Business bank account for the self-employed in Germany: requirement, benefits and correct use

Is a business bank account mandatory for the self-employed?

For sole traders – freelancers (Freiberufler) and trade businesses alike – there is no legal requirement to handle business and private matters via separate accounts. The tax office (Finanzamt) only requires every business receipt and expense to be recorded traceably. In theory this also works via your private current account.

Corporations are different: a GmbH or UG is a separate legal entity with its own assets. The share capital is paid into an account of the company before registration in the commercial register, and company money must not flow into the managing director’s private account. For a GbR or partnership with several partners, a joint account is also practically indispensable. Which legal form suits you is explained in the guide choosing a legal form.

Why a separate account pays off anyway

The separation costs little and saves time in your bookkeeping every month:

• Clear bank reconciliation: every transaction on the account is business-related or a deliberate private withdrawal or contribution.
• Privacy: during a tax audit (Betriebsprüfung) the auditor may look at a mixed-use account in full – including your doctor’s bills and holiday bookings.
• Overview: you can see immediately how much your business earns and what has to be set aside for taxes.
• Professional image: clients transfer to an account whose name matches the invoice issuer; with the payee verification (matching name and IBAN) required since October 2025 there are fewer warnings.
• Bank terms: many banks do not allow regular business use on personal accounts and may otherwise close the account.

Business account or a second personal account?

Many self-employed people simply open a second current account and use it only for the business. For tax purposes this is sufficient, because what counts for the tax office is the separation, not the account type. The bank’s terms are decisive:

Booking private withdrawals and contributions correctly

As a sole trader you do not pay yourself a salary. If you transfer money from the business account to your private account, that is a private withdrawal (Privatentnahme, SKR03 account 1800). It does not reduce your profit, because the profit is taxed, not what you withdraw. Conversely, money you pay into the business privately – for example as start-up capital at the beginning, or when you pay a business expense with your private card – is a private contribution (Privateinlage, 1890).

These payments from the business account are also private withdrawals: income tax prepayments, church tax, private health and long-term care insurance, pension contributions (unless business-related), private purchases. In the Anlage EÜR you only have to state withdrawals and contributions if you pay business interest on debt of more than €2,050 a year (§ 4 Abs. 4a EStG). You should still book them so that the account reconciliation works. A GmbH or UG has no private withdrawals; there money only flows as salary, profit distribution or loan.

Example: one month on the business account

Sara is a freelance translator and charges VAT. She sets aside money for taxes every month (building tax reserves) and transfers herself a fixed “salary” as a private withdrawal:

The result: of €4,165 received, only €3,441 is profit (€3,500 revenue minus €50 software and €9 fees). The €2,800 for the income tax prepayment and private transfer do not reduce profit, even though they empty the account. If you confuse this, you underestimate your profit – and face an additional payment with your tax return. With what is left on the account, Sara covers the next VAT prepayment and her reserve.

What to look for when choosing

Do not compare business accounts on the basic fee alone. For the self-employed these points matter more:

• Pricing model: basic fee, cost per transaction, cards, cash deposits – calculate with your real number of transactions.
• Export of bank statements as CAMT.053 (the standard of German banks), CSV or PDF; MT940 is being discontinued by the banks.
• Sub-accounts or additional IBANs to park reserves for VAT and income tax separately.
• Cash: if you have cash income, where and at what cost can you deposit it?
• Deposit protection: by law €100,000 per customer and bank is protected.
• Several users and permissions, if employees or your tax advisor need access.
• Bank statements available digitally and permanently – you must keep them for eight years (GoBD and retention periods).

Opening a business account: what you need

Under the Money Laundering Act (Geldwäschegesetz) banks must check who the account holder and the beneficial owner are. For the self-employed without a German passport, opening an account is often the first stumbling block; so allow one to two weeks and have these documents ready:

• Valid passport or identity card, for non-EU citizens also the residence permit that allows self-employment.
• Registration certificate (Meldebescheinigung) or proof of your residential address in Germany.
• Tax number or confirmation from the tax office; trade businesses also the trade registration (see applying for a tax number).
• For a GmbH/UG: articles of association, list of shareholders, commercial register extract (or notarial deed before registration) and transparency register details.
• Depending on the bank: details of your activity, expected revenue and a credit check.
• Note: only consumers, not businesses, have a legal right to a basic account (Basiskonto). If a bank refuses a business account, your only option is to try another bank – or for the time being a separate personal account whose terms allow self-employed use.

Deducting the costs of the business account

Account fees, card fees and costs for payment service providers of an account used purely for business are business expenses (SKR03 4970 “Nebenkosten des Geldverkehrs”, costs of money transactions). Bank fees are generally VAT-exempt, so there is no input VAT. If you use an account for mixed purposes, you can only deduct the business share – another reason for separation. Interest on a credit balance in the business account is business income, interest on a business overdraft is a business expense (see business expenses).

Importing bank statements into your bookkeeping

Instead of recording every payment by hand, you download the bank statement as a file in online banking and import it into your bookkeeping software. Then every transaction is matched to an invoice, an expense or a private withdrawal. Incoming payments close open invoices, and if payments are missing you know immediately whom to send a reminder.

The CAMT.053 format contains the most information, for example the creditor ID and mandate reference for direct debits. CSV files are structured differently depending on the bank and need a suitable import profile. Important: even after the import, reconciliation remains your job; a bank transaction is not a receipt and does not replace the supplier’s invoice.

Business account and Kontelio

Kontelio is not a bank and does not hold accounts. You set up your business account in Kontelio (from the Business plan) under Bank and cash and import bank statements as CAMT, MT940 or CSV. Kontelio suggests the matching invoice or expense for each transaction; you classify fees, transfers between accounts, private withdrawals and private contributions with one click. On the Pro plan, matching rules automatically recognise recurring transactions such as rent or subscriptions. How to record expenses with receipts is shown on the page recording expenses; the whole routine is described in the guide bookkeeping for the self-employed.

Frequently asked questions