Last Update: 06 October 2024
1. What is the Best and How to Open a Business Bank Account in Germany?
Are you planning to start working as a freelancer? Do you want to launch a new corporate enterprise? Or do you already have a business account and want to find a better bank?
Finding the best German business bank account for your needs can make all the difference. You usually require a dedicated bank account for your business as it is either required by law or – most often – German banks do not allow using private accounts for business transactions, even for freelancers. Luckily, opening a German business account is easy.
In our guide, we help you navigate the options by comparing the available German business accounts, highlighting monthly or additional account maintenance fees, and explaining the different criteria to choose the best account for your needs.
2. Comparison of German Business Accounts for Freelancers and Companies (“Geschäftskonto”)
The following banks in Germany offer business accounts (“Geschäftskonto”) that you can either use as an individual freelancer (“Freiberufler”) or a self-employed person (“Gewerbetreibender”). Moreover, it is also possible to open some of the accounts as a listed company (e.g., GmbH, OHG, AG, SE).
Free German business accounts come without monthly base fees but usually include limits (i.e., for monthly free transactions, banking cards, or cash deposits). On the other hand, premium accounts include more perks and generous limits. It, therefore, depends on your individual requirements and the nature of your business to decide which bank account is best for you.
Finom
Commercial partner
As of €0 / month
FYRST
by Deutsche Bank
Commercial partner
As of €0 / month
Kontist
Commercial partner
As of €0 / month
N26
Business
Commercial partner
As of €0 / month
3. Criteria, Features, and Free Business Accounts in Germany
Criteria for Choosing a Business Bank Account
Typical factors to consider when choosing a business bank account include account management fees, the availability of online banking services, the accessibility of customer support, and specific features it offers to business customers. Freelancer and business accounts (“Geschäftskonto”) are usually more expensive than private current accounts (“Girokonto”). However, there are still great options combining low costs with high functionality.
Top Features to Look for in a Business Bank
The top features to look for in a business bank account include low transaction fees, a user-friendly digital banking platform, and robust customer service. Freelancers should also consider whether the bank integrates with accounting software and other business tools. A good business bank account will provide all the features necessary to manage business finances efficiently.
Comparing Free Business Bank Accounts
Maintaining business accounts in Germany is usually more expensive than private accounts. Nevertheless, many banks in Germany offer free business bank accounts. We recommend comparing their features regarding transaction limits, hidden costs, and the quality of digital banking services. A free account without monthly fees is sometimes the most cost-effective since hidden fees for regular use could pop up.
4. How to Open a German Business Bank Account?
Step-by-Step Guide to Opening a Business Account
Opening a business bank account in Germany involves the following steps: First, choose the right bank and account type for your business. Then, gather the required documents, such as your identification, proof of address, and business registration. Finally, submit your application online or at a bank branch.
Required Documents for Freelancers
As a freelancer, you shall provide specific documents when opening a business bank account. These usually include a valid ID, proof of residence, business registration documents, or the tax identification number.
Choosing Between Online Banks and Traditional Banks
Freelancers can choose between online and traditional banks when opening a business account. Online banks often offer lower fees and more convenient digital services. In contrast, conventional banks provide in-person support and a more comprehensive range of financial products. The most advantageous choice depends on your individual needs and preferences as a freelancer.
5. Best Banks for Freelancers in Germany
Overview of Popular Banks for Freelancers
Several banks in Germany are popular among freelancers, including both traditional banks and online banks. Direct banks like N26 and digital banks like Penta offer excellent online banking services, while conventional banks like Deutsche Bank provide comprehensive financial products and in-person support. Matching each bank’s strengths and particularities with your needs supports you in making a good decision.
Benefits of Using Direct Banks vs. Branch Banks
Direct banks, such as online banks, offer numerous benefits for freelancers, including lower fees and advanced digital banking tools. On the other hand, branch banks provide the advantage of face-to-face customer service and a broader range of services. Freelancers and businesses must weigh these benefits to decide which type of bank best suits their business needs.
Customer Reviews of Banks for Freelancers
Customer reviews or neutral evaluations provide insights into the quality of service offered by banks for freelancers. They can help you understand the pros and cons of different business bank accounts, including customer support, ease of use, and hidden costs. Choose a bank with positive reviews to ensure a smooth banking experience. Check our table of contents for reviews of Germany’s business bank accounts.
Banking Services for Freelancers and Self-Employed Individuals
Freelancers and self-employed individuals should consider the range of banking services offered by a bank. This includes basic services like checking accounts, as well as specialized services like business loans, credit cards, and investment options. The best bank will offer comprehensive services tailored to the needs of freelancers and self-employed people.
Account Flexibility and Accessibility
Account flexibility and accessibility are crucial factors when choosing a business bank account. Freelancers need an account that allows easy access to funds, flexible transaction options, and a user-friendly online banking platform. The best business bank account will offer the flexibility and accessibility needed to manage your business finances efficiently.
Comparing Business Banking Features
Comparing business banking features is essential to find the best account for your needs. Look at the range of services offered, including payment processing, expense tracking, and integration with accounting software. The best business bank account will provide all the features necessary to support your business operations and growth.
6. Cost of Business Banking and Free Accounts in Germany
Understanding Account Management Fees
Most business bank accounts come with account management fees. These fees can vary significantly between banks, including monthly maintenance charges, transaction fees, and additional costs for services like international transfers. Understanding these fees helps you manage your finances effectively and choose the best business bank account.
Hidden Costs to Be Aware Of
Hidden costs can significantly influence the cost of maintaining a business bank account. These may include fees for exceeding transaction limits, charges for additional services, or penalties for insufficient funds. You should know the features and fees for your business account to avoid unexpected expenses.
Free Business Bank Account Options
Free business bank accounts are an attractive option for freelancers looking to minimize costs. These accounts often come with no monthly fees, but checking for hidden costs or limitations is essential. Free business bank accounts can be a great way to manage your finances without incurring unnecessary expenses.
6. Using Private Accounts for Business Purposes
Legal Implications When Mixing Personal and Business Finances
Using a private account for business can have legal implications or complicate tax filings.
Corporate entities are legally obliged to have a separate bank account to split business-related and personal transactions. In practice, however, most banks prohibit the business use of their current accounts (Girokonto), even for freelancers and self-employed people. Generally, the number of free business accounts is very restricted, and they offer fewer perks. From an accounting point of view, it therefore makes sense to maintain two accounts: a business account where you pay business expenditures and receive customer payments and a current account where you transfer your “salary” and pay private expenditures.
Advantages of Having a Separate Business Account
Having a separate business account offers several advantages. It simplifies accounting, makes tax preparation easier, and provides a clear picture of your business finances. A dedicated business bank account enhances professionalism and can help build credibility with clients and suppliers.
7. Frequently Asked Questions
Which banks offer a free business account in Germany?
Which German banks allow you to open an account as a foreigner or non-resident from abroad?
Is there a free bank account with a sign-up bonus?
Can I use my private bank account instead of opening a German business account?
What is the cost of money transactions with a German business account?
Disclaimer:
The information in this post is non-binding and for informational purposes only. It is not a complete market overview. We do not take responsibility for the accuracy and up-to-dateness of the data. Please re-check the final conditions and prices on the providers’ websites (§18 ZKG).
We do not intend to provide financial advice. All investments involve risks of loss.
Some of the links in this article are promotional links. We gain a commission if you purchase an item or open an account following this link. It helps us keep this site running and does not come at any cost to you.
