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, registration with a professional body and professional-indemnity requirements may apply alongside residence law. These requirements differ by profession and country and therefore form a separate workstream within a cross-border arrangement.

Legal advice is limited to German law, including the EU-law rules applicable in Germany. Tax advice is not provided. Professional-regulation requirements in other countries are assessed by advisers qualified there.

Is the profession regulated in the country of activity?

A profession is regulated where access to or pursuit of it depends on specified qualifications, examinations or registration with a competent body. The use of a professional title may also be protected separately. Whether these conditions apply is determined by the law of the country in which the activity is to be carried out.

The classification may differ between Member States. A profession regulated in Germany may be defined differently elsewhere, while another country may regulate activities that have no comparable authorisation requirement in Germany. A profession that does not appear under its familiar title in a database may also form part of another regulated profession.

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.

Language ability, professional good standing, membership of a professional body or additional evidence may be required alongside formal qualifications. The competent authorities and professional bodies are those of the country of activity. Their requirements need to be identified early enough for a realistic start date.

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

German professional-indemnity cover does not necessarily extend to work abroad on the terms required. Territorial scope, insured activities and any requirements in the country of activity should be checked with the insurer or appropriately specialised advisers.

For professions organised through chambers or professional bodies, membership, contributions, continuing-professional-development duties and professional pension arrangements may also be affected. These issues do not necessarily follow the same legal allocation as residence law or social security and must be recorded separately.

Coordinating a professionally workable cross-border arrangement

The initial mapping covers the profession, qualifications, existing authorisations, intended countries of residence and work, type of services, clients and expected working pattern. This identifies the German-law and EU-law questions that can be assessed and the foreign requirements for which locally qualified input is needed.

Overall coordination can be centralised with RATH HAGEN. Reviews by professional bodies, insurers and advisers in the country of activity are organised as separate workstreams and then aligned with the migration and social-security parts of the project.