Freelancers in austria & list of freelance professions & self-employment

Becoming self-employed is a dream that many people pursue. Being one's own boss and doing an activity that is fun are the motivations behind the decision.

Example profession for freelancers: writer
Stock photo ID: 223272037 Copyright: tsnorth/Bigstockphoto.com

But also the way out of unemployment can be a reason to make a new start as a self-employed person or freelancer. However, the path to your own business requires a lot of preparation and needs to be well planned. This guidebook deals with the topic of self-employment and freelance activities and addresses the important points.

What is a freelancer?

A freelancer is a person who performs a freelance activity independently and on his own responsibility. The freelancer is himself responsible for the care and advice of his customers. Unlike self-employment, freelancers do not have to apply for a trade license.

A simple registration with the tax office is sufficient for the activity. To be a freelancer, the freelancer must have the necessary expertise and skills to perform the desired activity. This may need to be proven, for example, by title or documents.

Self-employed or freelance – what is the difference??

There is often confusion as to whether one is a freelancer or self-employed – also referred to as a tradesperson. However, there are some differences. The freelancer works on a freelance basis and on his own account.

He carries out an activity and is responsible for it. A freelancer may have employees, but they may primarily perform a helping function. The main activity must be provided by the boss or freelancer itself. An example is the lawyer and his paralegals.

But caution! Not everyone is allowed to work as a freelancer. There is a catalog that determines who may and who may not work as a freelancer. Some examples are:

• Artists
• Writer
• Teacher
• Scientists

A list of freelance professions can be found on the Internet, on numerous portals on the subject of self-employment and freelancing, and at the relevant ministries.

The reason for these restrictions is related to the rights and duties. For example, a freelancer does not have to register a business and does not have to keep books. A simple income statement is sufficient.

In addition, freelancers do not have to pay trade tax and do not have to become a member of a chamber responsible for the profession. In comparison to tradesmen, freelancers are also not subject to trade and commercial law.

Self-employed or tradespeople on the other hand must register a business and also keep books. In addition, they may have to join a chamber of commerce and are subject to commercial and trade law in their activities.

In comparison to freelancers, however, self-employed persons may employ staff or – depending on their level of education – also train staff. In order to be allowed to operate a business independently, a trade must be registered. A trade license is therefore required.

Attention: Freelancers are not always freelancers!

The freelancer, often simply referred to as a freelancer, is not necessarily a freelancer. This is a person who receives a contract for freelance work. He performs a certain activity for a company or provides a certain service for this company.

Unlike an employee, the freelancer does not benefit from vacation or employee benefits and does not receive a salary. Instead, he creates an invoice for his services. A freelancer can therefore be both a businessman with his business and a freelancer.

What freelance professions are there in Austria?

Freelance professions are numerous in Austria. Especially in the legal field there are many freelancers. Beyond that however also the welfare occupations are numerously represented in the division. Doctors and alternative practitioners are some examples.

The creative professions are also particularly well represented among the freelancers. Artists, copywriters and authors are just a few examples from the artistic field, where many freelancers can be found.

How do I have to insure myself as a freelancer??

How you have to insure yourself as a freelancer depends on your activity. Insurance options exist, for example, either in the commercial social insurance – as well as for employees. Alternatively, the insurance can also be done according to the law for the freelance self-employed.

As a freelancer, do I have to have an education or training?

This can not be answered in a general way. Whether an apprenticeship or a degree is required depends on the profession in which you want to become a freelancer.

If the profession requires a degree or training – as is the case, for example, with doctors – then the appropriate proof must be provided before taking up the work.

If training or studies were completed abroad, then a nostrification certificate is often also required in order to verify them. This is usually done together with proof of supplementary training, a completed exam or a review of skills in Austria.

Earning opportunities as a freelancer and self-employed person

How much money you can earn as a freelancer or self-employed person depends on which activity you perform.

There are no fixed rates or sums. Unlike an employee, there is no fixed salary or regular payment. Here you are challenged yourself and have to look for customers to earn your money.

Taxes as self-employed and freelancer

As a self-employed tradesman you must of course pay taxes.

How much depends on the income and also depends on whether the small business regulation applies or not. In case of doubt, it makes sense to get detailed information from a tax advisor in advance.

If you are a freelancer, you also have to pay taxes. Unlike a tradesman, however, you do not have to keep books. How many taxes are due depends on the profession and the income generated.

In general, the freelancer will have to pay less taxes than a business person. Again, to be on the safe side, one should seek the help of a professional tax advisor. This person can estimate the taxes to be expected and can help to complete the formalities correctly in order to avoid unpleasant surprises.

What happens in case of illness and incapacity for work?

If you are ill as a self-employed person or freelancer and are unable to carry out your work, you will have to pay for the losses out of your own pocket first of all. However, there are health insurance policies for the self-employed that can be liable in these cases and provide health or. Pay hospital daily allowance.

It is definitely worth taking out such insurance, otherwise you run the risk of ending up without any income. A suitable tariff can be found by making an appropriate comparison on the Internet and by seeking advice from insurance brokers.

Conclusion and summary

Self-employed or freelance. The differences seem trivial. Nevertheless, there are some very important things in which the two activities differ from each other.

Anyone who registers a trade and carries out an activity can be a tradesman or self-employed person. However, only certain professions are allowed to work as freelancers. In addition, freelancers have some advantages, for example, with regard to taxes and formalities. For example, you do not have to register a business or keep books.