Anyone setting up as self-employed in Spain is autónomo, whether they’re a designer, a plumber, or a consultant: one single regime, with nuances by activity code. Germany splits the field differently, and that split — not VAT or income-tax rates — is the first thing any freelancer considering billing from there needs to understand.
Freiberufler vs. Gewerbe: the line that changes everything
Germany distinguishes between Freiberufler (liberal professions: doctors, lawyers, consultants, journalists, designers, software developers in many cases) and Gewerbetreibende (commercial/business activity: retail, most services not classified as liberal professions). A Freiberufler doesn’t have to register with the chamber of commerce (IHK) or pay trade tax (Gewerbesteuer), and keeps simpler accounting. A Gewerbetreibende does pay that additional municipal tax and has more formal obligations from the very first euro of activity.
You don’t get to choose the classification freely — it depends on the real nature of your activity, and there are categories where the line is blurry: software development, for example, can fall on either side depending on whether it’s considered intellectual creation or a standardised technical service. This ambiguity generates more queries to German tax advisers than almost any other point of the country’s freelancer taxation.
Kleinunternehmerregelung: the small-business regime, updated for 2026
Regardless of that classification, any freelancer with low turnover can opt into the small-business regime, which exempts them from charging and remitting VAT. Since the 2025 reform, unchanged for 2026:
- Threshold of €25,000 in turnover the previous year (up from €22,000, and now measured net instead of gross).
- Threshold of €100,000 in estimated turnover for the current year.
- Those opting in don’t charge VAT on their invoices and can’t reclaim input VAT — in exchange, since the 2024 tax year they no longer need to file an annual VAT return either, which noticeably simplifies management.
- Since the reform, the regime has been «Europeanised»: it can now also apply to cross-border transactions within the EU, something that used to create friction for anyone billing clients in other countries while under this regime in Germany.
Who it makes sense for compared to Spain
Comparing nominal rates doesn’t clearly favour either country universally — it depends heavily on income level and whether your activity fits as a Freiberufler (lighter admin) or Gewerbe. Where Germany clearly wins over Spain is the simplicity of the small-business regime for someone starting out with low turnover: with no equivalent of a fixed self-employed contribution from the first euro, the early stage of an activity is structurally cheaper than in Spain while turnover stays low.
Where it stops making sense is assuming that, because it’s an EU country with a reputation for order and efficiency, the paperwork will generally be simpler. The Freiberufler-or-Gewerbe classification, and its implications, is exactly the kind of bureaucratic nuance that surprises anyone arriving assuming everything will be easier just because it’s Germany.
In the comments: if you bill in Germany, share whether your Finanzamt (local tax office) classified you as Freiberufler or Gewerbe for your specific activity, and whether you had to argue that classification. It’s the most useful data point you can share for anyone evaluating a similar move.
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Sources: Kleinunternehmerregelung regulations after the 2025 reform (Steuernaut, Vivid, Gründerplattform), Freiberufler/Gewerbe distinction criteria from the German tax authority. This isn’t tax advice — your activity’s classification is decided by your local Finanzamt and should be confirmed with a Steuerberater (German tax adviser) before registering.