When you become self-employed in Germany, you face the question of which account to use. Many banks do not allow a personal current account to be used for business payments, and doing so can lead to the account being closed.

Why banks restrict business transactions on personal accounts

The terms and conditions (AGB) of many personal accounts state that they are intended for private purposes. Regular incoming payments from clients can trigger a review and the closure of the account. The law does not require sole traders to open a separate account, but keeping finances separate is practically useful.

Keeping personal and business finances apart

Separate accounts are basic good practice. A clear separation makes it much easier to prepare your income statement (Einnahmen-Überschuss-Rechnung, EÜR) for the tax office, avoids queries and saves your tax adviser time.

Business accounts for freelancers compared

Kontist automatically calculates and sets aside amounts for income tax and VAT in sub-accounts. Finom and Qonto let you issue invoices directly from the app, capture receipts with your phone camera and connect to DATEV.

What to look for when choosing

Look at the number of free transactions per month, the cost of issuing invoices, physical debit cards and integration with accounting software such as Lexware Office or sevdesk.

What to check

  • Open a separate business account (Geschäftskonto) before issuing your first invoice.
  • Give the business IBAN in the tax registration questionnaire (Fragebogen zur steuerlichen Erfassung).
  • Set up automatic transfer of transactions to your accounting software.
  • Set up a regular fixed transfer as a “salary” from your business account to your personal account.

Example situation

A freelance translator opens a business account with Kontist, sets aside 25% of every fee for taxes automatically and avoids cash-flow problems at the annual tax settlement.

Next step

Keep personal and business money apart; a business account for freelancers can be opened online in minutes these days.

Official information on this topic

Checklists and examples are organisational recommendations. Requirements depend on the procedure, the city and your situation; check them with the relevant office before you act. Please discuss legal and tax questions with an authorised professional.

This article was prepared with the help of AI. The example illustrates the approach and does not describe a client case.