Best Business Bank Account for Freelancers 🇩🇪 [2024]

Germany is a great place for freelancers and self-employed businesses due to its easy freelancer visa for foreigners and they can enjoy other facilities and a perfect German lifestyle after moving to Germany.

Comparison of the Best Business Bank Account

Freelancing and Self-employment in Germany

A freelancer is a person who is not employed but earns independently through a legally allowed profession in Germany. They do not act as a business or a partnership. According to The german income tax Act and the Partnership companies Act, the free professions include translators, pilots, dentists, physiotherapists, journalists, interpreters, image reporters, economists, advisory bodies, accountants, naturopaths, engineers, trade chemists, notaries, lawyers, dentists, doctors, teachers, educators, lecturers, writers, scientists, and artists. 

If you employ other technically trained workers to exercise these free professions, it is called self-employment. You need to open your bank account to deal with your financial matters.

Separate Bank Account for your Freelancer or Self-employed Business

If you are working as a freelancer or self-employed, opening a bank account is not necessary by law as you can use international banking through your current bank account but it would cost a lot, so have a separate business account in Germany to manage your year-end declaration of taxes and other transactions which can be done through Tax Declaration Softwares for Germans & Expats or Getsorted. With the same bank account for private and business dealings, you would face transparency issues. Business accounts offer services like invoice sending, payment receiving, salary payouts, and tax calculations, but private accounts would not offer these services.

Beware !! Not all Country’s Passport is accepted by German Fintech Banks.

German Fintech Bank accounts don’t accept all Passports. For example, Some passport is not accepted by banks such as, FRYST. Inquire before making the final decision if they accept your passport or not. If your application is rejected, it will have a negative impact on your schufa score. To avoid rejection, try traditional banks or business bank account from Wise and Revolut

Open a Business Bank account

Freelancers (Freiberufler)

Being a freelancer, submit your passport, German or European residence permit, identity card, and official registered address (Anmeldung) registration certificate issued by the residential registration office to open a bank account.

Self-Employed (Tradesperson)

Being self-employed, show your business registration

(Gewerbeanmeldung) issued by the trade office (Gewerbeamt) along with your identity card, official registered address in Germany (Anmeldung), and German Tax ID Number (Steuer-ID) to open your bank account.

Corporation or Business Partnership (Personengesellschaften)

It is legally required to open a separate business bank account for corporations. You need to submit your ID or passport, business registration (Gewerbeanmeldung), SCHUFA or credit score, bank statement of your private account, income proof, or pay slips for your last three months Terms of association (Gesellschaftsvertrag), shareholders list (Gesellschafterliste), Commercial registration (Handelsregisterauszug), shareholders’ account authorization (Kontovollmachten für Gesellschafter) to open a business bank account for your corporation or partnership.

Kinds of Business Bank Accounts

Here are 3 types:

• Direct Banks (Direkt-Banks)
• Traditional Banks
• Mobile or Fintech Banks

Direct Banks (Direkt-Banks)

• Serves customers by telephone, online, or mail services
• No branches
• 24 hours available 
• Advanced safety standards
• Free customer services 
• Lower costs
• Can open account even if you are outside the country.

Top Direct Banks

• Fidor
• DKB

Traditional Banks (Filial Bank)

• Traditional banking institution with a proper network
• Branches in every large German city
• Advanced customer service
• Suitable terms and conditions

Popular Traditional Banks

• Deutsche Bank
• Postbank
• Commerz bank

Mobile or Fintech Banks (Mobile-Bank)

• Popularly as M-Banking 
• Convenient for transactions
• Less reliability on cash
• Manage your account using a smartphone
• No opening and closing hours
• Eco-friendly (zero paperwork)

Fintech Mobile Banks

• Holvi
• Kontist
• Qonto
• FYRST

Cost to Manage Business Account

Managing business account is never free and the cost depends on the services you need such as opening foreign currency accounts, making regular cash deposits, and withdrawals, EC, or business cards for business partners. Normal account management costs up to 90 Euros per month.

Famous Banks for Freelancers and Self Employed

Here are the popular banks for  foreigners to open a business bank account as a freelancer or self-employed in Germany.

Qonto

A French digital banking company serving with German IBAN offering services to small businesses and freelancers.

FYRST

A new business-dedicated digital bank was formed by two major banks Postbank and Deutsche Bank in Germany

N26

A leading digital bank established in 2013 in Berlin, offering normal and business bank accounts for freelancers and self-employed people.

Kontist

A famous Berlin Based bank offering online account opening for self-employed and freelancers. Their fee is very reasonable for premium features.

Holvi

A Finland based digital bank offers business bank account services in 9 Euros per month and can be upgraded to get premium features.

Criteria to Choose best bank to Open Your Business Bank Account

Choose best bank based on these features;

• Account management fees
• Transactions cost (cash withdrawal and cash deposit)
• Free Debit card/MasterCard
• Number of free transactions
• Terms and conditions
• Customer services in different languages
• Interest rate
• German IBAN
• Online management of accounts (payments, invoices, transactions) 
• Cash back rewards

Conclusion

You will find a lot of banks in germany offering great services for freelancers and self-employed. Being expat in germany, do a thorough research and get all information about the bank you want to choose. Carefully read the terms and condition before opening your business bank account and do not forget to check the costs. Choose a bank that offer all services you need.