Opening a company in Germany: locals, foreigners, freelancers and digital nomads

At a glance: GmbH (25,000 euros capital, 12,500 paid in) or UG from 1 euro, notary plus Handelsregister in 2 to 6 weeks, about 30 percent total tax on company profit, VAT exemption up to 25,000 euros, no nomad visa but a freelancer residence permit. Legal forms. Sole trader (Einzelunternehmen) or Freiberufler for liberal professions: no capital, no register entry for most. GmbH: 25,000 euros, at least 12,500 paid before registration. UG (haftungsbeschraenkt): from 1 euro, 25 percent of profit retained until 25,000 euros. AG: 50,000 euros. Registration. Companies: notarial deed (video notarisation available), entry in the Handelsregister at the local court (about 150 euros), Gewerbeanmeldung at the municipality (15 to 65 euros), tax questionnaire via ELSTER. Time 2 to 6 weeks; sole traders start the same day. Typical GmbH formation 700 to 1,500 euros excluding capital; a UG with the model protocol is cheaper. Transparency register filing required; a domestic business address must be registered. Taxes 2026. Corporate tax 15 percent plus 5.5 percent solidarity surcharge (15.825) plus municipal trade tax 7 to 17 percent: about 30 percent in total. Scheduled cuts bring the federal rate to 10 percent by 2032. Dividends 26.375 percent withholding. VAT 19 percent (7 reduced); small-business exemption if last year's turnover was at most 25,000 euros and this year's stays under 100,000. Top personal rate 45 percent above 277,825 euros plus surcharge. Freelancers and the self-employed. Freiberufler (IT consultants, engineers, doctors, lawyers, artists, teachers and other catalogue professions) register only with the tax office: no trade licence, no chamber, no trade tax. Trades register a Gewerbe; trade tax starts above 24,500 euros profit. No flat-rate income regime. Health insurance is the main fixed cost: statutory cover for the self-employed from about 270 euros a month in 2026 (minimum base 1,318.33 euros); pension insurance voluntary for most, compulsory for crafts, teachers, midwives and artists. Foreigners. EU/EEA/Swiss citizens register their address and start. Non-EU founders apply for a residence permit for self-employment (section 21 AufenthG): commercial founders show economic interest, financing and a business plan reviewed with the chamber; liberal professionals show livelihood and client letters; applicants over 45 show pension provision; up to three years, settlement permit after three; fee 100 euros. No resident director requirement, 100 percent foreign ownership allowed. Opening a bank account is the slowest step for non-residents; fintech banks help. Branch of a foreign company. Zweigniederlassung registered through a notary in the Handelsregister with apostilled parent documents and German translations, plus Gewerbeanmeldung; a branch manager with power of attorney is registered, no residency rule. Taxed as a permanent establishment at the company rates above, no remittance tax. A GmbH subsidiary is the usual choice. Digital nomads. No digital nomad visa. The Freiberufler permit is the practical route: business plan, two or three letters of intent from clients (German clients help), about 1,000 to 1,200 euros a month of livelihood, German health insurance; one to three years, family may join, visa-exempt nationals (US, UK, Canada, Australia, Japan and others) can apply inside Germany. Residents pay German tax on worldwide income. Changed recently. VAT exemption 25,000 / 100,000 euros (2025); e-invoicing: all businesses must receive e-invoices since 2025, issue from 2027 (large) and 2028 (all); 30 percent declining depreciation to 2027 and corporate rate cuts from 2028 (Investment Booster, July 2025); basic allowance 12,348 euros (2026). Figures checked October 2026 from IHK, tax and immigration advisers; thresholds and fees change yearly. Confirm with a licensed adviser in Germany before you file.