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Business Bank Accounts in Germany
Reviewed by
Erkan Boga
Erkan Boga is the founder and CEO of qmedia GmbH, the publishing house behind How-to-Germany.com. He established the platform with the clear vision of creating...
Edited by
Sadie Voss
Content Lead & Editor
Sadie Voss is the Lead Editor for How-to-Germany.com. As an expat who carved her own way into Berlin from the United States, Sadie is deeply...
- Qonto Basic – Best business bank account for freelancers and self-employed in Germany. Everything in English.
- Finom Start – Stress-free banking for freelancers and solopreneurs. Everything in English.
- N26 Business Standard – Great for freelancers and self-employed doing business under their own name. Everything in English.
€0 / monthYearly Plan (prepaid):
€108 / year (€128.52 with VAT)
Equiv. to approx. €9 / monthFlex Plan (monthly cancelable):
€11 / month (€13.09 with VAT)
Billed monthly
€107.88 / year (€128.38 with VAT)
Equiv. to approx. €8.99 / monthFlex Plan (monthly cancelable):
€10.99 / month (€13.08 with VAT)
Billed monthly
€0 / month
Billed monthly
Why do freelancers need a separate business bank account?
While it might be tempting for freelancers or small businesses to manage customer payments through their private accounts initially, maintaining a separate account for business purposes is crucial. However, the process is not as daunting as it may seem.
Separation of personal and business expenses
Operating without a business account creates challenges in keeping your financial records clear and distinguishing between private and business finances.
Mixing private and business transactions makes it harder to identify your business profit, delayed customer payments, and problematic financial trends promptly.
Opting for a separate business account enhances visibility of business payments in terms of incoming revenue and outgoing expenses, facilitating bookkeeping for yourself and your tax advisor. This knowledge empowers you to make informed financial decisions for your business. So, if you are opening a business, you should also directly apply for a business account.
Business bank account obligation — especially important for corporations
Whether a separate business account is legally or practically required depends on the company’s legal form. German law does not contain one simple rule saying that every corporation must always “maintain a business bank account” in those exact words. However, for corporations such as a GmbH, Unternehmergesellschaft (UG), or Aktiengesellschaft (AG), the company’s share capital must be paid into an account held in the company’s name before registration in the Commercial Register. In practice, this means corporations need a corporate account during formation.
Freelancers and solopreneurs can often use their private bank account for business banking in theory. In practice, however, most banks expressly exclude business transactions on private accounts. If you violate this rule, you must expect your private account to be terminated.
Nevertheless, opening a business account is strongly recommended for freelancers and self-employed persons in Germany to streamline financial management and improve the transparency of business transactions.
If you are founding a UG or GmbH, do not assume that a free freelancer account is enough. Legal entities often need a company account in the company’s name, and some “free” accounts are free only for natural persons such as freelancers or sole proprietors.
How do private and business bank accounts differ?
Foremost, you maintain a private account to handle cash payments in and out. Payments for rent, loans, mobile phone, internet, and landline are debited from your checking account. Using a debit card, you withdraw cash and make cashless payments for your purchases. The expenses are typically offset by a salary, alimony payments, or social benefits as income. You may also receive a credit card for your current bank account, and with good creditworthiness, a disposition credit can be granted to bridge short-term payment bottlenecks.
Special functions of a business bank account
However, business-related expenses such as office rent, utilities, professional services, and supplies should be managed through a separate account for business purposes.
Essentially, a company account functions similarly to a private one. It facilitates cashless transactions, payments to suppliers, and the receipt of payments from customers for services rendered.
The significant difference, particularly for medium or larger companies, is the availability of special business banking services such as direct debits from customers and other business payment solutions. Additionally, many business account providers aim specifically at business customers and offer customized advice and support for business clients. These can include start-up and financing advice or expert support for company expansion.
Some business account services are generally not offered for private accounts. These include:
- Card payments from customers
- Credit notes to customers
- Direct debits of invoices and customer contributions
- Integrated digital tools for accounting and taxes
- Salary payments to employees
Integration of accounting and tax software
In practice, the integration of accounting and tax software in a company account is becoming increasingly important in business banking. Fintech business account providers, in particular, have brought powerful solutions into the market. You can use them to optimize accounting, invoice, and tax matters or even completely digitalize them.
For expats, this can be especially helpful because German bookkeeping terms, VAT rules, and tax-office deadlines can be difficult to manage manually. When comparing accounts, check whether the provider integrates with common German accounting tools such as lexoffice, sevDesk, DATEV, or export formats that your tax advisor can use.
Business overdraft facility and corporate loans
If the bank assesses your creditworthiness positively, a business overdraft can be granted for your business bank account. Individual growth financing for your company is also possible.
Without a business bank account, you will not have these options. You should also be aware that many banks in Germany are very restrictive to grant personal loans to freelancers and self-employed persons.
Creditworthiness is a measure of your ability to repay debts, and a positive assessment can lead to better banking options and lower fees. To make their assessment, the banks obtain a Schufa report. With corporations, they may take a look at your annual finance report or tax documents. For founders, the business plan is an important document for obtaining financing.
Tax advantages of a business bank account
There are also tax advantages associated with a company account. The costs for account management, as well as interests on an overdraft facility and other loans, are fully tax-deductible as business expenses.
However, the prerequisite for uncomplicated recognition of account costs and other business expenses by the tax office is the strict separation of private and business finances, which you can only achieve with a business bank account. In the case of mixed business and private account use, all deductible items must be proven with individual receipts — in the case of a business account, the account statement is often sufficient as proof to the tax office.
How to compare different business accounts?
A few years back, as a freelancer or solopreneur in Germany, your choices for a business account were limited. Nowadays, most business account providers have recognized freelancers as valuable and stable business customers. Consequently, they offer a wide range of account options.
Branch banks, direct banks and fintechs
High-performance business account offers you find at established banks such as Commerzbank and Postbank, as well as at direct banks and fintechs. Neobanks and fintechs such as Qonto, N26 or Finom typically equip their business accounts with innovative features.
Before selecting an account: Comparison of account conditions
Given the significant differences in costs and services among business account providers, it’s essential to review carefully the conditions before opening a business account. Consider which services are vital for you and your company.
Conduct a thorough comparison of the offerings to find a business bank account that perfectly aligns with your requirements at reasonable costs. Once your account is set up and your business partners are informed, changing it later is time-consuming and takes away valuable time that could be better spent on your clients.
When comparing business bank accounts, pay close attention to the costs associated with transactions. Some banks limit the number of paperless bookings per month, and exceeding this limit may result in high additional transaction fees. If a credit card is necessary, check how many cards the bank issues. While many business account providers limit the number of credit cards, this might not be sufficient if you have employees requiring additional cards.
Please note: Most banks do not issue credit cards with overdraft facilities for their business bank accounts, but provide a debit payment card (VISA or Mastercard). With these cards, payments are debited directly from the account. Depending on the business account provider, you can also apply for a real credit card.
If you are new to Germany, filter business accounts by: English app/support, accepted legal form, non-EU passport compatibility, VideoIdent or PostIdent options, accounting integrations, and whether the provider accepts your residence permit or registration status.
The following table gives you an overview of the conditions for selected business accounts:
| Business Account | Annual Fee | Booking Fees | Cards & User Accounts Included | English Support | Special Features |
|---|---|---|---|---|---|
| FYRST Base | €0.00 for freelancers and solopreneurs; for legal entities such as UG or GmbH, free for the first 6 months, then €6.00/month | 50 free, then €0.19 per booking | 1 Girocard, 1 Debit Mastercard, 1 user account | German-focused | Deutsche Bank Group infrastructure; useful for businesses needing more traditional banking access |
| Holvi Lite | From €4.50/month + VAT when paid annually, approx. €64.26/year incl. VAT | 100 free SEPA transactions per month, then €0.25 per booking | 1 Debit Mastercard, 1 user account | English-friendly | Integrated invoicing and accounting functions |
| Holvi Pro | From €9.00/month + VAT when paid annually, approx. €128.52/year incl. VAT | Unlimited free SEPA transactions | 3 Debit Mastercards, 3 user accounts | English-friendly | Integrated invoicing and accounting functions for higher transaction volume |
| N26 Business Standard | €0.00/month | Unlimited free bookings | Free virtual card; physical Debit Mastercard available with a one-off €10 shipping fee | English-friendly | 0.1% cashback on Mastercard payments; best for freelancers using their own name |
Some accounts are designed for freelancers and sole proprietors, while others also support UG, GmbH, or other legal entities. A plan that is free for freelancers may not be free for a UG or GmbH.
Optimizing financial management with subaccounts
Consider the number of subaccounts, especially if your business is expanding rapidly. Some business account providers offer a single account for all transactions, while others allow you to set up multiple subaccounts without extra charges. This feature can help you stay organized and keep track of your business’s financial activities.
Free subaccounts are mainly offered by neobanks and fintechs. Branch banks almost always charge a fee to set them up.
Digital business accounts from neobanks and fintechs
Explore the offerings of fintechs, often small start-ups specializing in online banking products. Neobanks such as Qonto and N26 also have their roots in the fintech scene.
Business account offers from fintechs and neobanks can be an ideal solution for freelancers and solopreneurs with predominantly digital business models. They excel in fast and straightforward cashless transactions.
Such an account you manage only via online banking or mobile apps. Many of these providers offer comprehensive additional digital services for their business accounts and see themselves as integrated digital business platforms.
Although the price for fintech products can be appealing, be aware that some providers may adjust the costs based on transaction volume, potentially making account management expensive as the number of transfers increases.
However, with a cash-intensive business model, you should consider wisely if you really want to open a business bank account with a fintech or neobank. These business account providers usually operate exclusively digitally and do not operate a branch network. Cash deposits are usually only possible at third-party banks at high transaction fees. Free cash withdrawals are either not offered or are limited to a few monthly withdrawals.
One exception is the fintech FYRST, which belongs to the Deutsche Bank Group and uses their infrastructure for cash transactions and paper-based bookings.
What are the costs of a business bank account for freelancers?
In general, the bank is entitled to charge a fee – the account maintenance fee – for managing your business bank account. Typically, this covers executing all kinds of incoming and outgoing bookings.
However, all banks will charge additional fees for paper-based bookings and cash deposits. These services are offered almost exclusively by established banks with branch business. Certain providers, like Deutsche Bank, offer up to five free deposits.
Additional fees may apply for debit cards and ATM cash withdrawals. Nevertheless, some business account providers offer a free debit card with the business bank account, so a careful comparison is essential. There are always fees for real credit cards.
Moreover, don’t underestimate the interest rates if you have a credit line granted.
All in all: The range of business accounts for freelancers, solopreneurs, and companies is highly diverse, with significant pricing differences from one bank to another. Before selecting a business account provider, closely examine the fee structure. Some banks for freelancers offer various account models depending on the number of transactions or subaccounts and credit cards.
How does a free business bank account work?
Some neobanks and fintechs refrain from charging monthly fees in exchange for offering only the most important services, such as making cashless deposits and withdrawals to your account. For freelancers and solopreneurs at the beginning of their development, such business accounts can still be an interesting option.
With a free bank account, you should carefully check which services are offered and for what a fee may be charged.
Additional services such as the integration of accounting and tax software are often not available or only available to a limited extent for free accounts.
Generally, free business accounts are only offered by a few neobanks and fintechs. Branch bank accounts are always subject to a fee.
An account can have no monthly base fee but still charge for card delivery, extra users, legal entities, cash deposits, paper-based bookings, or additional transfers. Always compare your expected monthly usage instead of looking only at the headline monthly price.
Can you open a business bank account despite a Schufa entry?
When opening a business account, the Schufa score of the applicant is usually queried. The bank uses this to check whether any irregularities in payment behavior have been detected in the past.
Additionally, the opening of the new account is entered in the Schufa and stays listed there as long as the business relationship exists. With this measure, the bank protects itself, especially if a credit is to be established for the business account.
However, you can open a business account without Schufa with some neobanks and fintechs. At least initially, no account credit is granted for such an account. With some Schufa-free business account providers, it is possible to set up a credit line at a later date.
Checklist for opening a business account for freelancers and solopreneurs
Here is a summary of the most significant things you should consider before opening a business account for freelancers and solopreneurs in Germany:
- Account maintenance fees: Explore different account models to find one that suits your business and identify the services you truly need. Check if there are hidden fees.
- Accounting integrations: Check whether the provider works with lexoffice, sevDesk, DATEV, or your tax advisor’s preferred export format.
- Account opening requirements: Expats should check whether their passport, residence permit, address, and tax ID are accepted.
- ATM availability: If you plan to make many cash withdrawals, having a suitable ATM nearby is essential. Pay attention to whether and how much cash withdrawal fees are charged.
- Availability and costs for paper-based bookings and cash deposits: Many fintechs and neobanks do not offer this service. With third-party banks, you have to expect very high additional costs.
- Consulting options: Especially crucial for freelancers and solopreneurs, as questions often arise in the beginning that a bank advisor may better address than an online FAQ.
- Costs for paperless transactions: Check which costs apply and whether the business account provider provides free quotas for paperless transfers and direct debits that correspond to your monthly transaction volume.
- Credit options: A noteworthy criterion for freelancers and self-employed people, as this group often doesn’t have a high start-up capital. An overdraft facility can be beneficial, especially in the beginning.
- English support: Check whether the app, customer support, card settings, tax documents, and account statements are available in English.
- Legal form compatibility: Confirm whether the account supports freelancers, sole proprietors, UG, GmbH, or other legal forms.
- New customer bonus: Many business account providers offer special bonuses that can lead to savings in the first year or longer.
Online account opening usually relies on VideoIdent or PostIdent. Some non-EU passports, temporary residence documents, name-format differences, or missing German addresses can cause verification problems. If VideoIdent fails, check whether the provider offers PostIdent, manual review, or support for your passport before starting another application.
Best banks for freelancers in Germany
Qonto
€0 / monthYearly Plan (prepaid):
€108 / year (€128.52 with VAT)
Equiv. to approx. €9 / monthFlex Plan (monthly cancelable):
€11 / month (€13.09 with VAT)
Billed monthly
Finom
€107.88 / year (€128.38 with VAT)
Equiv. to approx. €8.99 / monthFlex Plan (monthly cancelable):
€10.99 / month (€13.08 with VAT)
Billed monthly
How to open a business bank account in Germany for freelancers and solopreneurs?
The documents needed to open a business account depend on the form of your business. If you open the account with a direct bank or a fintech, the account opening is carried out completely online. You fill out the application form in their online banking and upload the required documents. Alternatively, you can sometimes send them via email or post.
If you opt for a branch bank, you can visit the local branch and open a business account with the assistance of your bank advisor. The requested documents typically include your identity card as proof of identity and the Schufa report. If your company requires a partnership agreement, such as for corporations, the bank will also request it.
If you run your business with a partner, it needs to be clarified whether each business owner can independently dispose of the account or if joint authorization is required.
After applying, the bank will set up your account. If you open a business account online, the identity check must still be carried out through PostIdent or VideoIdent procedures. Account opening with a direct bank and fintechs usually includes legitimation per VideoIdent. Directly afterward, your new business account has all its functions and can be used immediately.
- Choose your legal form: Freelancer, sole proprietor, UG, GmbH, or another company type.
- Check eligibility: Confirm that the provider accepts your legal form, ID document, residence status, and tax residency.
- Compare real monthly costs: Include base fees, transaction fees, card fees, cash fees, and additional users.
- Prepare documents: Passport or ID, German address, tax ID, business registration or tax number if available, and company documents for legal entities.
- Complete verification: Use VideoIdent, PostIdent, or branch verification depending on the provider.
- Connect bookkeeping: Link the account to your accounting software or tax advisor workflow.
When opening a business bank account, consider your specific requirements. Young founders often have different needs than established businesses. Therefore, first, check which services are significant for you. Then, carefully compare the offers from different banks for freelancers before deciding on your preferred option.
Conclusion – a business bank account makes your everyday work easier
While not mandatory for all solopreneurs or freelancers in Germany, a separate business account can significantly improve financial management, record-keeping, and your professional image.
Similar to a private checking account, a business bank account facilitates regular payment transactions, deposits, cash withdrawals, transfers, and account card service. Yet, it comes with additional benefits not offered by a personal bank account.
Many providers specialize in business current accounts, providing expert advice on various business aspects, especially beneficial for startups. Account management fees often cover at least one business credit card or debit card. Some providers offer extra features like accounting integration, tax services, subaccounts, cashback, discounts, or insurance packages. These benefits can greatly simplify your day-to-day operations.
Importantly, a business bank account doesn’t have to be costly – some providers offer a free business account with essential features. However, freelancers, legal entities, and expats should check the real total cost, legal-form eligibility, English support, accounting integrations, and identity-verification process before applying.
Frequently Asked Questions — FAQ
Many digital banks offer the convenience of opening a business bank account via online banking in only a few minutes. This quick process is particularly beneficial for entrepreneurs managing their business banking and personal financial transactions alongside their own business.
Certain business account providers — especially neobanks and fintechs — specialize in catering to freelancers and self-employed, offering tailored features like free financial transactions and efficient accounting tools. If opening a business account, explore the options provided by these banks to support your freelance endeavors.
Many banks facilitate international financial transactions, even for small businesses. With features like Google Pay and Apple Pay, managing transactions globally becomes more accessible for your business.
If you make frequent international payments, consider to open a business account that supports them at favorable conditions.
Digital banks often offer attractive features such as a free plan and efficient accounting integration. Some neobanks and fintechs offer free accounts or a business account without Schufa.
In contrast, established banks score with individual advice and support, as well as start-up and financing advice. These banks also arrange public funding for companies. We also recommend a company bank account with a branch bank account for cash-intensive business models.
Many business accounts offer tax services as part of their features. Look for crucial aspects like a DATEV interface for simplified accounting integration and easy access to account statements, making tax-related processes smoother.
