starting a business in frankfurt: tax hell and weird rules
so here's the deal with starting a business in frankfurt. it's like trying to assemble ikea furniture while drunk and the instructions are in german. i'm a freelance photographer, so i thought i'd share what i learned the hard way.
first, the bureaucracy. oh god, the bureaucracy. you need to register your business at the gewerbeamt (trade office), then get a tax number from the finanzamt (tax office), and don't even get me started on health insurance. it's like they designed the system to test your will to live.
here's what you actually need to do:
- register at the gewerbeamt (costs around 26 euros)
- get your steuernummer from the finanzamt
- open a business bank account
- figure out if you need to charge vat (more on that later)
rent in frankfurt is brutal. i'm paying 850 euros for a 45m² studio in bornheim. that's like 19 euros per square meter. my friend in berlin pays less for twice the space. but hey, frankfurt's job market is supposedly good, especially for finance and tech folks.
now for the tax nightmare. if you're a freelancer (freiberufler), you might avoid some commercial taxes. but if you're selling physical goods or certain services, welcome to vat hell. the standard rate is 19%, but there's a reduced 7% rate for certain things. and don't forget about the solidaritätszuschlag (solidarity surcharge) - because apparently we're still paying for reunification?
overheard at a café: "my accountant told me to keep every receipt, even for that 1.50 euro coffee. they'll find you if you don't."
another local warned me: "don't try to figure out taxes yourself. just pay an accountant. it's cheaper than making mistakes."
here's a quick cost of living comparison:
| Expense | Frankfurt | Berlin | Munich |
|---|---|---|---|
| 1-bed apt (city center) | 1,200€ | 1,000€ | 1,400€ |
| Monthly transport pass | 90€ | 81€ | 79€ |
| Coffee (regular) | 3.20€ | 2.80€ | 3.50€ |
weather-wise, frankfurt's got that whole "i can't decide what season it is" thing going on. one day it's sunny and 20°c, next day it's raining and 8°c. pack layers, always.
nearby cities worth checking out: wiesbaden (20 mins by train), mainz (25 mins), and mannheim (about an hour). all have their own weird rules if you're thinking of expanding.
pro tips from someone who's been through it:
- get an accountant who speaks english unless your german is fluent
- the frankfurt reddit (/r/frankfurt) is actually helpful for real advice
- join local business groups on facebook for networking
- check out the ihk frankfurt for official resources
and seriously, don't try to do your taxes with google translate. i learned that lesson the expensive way.
You might also be interested in:
- https://topiclo.com/post/job-market-analysis-most-indemand-careers-in-goinia-and-why-you-might-want-to-skip-it
- https://topiclo.com/post/the-tax-system-in-amh-what-the-locals-actually-pay
- https://topiclo.com/post/donetsk-gyms-yoga-spots-a-drunk-guide-from-someone-who-actually-tried-them
- https://topiclo.com/post/cartagena-the-tourist-trap-that-might-still-win-you-over
- https://topiclo.com/post/afterschool-madness-in-agege-sports-chaos-and-survival-tips