Freelance work in Germany: status determination, pension scheme and tax

Short answer: For a freelance lawyer in Germany, status depends mainly on instructions and integration (§ 7 SGB IV). A status determination by the German Pension Insurance (DRV Bund) gives certainty, even before the start (§ 7a SGB IV). A Versorgungswerk exemption applies only per activity (§ 6(5) SGB VI); below set turnover limits, small businesses charge no VAT (§ 19 UStG).

This guide is for lawyers and compliance professionals who want to take on freelance mandates in Germany. It explains how status determination works, what members of a Versorgungswerk (professional pension scheme for lawyers) need to watch, and which VAT rule applies.

When does freelance work count as employment in Germany?

Freelance work counts as employment in Germany if you work under instructions and are integrated into the client's work organisation (§ 7(1) SGB IV, the German Social Code, Book IV). What counts is an overall assessment of the actual circumstances, not the label in the contract.

The Federal Social Court confirmed this in 2022: a clear intention of both parties to agree self-employment does not rule out compulsory insurance. Where someone is integrated into another's business, freedoms in how the work is done only point to self-employment if the absence of instructions makes the activity entrepreneurial overall (BSG, judgment of 28 June 2022, B 12 R 3/20 R).

Typical questions for lawyers (compiled by the editors):

• Does the client set your working hours, place of work and the order of tasks?
• Are you part of teams, cover rotas or the legal department's organisation chart?
• Do you use your own equipment and work for several clients?
• Do you owe a defined result or your working time?

Status determination procedure: how it works

In the status determination procedure (Statusfeststellungsverfahren), the DRV Bund decides on application by the parties whether the relationship is employment or self-employment. Other social insurance bodies are bound by that decision (§ 7a(1) and (2) SGB IV).

1. Choose the timing: the DRV Bund can decide before the work starts, based on the contracts and the intended way of working (forecast decision, § 7a(4a) SGB IV). Any changes in the first month must be reported.
2. Prepare the application together: client and freelancer describe tasks, way of working, fees and equipment. The more specific the mandate description, the more robust the decision.
3. Mind the triangle with a staffing provider: if you work through a provider at an end client and are integrated there, the DRV also decides whether you are employed by the end client. The end client may file the application too (§ 7a(2) sentences 2 and 3 SGB IV).
4. Use the one-month window: if the application is filed within one month of starting, any compulsory insurance only begins when the decision is notified. You must consent and have had comparable health and pension cover in the meantime (§ 7a(5) SGB IV).
5. Review the decision: an objection or legal action against the decision has suspensive effect (§ 7a(6) SGB IV).

Note: under the current wording of the law, the rules on forecast decisions, triangular relationships and group assessments expire at the end of 30 June 2027 (§ 7a(7) SGB IV).

Freelancing, temporary agency work or employment compared

Many interim assignments in legal departments are integrated and involve instructions. In that case Arbeitnehmerüberlassung (German temporary agency work, or staff leasing) is the right form: your status is settled by the employment contract with the agency.

The employee's perspective is covered in staff leasing from the professional's point of view.

Versorgungswerk: when the pension exemption applies

Members of a lawyers' Versorgungswerk are exempt from statutory pension insurance if they are compulsory members of the scheme and of the bar chamber because of that very activity, and the further statutory conditions are met (§ 6(1) sentence 1 no. 1 SGB VI). Three points matter for freelance and interim work:

• Tied to the activity: the exemption is limited to the specific employment or self-employed activity (§ 6(5) sentence 1 SGB VI). A new mandate or assignment needs its own review.
• Deadline: if you apply within three months, the exemption takes effect from when the conditions were met; otherwise only from receipt of the application (§ 6(4) sentence 1 SGB VI).
• Temporary agency work: lawyers placed through temporary agency work cannot be admitted as in-house counsel for that assignment, because the agency is the employer in professional law terms (Federal Court of Justice, judgment of 20 March 2023, AnwZ (Brfg) 12/21).

Before you start, check with your Versorgungswerk whether and how an exemption is possible for the specific mandate.

Tax: VAT and the small-business rule

As a freelancer you invoice in your own name. Your supplies are VAT-exempt if total turnover did not exceed EUR 25,000 in the previous year and does not exceed EUR 100,000 in the current year (§ 19(1) UStG, the German VAT Act). If you waive this rule, you are bound for at least five calendar years (§ 19(3) UStG).

Most interim mandates with a full or high workload quickly exceed these limits, so build VAT into your hourly or day rate. Agree income tax, advance payments and business expenses with your tax adviser.

Roles and workload: which mandates suit freelancing

Freelancing suits well-defined tasks with a clear output: contract projects, reviews, regulatory implementation or internal legal memos. Workload ranges from 20 to 100 % depending on the need, at junior, experienced or senior level. Formal roles such as data protection officer are generally possible in both models; for money laundering reporting officers, regulatory rules can rule out an external mandate.

Anyone providing legal services independently in specific matters of others needs authorisation (§§ 2 and 3 RDG, the German Legal Services Act); for legal advice this is usually admission to the bar.

Germany and Switzerland: what differs

• Germany: the DRV Bund decides in the status determination procedure, also before the start. Members of a Versorgungswerk face the exemption question for each activity.
• Switzerland: the AHV compensation office assesses each activity separately; VAT liability once annual turnover reaches CHF 100,000 (Art. 10 MWSTG).

The Swiss side is covered in self-employed in Switzerland: social security status and tax for freelance lawyers. For an overview of both countries with a day-rate method, see working as a freelance lawyer in Germany and Switzerland.

Limits and risks

• Disguised temporary agency work: if a freelancer is in fact managed like the client's own staff, this is often temporary agency work. Without the express label in the contract, the contract is void and an employment relationship with the client arises (§ 9(1) no. 1a and § 10(1) AÜG).
• Time-limited procedural rules: forecast decisions and triangular assessments only apply until 30 June 2027 under the current wording (§ 7a(7) SGB IV).
• No legal advice from Alpinum: this guide describes the law in general terms. Clarify your own situation with the DRV, your Versorgungswerk and your tax adviser.

Frequently asked questions on freelance work in Germany

Do I need a status determination as a freelance lawyer in Germany?

An application is only compulsory in special cases, for example for spouses or shareholder-managing directors of a GmbH, where the collecting body files it. For freelance work in legal departments it is often sensible, because the DRV Bund decides bindingly on your status and other insurance bodies must follow it (§ 7a(1) and (2) SGB IV). Ideally apply before you start.

Can I apply for status determination before the mandate starts?

Yes. The DRV Bund can decide before the work starts, based on the contracts and the intended way of working (§ 7a(4a) SGB IV). If the actual work differs in the first month, you must report it. Under the current wording of the law, this forecast decision is available until 30 June 2027, so check the rules again for later mandates.

Does my Versorgungswerk exemption carry over to a new mandate?

Not automatically. The exemption from statutory pension insurance is limited to the specific employment or self-employed activity (§ 6(5) SGB VI). For each new mandate, check whether an exemption is needed and possible, and apply within three months so that it takes effect from the start of the mandate (§ 6(4) SGB VI).

When do I have to charge German VAT as a freelancer?

Your supplies are exempt under the small-business rule as long as total turnover did not exceed EUR 25,000 in the previous year and does not exceed EUR 100,000 in the current year (§ 19(1) UStG). An interim mandate with a high workload reaches this limit quickly. Agree the details with your tax adviser before you send the first invoice.

What happens if the DRV finds that I am employed?

The mandate then counts as employment for social insurance purposes, with contribution obligations for the client as employer. If the application was filed within one month of starting, compulsory insurance can, under certain conditions, begin only with the decision (§ 7a(5) SGB IV). For integrated assignments, temporary agency work is often the clearer route.

Next step

If you are looking for freelance mandates in Germany, create your profile and state your practice areas, workload and preferred model. As the leading provider of interim legal & compliance in Germany, Alpinum Solutions staffs freelance mandates as well as temporary agency assignments.

• Freelancing with Alpinum: how the model works
• Careers: legal and compliance jobs for project lawyers
• Interim and project work for lawyers: getting started
• For candidates: all guides for legal and compliance professionals
• Freelance lawyer day rate: formula and market check

Last updated: 10 November 2026.