The 10 Most Important Tax Tips for Freelancers

As a freelancer, you're not only responsible for your work, but also for your taxes. This can seem overwhelming - but with the right knowledge, you save a lot of money legally. Here are the 10 most important tax tips every freelancer should know.

Tip 1: Keep a Proper Mileage Log

If you use your car both privately and for business, you have two options:

The 1% Rule

• Simple, but often expensive
• 1% of gross list price per month as taxable benefit
• Additionally 0.03% per kilometer for trips to place of business

The Mileage Log

• More effort, but often cheaper
• Document every trip: date, destination, purpose, kilometers driven
• Determines actual business share

When is a mileage log worthwhile?

• With low private share (under 50%)
• With cheaper used cars
• With few private trips

Tip: Use a mileage log app for complete documentation.

Tip 2: Use the Small Business Rule Correctly

New limits since 2025:

• Up to 25,000 € previous year revenue: Small business possible
• Up to 100,000 € current year revenue: Rule remains in effect

Advantages

• No VAT on invoices
• Less bureaucracy (no VAT pre-registrations)
• Simpler bookkeeping

Disadvantages

• No input tax deduction on purchases
• Can be disadvantageous with high investments
• Some B2B customers prefer VAT invoices

Decision aid: Plan your investments. With high purchases (laptop, camera, software), regular taxation can be cheaper.

Tip 3: Deduct Home Office Correctly

Your home office can be tax-deductible - if conditions are met.

Home Office (separate room)

Requirements:

• Separate, lockable room
• Almost exclusively professional use (min. 90%)
• No other workplace available

Deductible:

• Proportional rent or building depreciation
• Proportional utilities (heating, electricity, water)
• Furniture and equipment

Calculation: Office = 15 sqm of 100 sqm apartment = 15% of costs deductible

Home Office Flat Rate

• 6 € per day, max. 1,260 € per year (210 days)
• No separate room needed
• Simpler documentation

Tip 4: Plan Investments with Optimal Timing

The timing of your investments can have significant tax effects.

Use Year-End

• Low-value assets (GWG) up to 800 € net buy in December
• Immediate deduction in current year
• Reduces profit and thus tax burden

Investment Deduction Amount (IAB)

• Deduct up to 50% of planned acquisition costs in advance
• Max. 200,000 € per year
• Acquisition must occur within 3 years

Example: You plan a 10,000 € laptop for next year. You can claim 5,000 € as IAB this year.

Optimize Depreciation

• Purchase in January: full year depreciation
• Purchase in December: only 1/12 of year depreciation

Tip 5: Fully Deduct Training Costs

Investments in your knowledge are fully deductible:

What counts?

• Course fees and seminar costs
• Professional literature and online courses
• Conferences and workshops
• Certifications and exam fees
• Coaching and mentoring

Don't Forget Ancillary Costs

• Travel costs to training
• Accommodation and meal allowances
• Work materials for training

Important: Document professional connection. "Personal development" without clear professional relevance is often not recognized.

Tip 6: Meal Allowances for Business Travel

For business trips, you're entitled to a meal flat rate:

Flat Rates 2025 (Domestic)

• Absence 8-24 hours: 14 €
• Absence over 24 hours: 28 €
• Day of arrival and departure: 14 € each

Note Deductions

• Breakfast (incl. in hotel): minus 5.60 €
• Lunch or dinner: minus 11.20 € each

Example three-day trip:

• Day 1 (arrival): 14 €
• Day 2 (full day): 28 €
• Day 3 (departure): 14 €
• Total: 56 € (minus any meals)

Foreign

For each country, separate flat rates apply. Current rates can be found in the BMF foreign flat rate table.

Tip 7: Optimize Health and Pension Insurance

Health Insurance

• Contributions fully deductible (as special expenses)
• Basic coverage: unlimited
• Optional services: limited

Pension Insurance

The right strategy saves taxes:

Rürup Pension

• 2025: 100% of contributions deductible (max. ~27,000 €)
• Ideal for freelancers with high income
• Deferred taxation in retirement

Private Pension Insurance

• No deductibility of contributions
• But tax-free capital option possible

Company Pension

• Also possible for self-employed (e.g., support fund)
• More complex, but tax-optimized

Tip 8: Correctly Deduct Entertainment Expenses

Business meals are deductible - at 70%:

Requirements

• Business occasion must be documented
• Note participants and companies
• Tip maximum 10-15% customary

What must be on the receipt?

• Name and address of restaurant
• Date
• Detailed listing (not just "food and drinks")
• Add by hand: occasion, participants, company affiliation

Caution with own receipts: From 250 € the receipt absolutely needs the guest's name.

Tip 9: Use Donations and Memberships

Donations

• To charitable organizations: deductible as special expenses
• Max. 20% of total income
• In-kind donations: market value

Professional Associations and Chambers

• Mandatory memberships: fully deductible
• Voluntary memberships: if professionally relevant

Unions and Professional Associations

• Fully as advertising costs/business expenses

Tip 10: Build Reserves - Also for Taxes

Don't Forget Taxes

Many freelancers underestimate their tax burden:

Rough rule of thumb: Set aside 30-40% of your profit for taxes:

• Income tax (14-45%)
• Solidarity surcharge (5.5% of income tax)
• If applicable, church tax (8-9% of income tax)
• VAT (if not small business)
• If applicable, trade tax

Plan Advance Payments

• Tax office sets advance payments based on previous year
• With strongly fluctuating income: apply for adjustment
• Plan quarterly payments (March, June, September, December)

Reserve for Back Payments

• Plan buffer for tax back payments
• First tax return after founding often with surprises
• Installment payment at tax office possible, but with interest

Bonus: Tax Advisor - Is It Worth It?

Advantages of a Tax Advisor

• Deadline extension for tax return
• Expertise with complex matters
• Time savings
• Legal certainty

When is it worthwhile?

• From about 50,000 € annual revenue often sensible
• With international clients
• With complex structure (GmbH, holding)
• When time is more important to you than money

Costs

• Fee schedule regulates minimum and maximum fees
• Typical: 1,000-3,000 € per year for simple cases
• Fully deductible as business expense

Clever Invoice and Taxes

With Clever Invoice, you keep track:

• Automatic revenue evaluation: See immediately if you're reaching small business limit
• Categorized expenses: Easy allocation for tax return
• Tax advisor export: All data in right format for your tax advisor
• Quarterly overview: Plan your advance payments better

Conclusion: Optimize Taxes, Don't Evade Them

Saving taxes is legal and smart. Tax evasion is criminal and stupid. The difference lies in documentation and knowledge.

The most important insights:

1. Document everything: Receipts, trips, entertainment
2. Plan ahead: Investments, advance payments, reserves
3. Use all possibilities: Home office, training, pension
4. Get help: A good tax advisor can quickly pay for themselves
5. Stay informed: Tax law changes regularly

With these tips, you keep more of your money - completely legally.

Bookkeeping made easy: With Clever Invoice, you have all income and expenses in view. Perfect for your tax return. Try it free now!