Freiberufler, literally translated as “freelancer” in English, refers to self-employed professionals in Germany who offer specialized services based on their qualifications.
What is “Freiberufler”?
Freiberufler are independent professionals who provide services in their field of expertise, which typically requires a high level of education or specialized training. This category includes a variety of professions such as artists, engineers, lawyers, doctors, and consultants. In Germany, being a Freiberufler has implications for tax registration, visa applications, and membership in professional organizations[1].
More information about “Freiberufler”
Freiberufler are distinct from tradespeople (Gewerbetreibende) in that they do not need to register a trade (GewerbeGewerbe translates to "trade" or "business" in English. It refers to a self-employed commercial activity in Germany, encompassing a wide... More) or pay trade tax (GewerbesteuerThe term "Gewerbesteuer" translates to "trade tax" in English and refers to a tax levied on the income of businesses... More). They also have fewer bureaucratic obligations compared to tradespeople, such as not needing to join the Chamber of Industry and Commerce (IHKThe Industrie- und Handelskammer (IHK), translated as the Chamber of Commerce and Industry, is a pivotal institution in Germany that... More) or to use double-entry bookkeeping unless they exceed certain revenue or profit thresholds[1].
Related to “Freiberufler”
Here are some additional terms that are related to Freiberufler:
- GewerbetreibenderA "Gewerbetreibender" is a term used in Germany to describe a self-employed individual whose business is registered as a trade.... More: A self-employed person who does not qualify as a Freiberufler and whose business is considered a trade (GewerbeGewerbe translates to "trade" or "business" in English. It refers to a self-employed commercial activity in Germany, encompassing a wide... More)[1].
- GewerbeanmeldungGewerbeanmeldung translates to "trade registration" in English. It is a mandatory step for individuals in Germany who wish to start... More: The process of registering a trade with the local trade office, which is required for Gewerbetreibende but not for Freiberufler[1].
- IHKThe Industrie- und Handelskammer (IHK), translated as the Chamber of Commerce and Industry, is a pivotal institution in Germany that... More: The Chamber of Industry and Commerce, which Gewerbetreibende must join and pay membership fees to, unlike Freiberufler[1].
- KleinunternehmerA "Kleinunternehmer" translates to "small business owner" in English. This term refers to individuals or entities that qualify for a... More: A small business owner who can be either a Freiberufler or a GewerbetreibenderA "Gewerbetreibender" is a term used in Germany to describe a self-employed individual whose business is registered as a trade.... More and may qualify for VAT exemption under certain conditions[2].
Understanding the distinction between Freiberufler and other forms of self-employment is crucial for compliance with German regulations and for optimizing tax obligations.