How to Register a Side Business in Germany (Nebengewerbe) 2026
Diana
Updated on:
Registering a Nebengewerbe — a side business in Germany — is faster than most people expect: one form at the Gewerbeamt (trade office), a fee between 20 and 65 euros, done. The complications come from everything around it: when you actually need to register, how your employer fits in, which taxes hit you, and the health insurance rules that catch people out. Here's the complete 2026 guide.
What counts as a Nebengewerbe?
A Nebengewerbe is a commercial activity you run alongside your main job — whether you're employed, on parental leave, studying, or retired. Legally, "Nebengewerbe" isn't an official category. For the trade office and the tax office it's simply a business you must register the moment you act with the intention of regularly making a profit.
The distinction "main" vs. "side" matters mostly for health insurance. The Krankenkasse looks at two things: weekly hours and income from the business. As long as both stay below the threshold for "primary self-employment" (rule of thumb: under roughly 18-20 hours per week, and earnings lower than from your main job), you stay on your existing coverage.
Do you actually need to register? Yes, the moment your activity is ongoing and profit-oriented. Selling old furniture once on Kleinanzeigen: not a business. Selling handmade tote bags on Etsy every week: yes, business. If you're unsure whether you even need a Gewerbe, the article on Freiberufler vs. Gewerbe is the right starting point — freelancers in catalog professions (writers, designers, IT consultants, coaches under certain conditions) don't need to register at the Gewerbeamt at all.
Run your side business cleanly from day one.
With Norman you write compliant invoices, capture receipts by photo and book everything automatically — no more spreadsheet math at year end.
Freelancer or Gewerbe? Check first, register second
Before you go to the Gewerbeamt, settle the bigger question: do you even fall under "Gewerbe"? § 18 EStG lists the freie Berufe — the catalog professions and "similar professions". Typical examples:
Freelancer (no Gewerbe registration): writers, journalists, translators, designers, architects, doctors, lawyers, alternative practitioners, consulting engineers, lecturers, artists, programmers doing conceptual or consulting work
Gewerbe (registration at Gewerbeamt required): online shops, trades, retail, restaurants, influencers selling products, photographers focused on weddings, personal trainers, web development as a pure service provider, coaching with product sales
The line isn't always clean — particularly in IT, coaching, and content creation. The tax office ultimately decides based on the actual work. A programmer building independent concepts is a freelancer; one doing standard implementation often counts as Gewerbe. If you qualify as a freelancer, you save the Gewerbe registration, the Gewerbeanmeldung paperwork, the trade tax, and the mandatory IHK fee.
Registering a Nebengewerbe step by step
1. Fill out the GewA 1 form
You need the "Gewerbe-Anmeldung" form (GewA 1). Most cities have it online — either as a PDF download or via an online portal that lets you submit directly. Berlin, Hamburg, Munich and most larger cities now allow digital registration. In smaller towns it's still in person.
Key fields:
Personal data and address
Business address (often your home address, if you work from home)
Exact activity — phrase it precisely, but not too narrowly. "Online retail of home accessories" is better than "selling candles" — otherwise you'll have to re-register every time you add a product category
Start date
Full-time or part-time/side business (tick "Nebenerwerb")
Number of employees (usually 0)
2. Submit your documents
Bring or upload:
ID card or passport with proof of registration (Meldebescheinigung)
Non-EU citizens: residence permit allowing self-employment
For licensed activities (crafts, gastronomy, insurance brokerage, security services): permit or qualification certificate
Registered merchants: Handelsregister extract
3. Pay the fee
The 2026 registration fee runs between 20 and 65 euros depending on the city. Berlin: 26 EUR. Munich: 50 EUR. Hamburg: 20 EUR. Stuttgart: 57.50 EUR. Online registrations are typically cheaper than in-person.
4. Fill out the tax registration questionnaire
After the Gewerbeanmeldung the tax office sends you the Fragebogen zur steuerlichen Erfassung — by post or via ELSTER. You must complete it electronically. This is also where you decide on the Kleinunternehmer (small business) status under § 19 UStG. The outcome: your new tax number, which lets you issue invoices.
5. Wait for the automatic notifications
The Gewerbeamt automatically notifies:
The tax office (Finanzamt)
The Chamber of Commerce (IHK) or Chamber of Crafts (HWK) — mandatory membership; fees are usually low or zero at low side-income levels
The Berufsgenossenschaft (statutory accident insurance)
For registered merchants: the statistics office
You don't have to do anything — the letters arrive over the following weeks.
What does a Nebengewerbe really cost?
The one-time registration is 20-65 EUR. That's just the start. Here are the recurring costs to expect:
Gewerbe registration (one-time) — 20-65 € — Everyone
IHK fee (annual) — 0-200 € — Non-craft trades, scaled to profit; exemption below ~5,200 € trade income
HWK fee (annual) — ~100-300 € — Craft businesses
Berufsgenossenschaft — varies — Mandatory, rate depends on industry
Trade tax (Gewerbesteuer) — 0 € to ~14 % — Only above 24,500 € profit (sole traders & partnerships)
Bookkeeping / software — 0-30 €/month — Anyone issuing invoices
Gewerbesteuer has a tax-free allowance of 24,500 EUR for sole traders and partnerships. If you make 8,000 EUR profit on the side, you pay no trade tax. For most Nebengewerbler it's a non-issue.
Taxes on a side business
Income tax
Your profit from the Nebengewerbe gets added on top of your main-job salary. Example: 45,000 EUR gross from your day job plus 6,000 EUR profit on the side — you're taxed on ~51,000 EUR at your personal marginal rate. Rule of thumb: 30-42 % of your side profit goes to income tax, depending on bracket.
You can simulate your specific situation in the Norman tax calculator — particularly with side income it's worth knowing the load in advance so you can set the money aside.
VAT (Umsatzsteuer)
This is where the Kleinunternehmer rule kicks in. Up to 25,000 EUR revenue the previous year and 100,000 EUR in the current year (as of 2026), you can operate as a Kleinunternehmer — no VAT on invoices, no VAT pre-filings. You issue net invoices with a note referencing § 19 UStG.
If you opt out of the rule (or grow past it), you file VAT monthly or quarterly. For most side hustlers, the Kleinunternehmer rule is the simplest path.
Trade tax (Gewerbesteuer)
Only above 24,500 EUR profit. Anyone whose Nebengewerbe pushes past that is usually already heading toward turning it into a main business.
Health insurance: the expensive trap
This is where many Nebengewerbler stumble. As long as you're employed and covered by statutory health insurance (GKV), you automatically stay there — provided the side business isn't "primary self-employment". The Krankenkassen's rule of thumb: max around 18-20 hours per week, and income from the side business shouldn't exceed your main-job income.
If you're on private health insurance (PKV), the rules are much more relaxed — PKV typically doesn't care.
If you're a student, watch out: more than 20 hours per week of self-employment, or income above the family insurance limit (2026: around 535 EUR per month), pushes you out of cheap student coverage.
If you're on parental leave: more than 30 hours per week jeopardizes your Elterngeld, and side-business profit is counted against the benefit.
Do I have to tell my employer?
Not automatically — but check your contract. Many employment contracts include a notification clause for side activities. A blanket ban is generally only enforceable if your side activity:
Competes directly with your employer
Impairs your performance in the main job
Pushes you over the maximum working hours allowed by law (48 hours per week total)
Either way: a short, transparent heads-up beats getting caught later.
Common mistakes when registering a Nebengewerbe
Registering too late: The Gewerbe has to be registered before the first invoice. Late registration is a regulatory offense (fines up to 1,000 EUR).
Describing the activity too narrowly: "Selling dog leashes" forces you to re-register the moment you also sell collars. Better: "Online retail of pet supplies".
Not keeping receipts: 10 years for invoices, 6 years for other business documents. Decent invoicing software handles this automatically.
Mixing in your private account: You don't legally need a business account, but strict separation will save you hours at tax time.
Not setting taxes aside: Park 30-40 % of profit on a separate account, or you'll meet an unpleasant surprise in summer.
Bookkeeping for a Nebengewerbe: the minimum
Running a Nebengewerbe under the Kleinunternehmer rule means simple cash-basis accounting (Einnahmen-Überschuss-Rechnung, EÜR). No double-entry bookkeeping, no balance sheet. What you need:
An ordered list of revenue and expenses
All receipts (digital is fine; paper can usually be shredded after scanning)
The EÜR form as part of your annual tax return (Anlage EÜR)
With modern accounting software like Norman for sole traders, the year-end takes two hours instead of two weekends — receipts get captured by photo, income gets matched automatically, EÜR is one click. If you're comparing tools, the Norman vs. Lexoffice comparison is a useful starting point.
Bottom line
Registering a Nebengewerbe isn't bureaucratic torture: fill out a form, pay 20-65 euros, wait for your tax number, get started. The real questions come after — telling your Krankenkasse (or checking whether you even need to), documenting income properly, putting tax money aside on time. Build the habit from the first invoice, and the year-end isn't a nightmare — it's a tidy EÜR.