Self-host n8n: automation without cloud dependency

n8n is a tool for workflow automation from Berlin that you on your own servers or operate it with a hosting provider in Germany. Self-hosted, your data run not through a third-party cloud service, and there are no costs per execution incurred. Important to know: the license (“Sustainable Use License”) permits internal use in the company, but not the resale of n8n as a service. Strictly speaking, n8n is therefore “fair-code” and not open-source software in the narrower sense.

What n8n can do

• Connect programs: Hundreds of ready-made building blocks for common services, plus general interface building blocks.
• Build workflows visually: Triggers, conditions, loops, error handling.
• Integrate AI: Language models – locally or with a provider – for text recognition, summaries, or decisions.
• AI agents: Workflows in which a language model independently uses tools – see AI agents with open source.
• Custom logic: Where building blocks are not enough, small code steps add to them.

Why self-host?

• Data protection:Customer data, invoices and documents pass only through your infrastructure in Germany.
• Costs are predictable: no billing per execution; costs for servers and operations.
• Control: you determine updates, extensions and access.
• Proximity to internal systems: n8n can reach systems in your own network that should not be reachable from the cloud.

What the license allows – and what it does not

• Allowed: Use n8n internally to automate your own business processes – even if the company makes money with it.
• Allowed: Offer services around n8n, such as consulting and setup for customers.
• Not permitted without a commercial license: sell n8n itself as a service to third parties or embed it in a commercial product.
• Additional features: Some features for larger organizations (such as certain SSO and administration functions) are part of paid editions.

If in doubt, check the current license with the vendor.

What operations require

• Servers in Germany with database and backup.
• Updates: regularly, with testing of the most important workflows.
• Monitoring: notification in case of failed processes.
• Manage access credentials securely: n8n stores access credentials for many systems – this makes it a worthwhile target for attackers.
• Access: Secure login, ideally via Single Sign-On.

Typical workflows in SMEs

• Website inquiry → CRM → confirmation to customer.
• Invoice inbox → extraction → filing → accounting – see Capture invoices by email.
• Phone assistant → structure the request → ticket – see AI phone assistant.
• New documents in Nextcloud → AI summary → notification.

A comparison with Zapier, Make and Power Automate shows Workflow automation: tools compared. We use n8n ourselves for our Process automation hosted in Germany and bundled in the automaisa Hub.

bettersorted relies on open, inspectable components – operated on servers in Germany and bundled in the automaisa Hub. We provide manufacturer-neutral consulting, are a BAFA-registered consultant and an authorized INQA coach. The Consulting and guided implementation can be handled via the INQA Coachingfunded at 80%; the appropriate path is shown by the Funding check. For an initial non-binding consultation: Contact.

Example: Service provider inquiry workflow

An illustrative scenario: A cleaning service provider receives inquiries via website, email, and phone. A self-hosted n8n workflow collects all inquiries, has a local language model extract location, service, and scope, creates a contact in the CRM, and sends a confirmation. Unclear inquiries are sent to dispatch with a summary. All data remains on the server in Germany.

Good practice for self-hosted n8n

• Name and briefly describe workflows
• Set up an error workflow that notifies you when problems occur
• Create credentials with minimal permissions only
• Test environment for major changes
• Regular backup of the database and keys

Costs and funding

For automation with n8n, there are no license costs for open-source tools. Costs arise for setup (planning, installation, integration, testing), operation (server or hosting in Germany, updates, monitoring, data backup) and support (training, rules, contacts). We do not quote fixed prices because scope and starting point vary greatly.

Eligible for funding is the consulting and guided implementation: INQA-Coaching covers 80% of coaching costs nationwide (up to €11,520, vouchers until 30/06/2028); a preliminary analysis is subsidized by the BAFA consulting subsidy with 80% in the new federal states, Lüneburg and Trier, otherwise 50% – for applications submitted by 31.12.2026.

Frequently asked questions

Is n8n free of charge?

The self-hosted Community version can be used for internal purposes without license fees. Costs arise for servers and operation; some additional features are part of paid editions.

Is n8n open source?

The code is public, but the license (“Sustainable Use License”) restricts resale. The vendor therefore describes n8n as “fair-code”; by strict definition, it is not open-source software.

May I use n8n commercially in the company?

Yes, for automating your own business processes. Without a commercial license, it is not permitted to sell n8n itself as a service to third parties.

Is self-hosted n8n GDPR-compliant?

It can be operated in a GDPR-compliant way because the data remains on your servers. However, you still need to check which connected services receive data, and organize rights, logs, and deletion.

As of October 2026. Models, versions, and licenses change quickly — before making a decision, check the current license with the provider.