Professional Regulation and Authorisation for Cross-Border Work

By Dr. Theresa Rath, Attorney at Law

Residence rights and professional authorisation answer different questions

A person who wishes to live in another EU Member State and work there on a self-employed basis may generally rely on EU free-movement rights. This does not automatically mean that a particular profession may be practised there without further steps or that a protected professional title may be used.

Professional regulation, recognition procedures, professional-body requirements and professional-indemnity issues may arise alongside residence status. The relevant questions depend on the profession and country of activity. They may be identified at a preliminary level and prepared for review by the competent institutions or suitably qualified local advisers.

Legal advice is limited to German law, including the EU-law rules applicable in Germany. Individual questions of foreign professional regulation are not assessed conclusively; suitably qualified local advisers or the competent institutions are involved for that purpose. Tax advice is not provided.

Is the profession regulated in the country of activity?

A profession may be regulated in the country of activity where access or practice depends on particular qualifications, examinations or registration. Use of a professional title may also be subject to specific rules. Whether this applies in an individual case is governed by the law of the country of activity and requires suitably qualified local review.

The classification may differ from one country to another. The preliminary review can therefore identify the institutions that may be competent and the evidence likely to be required. The conclusive professional-regulation assessment is then carried out in the country of activity.

Temporary provision of services or permanent establishment

The applicable requirements depend in part on whether individual services are provided temporarily and occasionally in another Member State or whether the activity amounts to a stable professional establishment there. Describing the arrangement as remote work, a project or a temporary stay does not determine its legal classification.

Duration, frequency, regularity and continuity are among the relevant factors. Temporary provision of services may require a prior declaration to the competent authority. Permanent establishment may instead require recognition or professional authorisation.

Recognition, declarations and professional-body registration

Depending on the profession, a qualification obtained in the home country may have to be recognised before work begins. In other situations, a declaration or registration may be sufficient. Certain professions are governed by specific EU rules, so a German authorisation is neither always transferred automatically nor always reassessed from the beginning.

Depending on the profession, further requirements may apply in addition to formal qualifications, such as language ability, professional good standing, membership of a professional body or additional evidence. The requirements that actually apply are determined by the competent authorities or professional bodies in the country of activity, or by advisers qualified there.

Protected professional titles, public presentation and contracts

Even where a particular service may be provided, use of a German professional title abroad can be subject to additional rules. This may affect websites, letterheads, email signatures, contractual documents and how services are presented to clients.

For some professions, it is also necessary to determine which services are reserved, whether documents may be signed or submitted in a professional capacity and which title may be used across borders. These questions can arise even where the service is delivered entirely online.

Remote work does not take place in a legal vacuum

An online service remains connected to physical and legal locations. Potentially relevant factors include where the professional is physically working, the country of residence, the seat of the professional structure, the client's location and the country in which the service is legally or practically used. Their relevance depends on the profession and the activity concerned.

Before moving or taking on cross-border instructions and projects, the countries affected by the arrangement should therefore be mapped. This provides the basis for identifying the professional body, authority or locally qualified adviser that needs to be involved.

Professional indemnity, pension schemes and further duties

Work abroad may require confirmation that existing professional-indemnity insurance covers the intended territorial and substantive scope. The conclusive review is carried out with the insurer or an appropriately specialised adviser.

For professions organised through professional bodies, membership, contributions, continuing-professional-development duties or professional pension arrangements may also be affected. These issues are identified at a preliminary level and then clarified with the competent institutions or specialist advisers.

Identifying professional-regulation issues early

The initial review records the profession, qualifications, existing authorisations, intended places of residence and work, type of services and expected working pattern. This identifies the German-law and EU-law questions that can be assessed and the points requiring a conclusive review by institutions or advisers in the country of activity.

RATH HAGEN can coordinate the involvement of professional bodies, insurers and suitably qualified local advisers. Their conclusions can then be aligned with the migration and social-security questions.