A Freiberufler is a member of a liberal profession in Germany such as a doctor, lawyer, architect, journalist, engineer or consultant. The key advantage over a commercial trader (Gewerbetreibender) is that a Freiberufler is exempt from Gewerbesteuer (trade tax) and does not register with the trade office or the chamber of commerce.
A Freiberufler pays personal income tax (Einkommensteuer) on net profit at Germany's progressive rates, plus the 5.5% solidarity surcharge where applicable and church tax if a member. Profit is calculated with a simple cash-basis income statement (Einnahmenuberschussrechnung).
Example: an independent engineer earning EUR 60,000 net profit pays income tax on the progressive scale but saves the trade tax a comparable trader would owe. On EUR 60,000, avoiding Gewerbesteuer at roughly a 15% effective municipal rate above the allowance can be worth several thousand euros per year.
- Exempt from trade tax
- Cash-basis accounting allowed
- Progressive income tax on profit
Compare with the Freiberufler calculator, read about Gewerbesteuer, or see Spain's autonomo.