Hoeness went to jail in June 2014 after being found guilty of concealing â‚¬28.5m (Â£22.4m; $31m) from tax inspectors.
Last year he was allowed to leave prison during the day but had to return in the evening. His sentence was shortened on account of good behaviour.
Hoeness, 64, was in the West Germany team that won the World Cup in 1974.
He was a football legend in the 1970s, playing mainly on the right wing or in right midfield.
During his day release last year he returned to Bayern Munich to help develop the youth teams. He spent most weekends at home.
During a four-day trial, he told the court he deeply regretted his "wrongdoing".
Despite the tax evasion scandal, Hoeness remains a very popular figure at the club he helped build up.
Following his conviction, Hoeness resigned as Bayern Munich president and was later replaced by Karl Hopfner.
Former Bayern Munich football chief Uli Hoeness has been released from jail on parole after serving half of a three-and-a-half year term for tax evasion.