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Guide · 2026

Becoming self-employed: cover, obligations and deadlines

When you become self-employed, you lose the protection that employees get automatically through their employer and social insurance: you pay for health and long-term care insurance on your own, and you usually have to provide for retirement and unemployment yourself. This guide explains what is compulsory in 2026, which deadlines apply and which risks to check before you start – including if you are new to Germany.

By Mahdi Barzkar, insurance broker (section 34d(1) GewO) ·

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Health and long-term care insurance: statutory or private

You must have health insurance as a self-employed person too – statutory (SGB V) or private (§ 193(3) VVG). Long-term care insurance follows it. Your choice is often hard to reverse later.

01

Voluntary statutory insurance

If self-employment is your main occupation, you are not compulsorily insured in statutory health insurance (GKV), but you can be a voluntary member. If you were insured in the GKV immediately before, for example through your employer or family insurance, your membership with the health insurance fund (Krankenkasse) usually continues automatically on a voluntary basis (§ 188(4) SGB V). Without this direct link, for example after a period abroad, you need a previous insurance period to join: 24 months in the last five years or twelve months without interruption immediately before (§ 9 SGB V); you must join within three months.

02

New to Germany

Periods in the statutory health insurance of an EU or EEA country or Switzerland usually count; insurance periods from other countries usually do not. If you come from a non-EU country and start straight away as self-employed, private insurance is therefore often your only option. Private insurers must then accept you at least in the basic tariff (Basistarif) – without risk surcharges or exclusions for pre-existing conditions.

03

GKV contributions in 2026

Your contribution is based on your income according to your income tax assessment, with a minimum basis of €1,318.33 and a maximum of €5,812.50 a month. With the average additional contribution (2.9%), health insurance therefore costs at least €222.80 without and €230.71 with sickness benefit. Long-term care insurance comes on top at 3.6%, or 4.2% if you are 23 or older and have no children, and less with several children under 25. The fund makes a final calculation once it has your tax assessment; if you do not submit it, it can charge the maximum contribution.

04

Sickness benefit (Krankengeld)

Without an election, the reduced rate of 14.0% applies – and there is no sickness benefit. With an election declaration (Wahlerklärung) you pay the general rate of 14.6% and receive sickness benefit from the seventh week of incapacity for work, usually 70% of the earned income on which your contributions were based. The declaration binds you for three years. Optional tariffs (Wahltarife) or private daily sickness allowance can pay earlier.

05

Private health insurance

The premium depends on your age at entry, your health and the cover you choose – not on your income. Before accepting you, the insurer asks health questions; pre-existing conditions can lead to surcharges or exclusions. Spouses and children need their own policies. Self-employed people can only return to the GKV if they become compulsorily insured again, for example through employment below the compulsory insurance threshold – from age 55 this is hardly possible.

Pension: usually not compulsory – with important exceptions

Most self-employed people are not covered by compulsory pension insurance and have to make their own provision. Some occupational groups, however, are compulsorily insured by law (§ 2 SGB VI).

  • Compulsorily insured self-employed people: for example teachers, educators and carers without employees subject to social insurance, midwives, craftspeople entered in the register of crafts (Handwerksrolle) and people who, without employees, work permanently and essentially for only one client. Up to €603 a month you remain exempt. You must register yourself with the German Pension Insurance (Deutsche Rentenversicherung) within three months.
  • Artists and publicists: they are covered for pension, health and long-term care insurance through the Artists' Social Insurance Fund (Künstlersozialkasse, KSK) and pay only half of the contributions. As a rule, this requires at least €3,900 of earned income a year; an exception applies in the first three years in the profession.
  • Contributions in 2026: the standard contribution (Regelbeitrag) is €735.63 a month (18.6%). In the year you start and the three following calendar years you can choose half the standard contribution, €367.82. With a tax assessment, an income-related contribution is also possible.
  • Compulsory insurance on application: if you are not compulsorily insured, you can apply for it within five years of starting (§ 4 SGB VI). Important: for a reduced earning capacity pension (Erwerbsminderungsrente) you generally need three years of compulsory contributions in the last five years.
  • Voluntary contributions: in 2026 between €112.16 and €1,571.70 a month, freely chosen. They increase your old-age pension but usually do not secure entitlement to a reduced earning capacity pension.
  • Private provision: the basic pension (Basisrente, “Rürup”), private pension insurance or your own investments differ significantly in tax relief, costs and flexibility.
  • Planned, not yet decided: in June 2026 the pension commission (Alterssicherungskommission) recommended including self-employed people in statutory pension insurance from a cut-off date; the Federal Government intends to implement this. There is no law yet (as of September 2026).

Unemployment insurance and start-up grant

Self-employed people are not automatically insured against unemployment. If you were employed before, however, you can keep this protection.

  • Insurance on application: possible if you were compulsorily insured for at least twelve months in the 30 months before starting, or received unemployment benefit immediately before, and you work at least 15 hours a week in your business (§ 28a SGB III). The application must be made to the employment agency (Agentur für Arbeit) within three months of starting.
  • Contribution in 2026: €102.83 a month, half (€51.42) in the year you start and the following calendar year. You can cancel at the earliest after five years. If you have already interrupted your self-employment twice and claimed unemployment benefit, you cannot insure yourself again.
  • Start-up grant (Gründungszuschuss): if you receive unemployment benefit and still have at least 150 days of entitlement when you start, you can apply before your self-employment begins. You need at least 15 hours a week and a statement from an expert body, such as the chamber of commerce (IHK) or a tax adviser. For six months you receive your unemployment benefit plus €300, then on application €300 for nine more months – as a discretionary benefit with no legal entitlement.
  • New to Germany: without previous employment subject to compulsory insurance in Germany, both routes are usually closed to you.

Liability: legal form and the right liability cover

If you cause damage in your work, you are liable for it – often for large sums. How far your private assets are at risk depends on the legal form.

01

Legal form

As a sole trader (Einzelunternehmen) or in a civil-law partnership (GbR), you are liable without limit with your private assets. With a GmbH (minimum share capital €25,000) or a UG (haftungsbeschränkt, from €1), as a rule only the company's assets are liable. But banks usually require a personal guarantee for loans, and managing directors can be personally liable if they breach their duties.

02

Business liability insurance

It pays if people are injured or property is damaged in the course of your business – for example if a customer falls in your shop or you drill into a pipe at a customer's home – and defends you against unjustified claims. What matters is a sufficient limit of cover and a precise description of your activity: whatever is missing from the policy is often not covered.

03

Professional indemnity and financial loss liability

Advisory and planning professions often cause pure financial loss – for example through a calculation error, a missed deadline or faulty software. Professional indemnity or financial loss liability insurance (Berufs- or Vermögensschadenhaftpflicht) covers this. For some professions it is compulsory, for example lawyers, tax advisers, doctors, architects, property managers and insurance and financial investment intermediaries. Laws or professional chambers set the minimum sums.

04

Personal liability is not enough

Personal liability insurance covers damage from your private life. Damage arising from professional or commercial activity is usually excluded – even for a small side business. Some policies expressly include certain side activities. Only rely on this if your policy confirms it in writing.

Other risks: earning capacity, premises, legal disputes, data

First check the risks you could not bear financially yourself.

  • Occupational disability: without compulsory contributions there is usually no statutory reduced earning capacity pension. Private occupational disability insurance depends on your occupation, age and health; for self-employed people, insurers often check whether a reasonable reorganisation of the business is possible.
  • Daily sickness allowance: rent, loans and business costs continue when you are ill. Private daily sickness allowance insurance pays from an agreed day, also as a supplement to the GKV.
  • Statutory accident insurance (Berufsgenossenschaft): you register your business with the responsible statutory accident insurer. You yourself are usually not insured automatically but can take out voluntary cover; in some sectors, such as transport, it is compulsory.
  • Contents and business interruption: contents insurance replaces furnishings, equipment and goods after fire, escape of water, burglary or storm; business interruption insurance then pays ongoing costs and lost profit.
  • Business legal expenses insurance: helps, for example, in disputes with employees or authorities; disputes arising from contracts with customers are often not covered or only to a limited extent.
  • Cyber insurance: depending on the policy, pays after hacker attacks or data loss, for example for recovery, business interruption and third-party claims; it usually requires basic protection such as updates and backups.

Registration and tax: deadlines and figures for 2026

It is best to clarify individual tax questions with a tax adviser.

  • Trade or liberal profession: traders register with the trade office (Gewerbeamt, § 14 GewO), which informs the tax office, the Berufsgenossenschaft and the chamber. Liberal professions under § 18 EStG, such as doctors, journalists or translators, do not register a trade and do not pay trade tax. For trade tax, sole traders and partnerships have an annual allowance of €24,500.
  • Tax registration questionnaire (Fragebogen zur steuerlichen Erfassung): send it to the tax office electronically via ELSTER within one month of starting; you then receive your tax number.
  • Small business scheme (Kleinunternehmerregelung): since 2025 you do not charge VAT if your turnover was no more than €25,000 in the previous year and does not exceed €100,000 in the current year; in the year you start, the limit is €25,000. If you exceed €100,000, standard taxation applies immediately. Small businesses cannot deduct input VAT.
  • Advance payments: based on your profit estimate, the tax office sets income tax advance payments (10 March, 10 June, 10 September, 10 December). After your first tax return, a back payment and higher advance payments can fall due at the same time.
  • Residence permit: if you are not from the EU, the EEA or Switzerland, you need a permit that allows self-employment (§ 21 AufenthG). If you are over 45, you usually have to prove adequate retirement provision for this permit.

Checklist: before and after starting your business

Skip what does not apply to you. The order follows the deadlines.

  1. Apply for the start-up grant before you start: only if you receive unemployment benefit; the application must be made before your self-employment begins.
  2. Arrange health insurance without a gap: tell your health insurance fund that you are becoming self-employed and clarify your voluntary membership – or apply for private health insurance in good time.
  3. Register a trade or clarify liberal profession status: trade office or directly the tax office; obtain any required licence beforehand.
  4. Register for tax within one month: submit the questionnaire via ELSTER and decide on the small business scheme.
  5. Clarify pension insurance: if you are compulsorily insured, register within three months; otherwise choose between compulsory insurance on application, voluntary contributions and private provision.
  6. Apply for unemployment insurance within three months: only possible if you meet the previous insurance requirement.
  7. Take out liability cover before your first job: suited to your activity; for compulsory insurance, keep proof ready for the chamber or authority.
  8. Protect your income and build a reserve: check sickness benefit or daily sickness allowance and occupational disability cover; set aside a fixed share of every payment for tax and back payments.

This content provides general orientation. Situations and benefits mentioned are examples; the specific need, policy terms and individual advice are decisive. It does not state a price, acceptance or cover decision.

Related guides

Health insuranceBusiness and professional liability insuranceDaily sickness allowance insuranceOccupational disability insuranceGerman insurance terms explainedTrade tax calculatorVAT calculatorDisability cover calculator

Frequently asked questions

Do I need health insurance as a self-employed person?

Yes. Everyone resident in Germany must have health insurance – statutory or private. If you were insured in the GKV immediately before, you can usually stay on as a voluntary member; otherwise usually only private health insurance remains. If you have been uninsured for a while, expect back payments or surcharges.

Can I join statutory health insurance as a newcomer from a non-EU country?

Usually not directly as a self-employed person: insurance periods from countries outside the EU, the EEA and Switzerland generally do not count. It often works if you are first in employment subject to compulsory insurance in Germany: when you then become self-employed, your membership usually continues on a voluntary basis.

Is my personal liability insurance enough for self-employment?

Usually not: professional and commercial activities are generally excluded. Business liability insurance covers personal injury and property damage in your business; professional indemnity or financial loss liability insurance covers pure financial loss.

Will pension insurance become compulsory for all self-employed people?

It is planned but not decided: in 2026 the pension commission recommended including self-employed people from a cut-off date, and the Federal Government intends to implement this. Until there is a law, the existing rules apply.

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