The path to self-employment doesn’t have to be a jump into the deep end. Many people choose the safe route of part-time employment – but here, too, there are legal pitfalls and tax obligations that must be taken into account from the start.
Legal requirements and registration requirements
Anyone who becomes self-employed on a part-time basis is subject to the same registration requirements as full-time founders. As the dpa reports, registration with the trade office is required in most industries – the only exceptions are freelance professions such as journalists, lawyers or artists. In addition, every new business start-up must register with the tax office and receive their tax number there.
In many professions, membership in the relevant chamber is also required, such as the Chamber of Crafts or the Chamber of Commerce and Industry. The employer also plays an important role: Even if a general ban on secondary employment is not permitted, employees should inform their boss about their planned self-employment. The employer may only prohibit secondary employment if the company’s legitimate interests are at risk – for example due to direct competition – or if performance in the main job suffers as a result of the additional burden.
Tax specifics and small business regulations
When it comes to taxes, the same rules apply to part-time self-employed people as to full-time self-employed people – with one important exception: the small business regulation can bring considerable relief. Sevdesk reports on the new regulations from 2025: Anyone who made a maximum of 25,000 euros in sales (net) in the previous year and is unlikely to exceed 100,000 euros in the current year can be exempt from sales tax. This means no advance VAT returns and no VAT for invoicing within Germany.
Nevertheless, the income tax liability remains. Income above the basic allowance of 12,096 euros (as of 2025) is taxable, with the tax office adding the profit from the secondary job with the wages from the main job. Traders must also pay trade tax, but only if their annual profit exceeds 24,500 euros. An important point: Anyone who has not previously had to submit a tax return will be obliged to do so when they become self-employed.
Keep an eye on social security and health insurance
A big advantage of part-time self-employment lies in the area of social security. As long as self-employment is actually only a sideline activity, health, nursing care and pension insurance remain in place as part of the main job. It only becomes problematic when working hours and profits from self-employment exceed the main job – then there is a risk of losing compulsory insurance.
As the report by Guhr Steuerberatung shows, if in doubt, self-employed people should apply for a status determination procedure from the pension insurance company in order to provide clarity. The rule of thumb is: spend a maximum of 20 hours per week on part-time work and make sure that your income from self-employment does not exceed 75 percent of your main monthly salary. Self-employed people also have to register with the employers’ liability insurance association – but contributions are usually only due from the first employee.
D. Maier / editorial team finanzen.net
