• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Search

  • My account
  • Cart
  • DE

Red Tape Translation

  • Home
  • Services
    • All Services
    • Take a Translator
      • Appointments at public offices
      • Notary contract interpreting
      • Interpreting at WEG (owners’ association) meetings
    • Relocation coaching
      • Learn more
      • Top Up Your Credit
    • Certified translations
    • Corporate translations and web copy
    • German home loan translations
    • German lease summary in English
    • Red Carpet Registration in Berlin
  • Resources
    • Resources
    • Frequently Asked Questions
    • Sign up for our newsletter
    • Our YouTube Channel
    • Visit us on Facebook
    • Instagram
  • Blog
  • About Us
    • Meet the Team
    • Why Choose Red Tape Translation?
    • Testimonials
  • Contact

I’m a freelancer, right? Or am I a self-employed trader? What’s the difference?

February 17, 2020 by Kathleen Parker Leave a Comment

freelancer or self-employed

If you write your own invoices, if you have multiple clients and if you make your own hours then you are self-employed (selbstständig) in Germany. So far, so good. But the tax office (Finanzamt) divides self-employment up into two further categories: you’re either a freelancer (Freiberufler) or you have a trade (Gewerbe). We help you find your true self (from a tax perspective, anyway).

What do freelancers do?

Freelancers are in professions that rely on the transfer of knowledge, fields like humanities, arts, science, law. Most freelance professions require a university degree or special qualification, and they are usually providing a service rather than manufacturing a product for a customer. So, for example, if you’re a dentist or a musician, or a doctor, a writer, translator, language teacher you’re probably a freelancer.

Here are some examples of typical “freelance” lines of work.

Cultural professions: certified teacher/educator, designer, journalist/photo-journalist, interpreter, translator, writer, yoga teacher, musician, actor, dancer.
Legal, tax and business consultancy-related professions: attorney, auditor, chartered accountant, economic advisors, management consultant, notary, patent attorney, tax advisor, tax agent
Medical professions:, dentist, doctor, homeopathic practitioner, pharmacist, physiotherapists, veterinarian
Scientific and technical professions: architect, biologist, chemist, computer scientist, engineer, environmental expert, industrial chemist, pilot, surveyor, sworn expert.

What does ‘gewerblich’ mean?

Any profession that isn’t “freelance” is considered a trade activity (gewerblich). It’s considered as earning money based on a repeated action, such as selling a product. Some services are also considered trades – e.g. if you clean houses, babysit, or work as a bike courier or a coach. If you make money from advertising on websites, that’s a trade too. Here is a list of “Katalogberufe” – a catalogue of freelance professions, if you will. If your profession isn’t on it or isn’t similar to something on this list, then you’re most likely a tradesperson.

If your profession is considered a trade, you need to register your trade (you can read our guide on this registration process here!) and get a certificate called a Gewerbeschein. You will also be treated differently for tax purposes: if you earn more than 24,500 EUR, you will be charged trade tax.

Can I be both?

Do you have two lines of work? Do you work in a grey area? Are you a content writer who also has a stream of income from people who place ads on your blog? It is possible to be both a freelancer and a trader at the same time. You might need two different tax numbers. It might also mean double bookkeeping: allocating your freelance income and expenses to one tax number and your trade income and expenses to the other.

How do I figure out where I fit in?

If you’re confused, that’s completely understandable – there are all sorts of grey areas. Here are some typical ones that leave everyone scratching their heads:

  • IT and software developers with university degrees or relevant vocational training might be considered freelancers even some self-taught. Those who can’t demonstrate a level of knowledge comparable to a university degree sometimes get classified as a trader.
  • Photographers: advertising photography (trade) vs. artistic photography (freelance)
  • Filmmakers who spend more time producing /marketing their films than they spend creating them
  • Advisors/coaches
  • A driving instructor who doesn’t have a driver’s license (you gotta laugh)…

Sometimes the Finanzamt gets it wrong and sometimes the foreigner’s office can’t figure it out! A good first step is to take a look at this list of freelance professions. Your second step could be either to consult with a tax advisor or simply contact the Finanzamt, describe your work and see what they say.

Filed Under: Being self-employed, Freelance Life Tagged With: self-employed, freelancer, self-employed trader

English-speaking Lawyers in Berlin
Farewell, Sarah!

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Archives

Categories

  • Life in Berlin
  • Learning German
  • Moving to Germany
  • Being self-employed
  • About Red Tape Translation
  • Dealing with Problems
  • Doing Business in Berlin
  • Freelance Life
  • Immigration and Visas
  • Kids in Berlin
  • Life Changes
  • Life in Germany
  • Moving to Berlin
  • Moving to Munich
  • Uncategorized

Tags

algii anmeldung appointment booking berlin artists visa berlin auslanderbehorde berlin bank account berlin berlin startup brexit burgeramt berlin buying property contracts corona covid 19 foreigner’s office berlin foreign license in germany freelance freelance berlin freelancer freelancer insurance freelance work permit berlin government assistance government grant having a baby health insurance internship interpreting berlin job center KSK learning german Life Admin life in berlin paternity berlin red tape translation registration registration berlin renting an apartment berlin self-employed services taxes translator berlin unemployed unemployment visa berlin work permit berlin

Search

Footer

RTT have always been extremely professional, thorough, accurate, and easy to work with.

Julie Wyma
Berlin

Sign up for the newsletter

Connect with Red Tape Translation

© 2012 - 2023 Kathleen Parker

Legal Notice (Impressum) Terms of Service Data Protection and Privacy Policy

Website by Laura Yeffeth.