Term
Liberal profession
Self-employment under a special act rather than a trade licence, such as a lawyer, doctor, architect, tax adviser or court expert. A professional chamber registers it, and for tax it is treated much like a trade.
Updated
What it means
A liberal profession is a business carried on not under a trade licence but under a special law. Examples include lawyers, notaries, doctors, pharmacists, architects, civil engineers, tax advisers, auditors, vets, and court-appointed experts and interpreters.
Authorisation is issued not by the trade licensing office but by a professional chamber, such as the Slovak Bar Association or the Slovak Chamber of Tax Advisers, or by a ministry in the case of court experts. The chamber usually requires relevant education, an exam, practical experience and adherence to a code of ethics.
For tax purposes, income from a liberal profession counts as business income, and the person is self-employed with a duty to pay social and health insurance. A liberal profession may also be practised through a company where the special law permits it.
How it works in practice
For clients in liberal professions we deal with the same questions as for sole traders: choosing between actual and flat-rate expenses, VAT registration, contributions and tax advances. On top come specifics such as mandatory chamber fees or compulsory liability insurance.
When choosing a legal form, we compare practising as an individual with practising through an s.r.o. For lawyers, doctors or architects there are special rules on who may be a shareholder and director, so check what the relevant law allows.
Compulsory professional indemnity insurance is a condition of practice for many liberal professions. The premium is tax-deductible, and the cover limit should reflect the actual risks of the work, not just the statutory minimum.
What to watch out for
A common misconception is that a liberal profession lacks the tax duties of a trade. Income is taxed the same way, and anyone exceeding the turnover threshold for mandatory VAT registration must register. Record-keeping and document retention duties apply equally.
When suspending or ending the practice, notify both the chamber and the insurers. Simply not paying chamber fees does not suspend anything, and the person remains liable for contributions until the change is properly reported.
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