2026-10-29
From unemployment benefit to freelancing in Germany: the start-up grant explained
I am taking this route myself in 2027, so this is the guide I needed. The start-up grant (Gründungszuschuss) is generous, but it has one trap: if you start your business before the agency approves your application, it is gone.
Six months of your unemployment benefit plus 300 euros a month for social insurance. After that, another nine months of 300 euros if you show that you are still self-employed full time. Your profit is not deducted during this time.
The catch: the agency decides at its discretion. You can do everything right and still get a no, for example if they think a job is easy to find for you.
While you receive benefit, you may work on the side for under 15 hours a week if you report it first. Most of what you earn is deducted, so it is not about money. It is about first clients and references, which make your business plan believable.
ASIM's freelance mode takes three dates (last working day, first day unemployed, start of self-employment) and turns them into every deadline above. It also works out your minimum day rate and writes invoices with the mandatory details. Your data never leaves your browser.
This is guidance, not legal or tax advice. The employment agency decides each case. As of October 2026.
What you can get
Six months of your unemployment benefit plus 300 euros a month for social insurance. After that, another nine months of 300 euros if you show that you are still self-employed full time. Your profit is not deducted during this time.
The catch: the agency decides at its discretion. You can do everything right and still get a no, for example if they think a job is easy to find for you.
What you need
- You receive unemployment benefit (Arbeitslosengeld I).
- At least 150 days of entitlement are left on the day you start. With twelve months of entitlement, that means starting within about seven months.
- A business plan with figures for the first months.
- A viability statement (Tragfähigkeitsbescheinigung) from a recognised body such as the chamber of commerce (IHK).
- Full-time self-employment, which means at least 15 hours a week.
The order that works
- Talk to your adviser first, before you register anything.
- Write the business plan. Offer, prices, customers, costs. Honest numbers beat pretty ones.
- Get the viability statement. Allow a few weeks.
- Apply for the grant before your first day. This is where most people fail.
- Then register. A trade at the local office, or as a freelancer directly with the tax office. Send the tax registration form through ELSTER within one month.
- Sort out insurance. Tell your health insurer. Apply for voluntary unemployment insurance within three months of your start, or the option is gone for good.
Testing the waters first
While you receive benefit, you may work on the side for under 15 hours a week if you report it first. Most of what you earn is deducted, so it is not about money. It is about first clients and references, which make your business plan believable.
A tool for it
ASIM's freelance mode takes three dates (last working day, first day unemployed, start of self-employment) and turns them into every deadline above. It also works out your minimum day rate and writes invoices with the mandatory details. Your data never leaves your browser.
This is guidance, not legal or tax advice. The employment agency decides each case. As of October 2026.