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As a military spouse, it can be difficult finding employment. Constant moves, TDYs, deployments and family obligations can put a damper on job opportunities. Home-based businesses (HBB) are an excellent alternative to traditional office jobs. Flexible schedules and the option to work from home are alluring to many spouses and dependents. Moving overseas, however, can make HBB ownership rather onerous and complicated. Here are some steps to help navigate the murky waters of operating a HBB overseas.
The basics
As a military dependent, the Status of Forces Agreement (SOFA) governs your stay overseas. SOFA is not a one-country-fits-all type of agreement; each host nation has different rules and regulations. Home-based businesses must adhere to the SOFA statutes of your host country. The best place to start is your legal office. Installation staff can help explain SOFA and what steps need to be taken to establish your business. However, the office cannot assist you in filling out the proper documents, or give legal advice pertaining to your HBB.
If you live on a military installation and plan to run your business from your residence, you will need to obtain permission from the installation commander. You will also need to fill out a business application form at the housing office. If your business is in direct competition with AAFES or their contractors, your application may be denied.
Operating in Germany
Setting up your HBB in Germany is similar to setting up utilities — it is an exercise in futility, patience and paperwork. Before you start, you will need to register your business at the local German trade office (Gewebeamt). This office will let you know what type of permits or certifications you may need. In some cases, your business may be considered a “free occupation,” and you will not need to register with the trade office. You will also need to purchase a business license at the city hall or Rathaus.
Once you have registered with the trade office, your information will be forwarded to the German tax office (Finanzamt), for assignment of a German tax ID number. If you didn’t need to register at the trade office, you must contact the tax office to obtain a number. You may want to consult a German accountant or tax attorney to ensure you file taxes properly.
Rules and restrictions
Once you’ve completed paperwork and are ready for business, there are few rules and restrictions to keep in mind:
• You cannot use APO/FPO/DPO mail to send or receive anything business-related. You must use your local address. If you use your APO for business purposes, you may lose your APO privileges and could be subject to a fine up to $20,000.
• You cannot use your military-registered vehicle for your HBB. Even if you’re just transporting goods from one location to another, you must use a vehicle registered on the economy.
• If you are importing goods from other countries (including the U.S.), you must declare and pay import taxes at customs. Do not use your DOD ID card when picking up your goods from customs. Look for local resources or vendors to help offset the cost of import taxes and customs fees.
While home-based businesses are allowed in Germany, the U.K. and Italy have different rules and regulations. In the U.K., a work permit is not required, but HBB owners must have National Insurance Numbers. You can obtain this number from your nearest Jobcentre Plus location. For more information, visit www.hmrc.gov/uk/ni/intro/number.htm#4.
In Italy, home-based businesses are not permitted. U.S. military dependents in Italy are required to have a Missione visa or Missione Soggriorno permit to reside in country and enjoy SOFA benefits. Unfortunately, these visas and permits do not give authority to work in Italy, aside from employment associated with the U.S. armed forces.
Owning a home-based business can be beneficial for those seeking employment. With the right tools, you can overcome the hurdle of operating one overseas.
