make it in Germany”.
Reference: Justina Godesberg
Projekt „Make it in Germany“
Institut der deutschen Wirtschaft Köln e.V.
Mai 2020
