Tax Tips for Freelancers 2026: What's Changing in the DACH Region

The year 2026 is approaching, bringing a series of tax changes for freelancers in the DACH region. Especially for IT freelancers, who often work across borders or with complex project structures, it is crucial to be informed early. Those who know and skillfully utilize the new regulations, allowances, and deduction possibilities can not only save taxes but also minimize administrative effort. This article highlights the most important adjustments in Germany, Austria, and Switzerland and provides practical recommendations to ensure you are optimally positioned from a tax perspective.

Germany: More Scope and New Obligations

In German tax law for freelancers, some innovations are expected in 2026, demanding both relief and increased transparency. In particular, the digitalization of tax administration is progressing, which can simplify processes on the one hand, but also increase the requirements for seamless documentation on the other.

Increase in Income Thresholds and Flat Rates

Basic Tax-Free Allowance: A further increase in the basic tax-free allowance is expected, which will particularly benefit newcomers and freelancers with lower incomes. This means that a larger portion of the profit will not be taxed.
Small Business Regulation: The turnover limit for the small business regulation could be moderately adjusted. Even if IT freelancers often quickly grow beyond this limit, it is an important relief for starting out. Regularly check whether you still meet the requirements or if switching to standard taxation becomes sensible.
Home Office Flat Rate: The home office flat rate could be adjusted to better reflect the reality of mobile working. Current discussions revolve around increasing the daily flat rate or extending the maximum number of days.

Digitalization and Transparency

Digital Submission of Declarations (DiE-Erklärung): The tax office continues to rely on fully digital communication. The submission of tax returns and attachments is almost exclusively electronic. Freelancers should ensure they have the necessary software and corresponding certificates (e.g., ELSTER).
Platform Tax Transparency Act (PStTG): This law, which has been in effect for some time, will continue to be relevant in 2026. Digital platforms are obliged to report data on sellers and service providers to the Federal Central Tax Office. For IT freelancers who offer their services via freelancer platforms or marketplaces, this means increased transparency of their income to the tax authorities. Ensure that your accounting matches the data transmitted by the platforms to avoid queries.

Important Deduction Possibilities for IT Freelancers

Stay tuned and utilize the following items:

Further Training Costs: Expenses for seminars, online courses, certifications, or specialist literature in the IT sector are generally fully deductible. Investments in your expertise are investments that pay off twice.
Work Equipment: Laptops, monitors, software licenses, office furniture – everything you need for your work can be deducted. For more expensive purchases, depreciation over several years (AfA) must be considered.
Travel Expenses: Trips to clients, trade fairs, or further training can be claimed as business expenses (travel costs, accommodation, additional meal expenses).
Business Insurance: Professional liability insurance, legal protection insurance for self-employed individuals, etc., are deductible.
Pension Contributions: Contributions to Rürup contracts or Riester pensions can largely be deducted as special expenses, thus reducing the tax burden.

Austria: Focus on Simplification and Digitalization

Austria is also focusing on progressive digitalization in taxation and could have further simplifications for small businesses in mind for 2026. IT freelancers should particularly keep an eye on adjustments to exemption limits and the possibilities of flat-rate taxation.

Adjustments to the Small Business Regulation and Flat Rates

Turnover Limit for Small Businesses: The turnover limit for the genuine VAT exemption (small business regulation) is regularly discussed. A retention or moderate increase is conceivable. This is important for many IT freelancers in the start-up phase.
Business Expense Flat Rate: The option to claim a business expense flat rate instead of collecting all individual receipts is attractive for many freelancers. Regularly check whether your actual business expenses exceed the flat rate or if you can benefit from the flat rate. For certain industries (e.g., UBIT), there are often more specific flat rates.

Digital Reporting Obligations and Cash Register Obligation

FinanzOnline: The use of FinanzOnline is standard for most tax matters. Ensure that your access data is current and that you are familiar with the platform.
Cash Register Obligation: Although IT freelancers often do not need a physical cash register because they provide services that are not paid in cash, one should be aware of the general trend towards digitalization and traceability of income. For cash payments (even small amounts), corresponding receipts must be issued.

Grants and Deduction Possibilities

Research Premium: For IT freelancers involved in research and development projects (also as subcontractors), the research premium of up to 14% of R&D expenses can be an attractive incentive. Inform yourself thoroughly about the requirements, as these are often complex.
Further Education and Training: In Austria, too, expenses for professional development that serve to maintain, improve, or adapt professional knowledge are deductible.
Home Office/Workroom: The regulations for home offices or workrooms are stricter in Austria than in Germany. Deductibility is usually only possible if the workroom forms the center of professional activity and is used almost exclusively for professional purposes. However, there are flat rates for ergonomic office furniture that can be used even without a separate workroom.

Switzerland: Tax Attractiveness in Transition

Switzerland is known for its cantonal tax autonomy and lower tax rates. Nevertheless, there are developments here that freelancers should keep an eye on, especially with regard to international standards and digitalization.

Harmonization and International Standards

OECD Minimum Tax: Switzerland has joined the international OECD minimum tax for multinational companies. Although this primarily affects large corporations, it can also have long-term effects on the general tax landscape and indirectly influence lower taxes for SMEs or freelancers.
Value Added Tax (VAT): VAT rates could be adjusted. The turnover limit for VAT liability in Switzerland is comparatively high at CHF 100,000 (or CHF 500,000 for certain non-profit organizations), which saves many IT freelancers administrative effort. Regularly check your turnover so that you do not unexpectedly become subject to VAT.

Cantonal Peculiarities and Deductions

Cantonal Tax Competition: The tax burden varies greatly between cantons and municipalities. This plays an important role when choosing the place of residence or business for IT freelancers.
Profession-Oriented Deductions:
- Travel Expenses: The deduction for commuting is limited in many cantons.
- Professional Development: Costs for further training that serve professional development are deductible in most cantons.
- Costs for Workroom/Home Office: Regulations vary by canton. Often, a deduction is only possible if no office is available at the company's location.
Pension Provision (Pillar 3a): Contributions to Pillar 3a (tied pension provision) are fully tax-deductible up to an annual maximum amount and offer an excellent opportunity for old-age provision and tax savings.

Cross-Border Projects: Avoiding Double Taxation

For IT freelancers in the DACH region, cross-border projects are commonplace. The issue of double taxation is particularly relevant here.

Double Taxation Agreements (DTAs): Double taxation agreements exist between Germany, Austria, and Switzerland. These regulate which state has the right to tax, to prevent income from being fully taxed in both countries.
Permanent Establishment Principle: Carefully check whether you could establish a permanent establishment through longer project work abroad. This would have significant tax consequences. As a rule of thumb, a presence of more than six months in another country often applies. In the IT sector, however, there are also special regulations for "service permanent establishments."
VAT on Services Abroad:
- B2B Services: For services to other businesses in other EU countries, the so-called "reverse-charge procedure" generally applies. You issue an invoice without VAT and indicate the tax liability of the recipient of the service. This must be proven by a valid VAT identification number (VAT ID) of the customer and stated in the recapitulative statement (ZM).
- Services to Non-EU Countries or Switzerland: For services to third countries such as Switzerland, German/Austrian VAT is generally not applicable.
- Services to Switzerland from the EU: As a German or Austrian freelancer, you are providing a service in Switzerland that is, in principle, taxable. If your Swiss customer is subject to VAT, the reverse-charge procedure applies, and they owe Swiss VAT. For small businesses or private individuals, it can be more complicated.
- Services from Switzerland to the EU: Swiss freelancers providing services to EU customers must observe VAT regulations. If the customer is a company in the EU, the reverse-charge procedure generally applies here as well.
Tax Advice: For complex cross-border projects, specialized tax advice is essential to minimize risks and utilize optimization potential.

Practical Tips for IT Freelancers in all DACH Countries

Regardless of your exact location or specialization, there are some universal tips to help you optimize your taxes and reduce administrative effort:

Ongoing Accounting: Maintain your accounting diligently and continuously. Use accounting software that helps you digitally record and categorize receipts. Well-maintained accounting saves time and nerves during tax declarations and in the event of audits.
Separate Accounts: Separate private from business finances. A separate business account makes accounting and the overview of your income and expenses significantly easier.
Build Reserves: Always calculate a buffer for taxes. Depending on your income and deduction possibilities, you should set aside a realistic percentage of your income for tax.
Regular Further Training: Stay up-to-date not only professionally but also tax-wise. Tax law is dynamic, and new laws or rulings can have significant impacts. Use specialist media, webinars, or exchange with other freelancers.
Professional Support: Do not hesitate to consult a tax advisor, trustee, or lawyer. Especially for complex issues or cross-border activities, their expertise is invaluable and often pays off through tax advantages or the avoidance of errors.

Conclusion and Outlook

The year 2026 brings some relevant innovations and focal points in tax law for freelancers in the DACH region. While digitalization and adjustments to allowances are in the foreground in Germany and Austria, in Switzerland, cantonal peculiarities and general developments in the international tax environment must be observed. For IT freelancers, who often operate in a dynamic and cross-border environment, it is essential to proactively address these issues.

Those who have their accounting under control, consistently utilize deduction possibilities, and seek professional support when needed, can master the tax challenges of 2026 and fully concentrate on their core competencies. Stay informed, act proactively, and use the opportunities that tax law offers you to optimally shape your freedom as an IT freelancer.