Freelance or self employed

If there is a difference legally what is it? I know to be self employed you need to register yourself like a company and provide trade or schooling certificates, but do you need to do that as a freelancer? If not, good, then how is the taxing done? Could I still use the KATA tax scheme?

That depends on how you translate these two terms to hungarian.

There is usually no real difference between a freelance worker (i.e. an independent contractor) and being self employed for the work you are offering. Freelance work is a subset of self employment. And you can do freelance work 9 to 5, or you can be employed and holding a full time job and do side freelance work. That is you may work 9 to 5 all week at a bank, but freelance editing poetry on the weekends -- the poetry freelance work is still self employment even if you have another full time job.

A better question is the difference between a freelancer and an entrepreneur. But if you follow the two links I provided, that answers it.

The real question is how is each taxed? You have provided no information about what type of work you want to do (for example, you can not be a freelance shop owner). So can not answer this question. To answer that: ask an accountant. Which you should do anyway, as tax rules change all the time.

I don't want to be a shop owner I just want to sell my work in no specific work category. As self employment in Hungary goes I must prove a school accreditation for a specific skill, I don't want to do that, so I was hoping that freelance work was different in that you don't have to show a specific skill set.

meeda wrote:

I don't want to be a shop owner I just want to sell my work in no specific work category.


As far as I know, even a freelancer will probably also need to select work categories that describes the type of work you will be doing. After all, nobody wants a freelance surgeon running around without a medical degree.

meeda wrote:

As self employment in Hungary goes I must prove a school accreditation for a specific skill


Yes and no. Depends on what you want to do.

Want to open a medical clinic, then you probably need to show you have a medical degree. If you want to just hand weave baskets, you don't need to show you took Basket Weaving 101 in college.

You can also start a KFT.  Most of the time you don't need proof of a degree to set that up.