Freelancer Tax Deductions in Germany: What You Can Write Off

What Can You Deduct as a Freelancer in Germany?

If you’re freelancing in Germany, you’re responsible for your own taxes — but you also get to deduct far more than the average employee. Many freelancers leave €1,000–€2,000 on the table each year simply because they don’t know what qualifies as a deduction.

In short: Freelancers (Freiberufler) in Germany can deduct all business-related expenses — from equipment and travel to insurance and training. There’s no fixed cap, as long as expenses are reasonable and documented.

Business Expenses vs. Income-Related Expenses

As a freelancer, your deductions are called Betriebsausgaben (business expenses) — not Werbungskosten (income-related expenses), which apply to employees. This matters for your tax return:

• Betriebsausgaben (§ 4 Abs. 4 EStG) — expenses caused by your business
• Werbungskosten — only for employees (Anlage N)

You report your business expenses in Anlage S (self-employed income) and the Anlage EÜR (income vs. expenses statement).

Office and Workspace

Home Office Flat Rate

If you work from home, you can claim the Homeoffice-Pauschale: €6 per day, up to €1,260 per year (210 days). No dedicated room required.

Read more in our complete home office guide.

Dedicated Home Office Room (Häusliches Arbeitszimmer)

If you have a separate room used at least 90% for work, you can deduct actual costs: rent (proportional), electricity, heating, internet, and renovations.

External Office or Coworking

Renting an office or coworking space? The full cost is deductible — rent, utilities, and furnishings.

Equipment and Technology

Everything you need for your freelance work is deductible:

• Computer, laptop, tablet — fully deductible in the year of purchase since 2021 (BMF ruling, regardless of price)
• Monitor, keyboard, mouse, headset — immediately deductible
• Smartphone — proportional if also used privately (typically 50–70% business use)
• Printer, scanner, camera — fully deductible for business use
• Software and licenses — Adobe, Microsoft 365, project management tools
• Office furniture — desk, chair, shelving (up to €800 net immediately, above that depreciated)

Tip: For mixed-use devices (e.g., smartphone), document the business share. A 3-month usage log is usually sufficient for the Finanzamt (tax office).

Travel and Commuting

Client Visits

For trips by car, claim the distance allowance (Pendlerpauschale):

• €0.30 per kilometer for the first 20 km
• €0.38 per kilometer from the 21st km onward

Alternatively, deduct actual costs (fuel, insurance, maintenance, depreciation) — but you’ll need a logbook (Fahrtenbuch).

Business Trips

On business trips, you can also deduct:

• Accommodation — actual costs per receipt
• Meal allowance (Verpflegungsmehraufwand) — €14 for 8–24 hours away, €28 for 24+ hours
• Train and flight tickets — fully deductible
• Taxi and public transport — for business purposes

Insurance

Business insurance is fully deductible as a business expense:

• Professional liability insurance (Berufshaftpflicht)
• Legal protection insurance (business portion)
• Cyber insurance
• Disability insurance (Berufsunfähigkeit) — deductible as a special expense (Sonderausgabe)

Your health and long-term care insurance (Kranken- und Pflegeversicherung) is deductible as a special expense, further reducing your taxable income.

Training and Professional Development

Investments in your skills are deductible:

• Seminars, workshops, courses — fees, travel, accommodation
• Online courses — Udemy, Coursera, LinkedIn Learning
• Professional literature — books, journals, digital subscriptions
• Conferences and trade fairs — admission, travel, lodging

Phone and Internet

• Business mobile contract — fully deductible
• Private contract with business use — flat 20% (max €20/month) or by actual share
• Internet connection — proportional for business use (typically 50%)

Marketing and Client Acquisition

• Website — hosting, domain, design, maintenance
• Business cards and printed materials
• Online advertising — Google Ads, social media ads
• Portfolio platforms — Behance, Dribbble, etc.
• Client entertainment — 70% of the bill for business meals (document the occasion and attendees)

Tax Advisory and Bookkeeping

• Tax advisor fees (Steuerberater) — fully deductible
• Accounting software — lexoffice, sevDesk, etc.
• Tax apps like Restio — deductible as a business expense

Common Mistakes to Avoid

1. Not keeping receipts — no receipt, no deduction. Photograph every receipt immediately.
2. Mixing personal and business expenses — use a separate business bank account.
3. Ignoring small amounts — €5 for office supplies adds up over the year.
4. Forgetting depreciation — expensive purchases over €800 net must be depreciated over their useful life (except computers).
5. Missing advance payments (Vorauszahlungen) — the Finanzamt sets quarterly advance tax payments (March 10, June 10, September 10, December 10).

How Restio Helps

Restio keeps freelancers on top of their business expenses:

• Scan receipts — photograph receipts and Restio automatically detects amount, category, and tax relevance
• Discover deductions — the AI tax expert finds deductions you might miss
• Monitor thresholds — the Financial Watchdog alerts you before you exceed the small business threshold
• Purchase decisions — ask Restio before your next purchase to see the tax impact

Try Restio free for 14 days and find your hidden deductions.

Further Reading

• Federal Ministry of Finance: Income Tax
• § 18 EStG — Freelance Activity