Short answer: If you register a trade (Gewerbe) while studying, you register it with the local municipality (§ 14 GewO). The tax office then checks your tax registration. If you are self-employed on a main-job basis, you are no longer covered by the student health insurance (§ 5 para. 5 SGB V). Whether you count as main-job self-employed depends on the individual case. Last updated: October 2026.
Registering a trade as a student is simpler than it sounds. The harder part is the effect on health insurance and taxes, which many students underestimate. This guide shows which steps are needed and where you should take a closer look.
The most important points
- The trade registration is made with the local municipality (Gewerbeamt). The fee is set by the municipality and varies by place.
- The tax office learns about the registration and usually asks you to complete the tax registration questionnaire.
- Part-time self-employment usually keeps your student health insurance. Main-job self-employment ends it (§ 5 para. 5 SGB V).
- Depending on your trade, membership in a chamber of commerce (IHK) or craft chamber (HWK) may follow.
- Trade tax applies only above an allowance, which for sole traders is 24,500 euros (§ 11 GewStG).
Trade or freelance profession: what is the difference?
Not every self-employed activity is a trade. People who work as freelancers in a profession listed in the income tax law, for example as authors, software developers or journalists, carry out a freelance activity (§ 18 EStG). Freelancers usually do not need to register with the Gewerbeamt. This difference affects taxes and obligations. The article Freelancing as a Student: Small Business Rules, Invoices and Tax explains it in more detail.
How do you register a trade?
Registration runs through the municipality where you have your residence or your business premises. Prepare the details so you can answer follow-up questions quickly.
- Register the trade with the municipality. Notification is mandatory (§ 14 GewO). Describe your activity as precisely as possible.
- Check the fee, which differs by municipality. Ask the municipality in advance.
- Wait for the tax office. Usually it sends the questionnaire on tax registration, which you often complete via ELSTER.
- Inform your health insurer as soon as it is clear whether you are self-employed on a main-job basis.
The process for ELSTER is explained step by step in ELSTER for Students: Registration and Tax Return.
What happens to your health insurance?
The student health insurance applies only as long as you are not self-employed on a main-job basis. This is set out in § 5 para. 5 SGB V. A presumption also applies: if you regularly employ more than marginally employed people, you are considered main-job self-employed. Whether your trade remains a side activity is decided by the health insurer on the individual case.
Tell your health insurer as soon as your activity changes. The insurer can ask for evidence, for example on the scope of your work and your income. Keep invoices and an overview of your assignments ready, which makes the review easier.
| Situation | What applies to health insurance |
|---|---|
| Part-time self-employment, studies remain the focus | The student insurance can continue if the other conditions are met |
| Main-job self-employment | No student insurance. You must insure yourself voluntarily in the statutory or private system |
| Regularly more than marginally employed people | Main-job self-employment is presumed |
Voluntary members of the statutory health insurance who are self-employed pay at least a contribution based on the minimum contribution assessment base. Using the reduced contribution rate of 14.0 percent for 2026 and an assumed additional contribution of 2.9 percent, the health insurance part comes to 222.80 euros per month. Long-term care insurance at 3.6 percent adds 47.46 euros. The total is about 270 euros per month, or 278.17 euros with the childless surcharge. Your insurer’s actual additional contribution may differ. Source: GKV-Spitzenverband, fact sheet on 2026 calculation values (last updated January 2026).
Which taxes apply?
With a trade, you pay income tax on your profit. Trade tax can be added. It applies only if the trade income exceeds the allowance of 24,500 euros for sole traders (§ 11 GewStG, last updated October 2026).
Assumption: your trade income is 20,000 euros. Because of the allowance, no trade tax is due. VAT is considered separately. Whether you have to charge it depends on the small business exemption under § 19 UStG, with thresholds of 25,000 euros in the previous year and 100,000 euros in the current year (October 2026).
Which documents should you collect?
Before you register and speak with the tax office, it helps to organise some documents. This saves time and prevents follow-up questions.
- Your tax identification number and, if you already have one, your tax number.
- A short and precise description of your activity, including for whom you work and which services you offer.
- Details of your earnings so far, if you have already had assignments.
- The confirmation from your health insurer about your student insurance, so you can document the change cleanly.
Which costs should you plan for?
Apart from the municipality fee, other costs can arise. These include contributions to a chamber, which differ by chamber and trade, costs for tax advice and insurance for your activity. Clarify these points before you register so you are not surprised.
Frequently asked questions
Do I need a permit for a trade?
For most activities, registration is enough. Some sectors need an additional official permit. The trade office checks this during registration and tells you if something is missing.
Do I have to deregister the trade after my studies?
You decide for yourself whether to continue. If you end the activity, you deregister the trade with the municipality (§ 14 GewO). After your studies your health insurance also changes, see Self-Employed After Studies: Health Insurance and Pension.
Do I have to pay VAT?
Only if you cannot or do not want to use the small business exemption. The thresholds and invoice details are explained in Freelancing as a Student: Small Business Rules, Invoices and Tax.
What happens if I do not report a change?
If it later turns out that your insurance status was different from what was assumed, the health insurer can demand back contributions. Report changes early and document when your activity changed.
Who is responsible for chamber membership?
The competent chamber decides on membership. Trading businesses are often members of the IHK, craft businesses of the craft chamber. The contribution depends on the chamber and your business. Ask before you register whether membership will apply to your trade.
What should you do now?
- Clarify whether your activity is a trade or a freelance profession before you register.
- Register the trade with the municipality and ask about the fee.
- Complete the tax registration questionnaire and inform your health insurer.
- Check your health insurance and set the turnover limits for VAT.
Related articles
- Freelancing as a Student: Small Business Rules, Invoices and Tax
- Selbstständig im Studium: Gewerbe, Steuern und Krankenversicherung (in German)
- Health insurance for students: glossary from A to Z
- Private Health Insurance for Working Students in Germany
- Taxes for students: when you pay tax and when you do not (in German)
Sources: § 14 GewO (accessed October 2026), § 5 SGB V (accessed October 2026), § 11 GewStG (October 2026), GKV-Spitzenverband, fact sheet on 2026 calculation values (January 2026).
Last updated: October 2026. This guide is general information, not individual advice.
