Freelance visa (Freiberufler): profit forecast and taxes

First: Who are Freiberufler?
Freelance work in Germany includes professions known as Freie Berufe. These are non-commercial professions and usually do not require Gewerbe registration, such as:
Doctors, lawyers, translators, journalists, designers, programmers, consultants, photographers, teachers, etc.
They are defined in § 18 EStG (Income Tax Act).

Second: Expected profit plan (Ertragsvorschau)
When applying for a Freiberufler visa, the foreigners authority often asks for a plan showing that you can support yourself without social benefits. This plan is usually submitted as:
“Ertragsvorschau” or “Rentabilitätsvorschau.”

What should the plan include?

1. Business overview
   A clear professional description of your freelance activity, target audience, and potential client market.

2. Monthly income estimate
   Realistic, preferably for 12 months, reflecting a gradual start and later growth (e.g., month 1: €800, month 3: €1,200, month 6: €1,800, …).

3. Expense breakdown

• Rent (if you have an office)

• Health insurance

• Equipment and software

• Internet and phone

• Transportation

• Marketing costs

• Tax advisor (if any)

4. Net profit (Gewinn)
   Income – expenses = expected net profit.

General rule: net profit should exceed €934 per month (2025) to cover the minimum cost of living.

Third: Taxes a freelancer pays in Germany

1) Income tax (Einkommensteuer)

• Levied on net profit (not total turnover).

• There is an annual tax-free allowance up to €11,604 (2025).

• Above that, tax starts at around 14% and can gradually rise up to 42%.

2) VAT / Sales tax (Umsatzsteuer)

• Charged on invoices at 19% or 7%, depending on the service.

• You may be exempt if annual revenue does not exceed €22,000, under the Kleinunternehmerregelung.

3) Health insurance contributions

• Mandatory for every self-employed person.

• Typically €200–€900 per month, depending on income and whether insurance is public or private.

Fourth: Simple example of a first-year profit forecast

The annual net profit (€12,000) is above the minimum level needed to support yourself, which strengthens your visa chances.

Fifth: Tax registration after arrival

• Submit the “Fragebogen zur steuerlichen Erfassung” via ELSTER → you receive a Steuernummer.

• Issue invoices with required details:

  • Name and address

  • Invoice number

  • Service date

  • Amount with/without VAT

  • Steuernummer

• File an annual tax return: Einkommensteuererklärung

Conclusion
To obtain a freelance visa, you must submit a realistic profit forecast proving you can cover living costs, along with a clear understanding of your tax obligations as a freelancer. This plan is a key foundation through which authorities evaluate your seriousness and the sustainability of your activity.

ـ The site’s writers and editors aim to provide accurate information through extensive research and multiple sources. However, errors may occur or some information may be unconfirmed. Please treat the content as initial guidance and always consult the competent authorities for verified information.