It regularly happens that someone works in several EU countries. Someone lives in the Netherlands, works for a German employer also at home (home office) and also visits Dutch customers. Or one is an international truck driver for a haulage company in Germany.
If you work in more than one country, you will find assignment rules in the EU regulation that determine which social legislation must be applied. It is important whether you are self-employed, an employee or a civil servant. It is also important whether you also work in the Netherlands (your country of residence).
European regulations
In principle, you are covered by social securityin the country where you work.
If you only work in Germany, it is not difficult: You then fall under German social legislation and pay social security premiums there. But what if you work in several countries?
The decisive factor is where the work is actually carried out. This is especially important if you work for your German employer from home (home office) or if you visit customers in your country of residence or if you also drive in the Netherlands for a German haulage company.
- If you also work for your German employer in the Netherlands (your country of residence), and if this accounts for 25% or more of your total working time and/or pay, then you are covered by Dutch social security. This also applies to home work. If this is less than 25%, you are covered by German social security.
- Even if you work for several employers in several countries (including the Netherlands), the time and/or salary you (earn) in the Netherlands is decisive in determining which legislation must be applied. If you work 25% or more in the Netherlands, Dutch social security legislation applies.
- If you work for an employer based in the Netherlands and work in several countries, including the Netherlands, you will always be covered by Dutch social security legislation.
- If you work in several EU countries but not in the Netherlands, you will always be covered by the social security legislation of the country where the employer is based.
- If you work for different employers in several countries but not in the Netherlands, then Dutch social security legislation applies.
The SVB’s German Affairs Office in the Netherlands has published a brochure that clearly lists the various rules. You can download this brochure here.
Caution: If you work for a Dutch employer and a German employer, this means that one of these employers has to pay the social security premiums in the other country.
Civil servants
There are exceptions for civil servants. For civil servants, the social security of the member state where the civil servant has an employment relationship is valid. Someone who works in more than one country and works as a civil servant in one of these countries is covered by social security in the country where they work as a civil servant. If someone works as a civil servant in Germany and in the Netherlands, it has to be assessed according to the 25% rule which social legislation is valid.
Combination of employee and self-employed person
If you work as an employee in one country and as a self-employed person in the other, you are always covered by the social security legislation of thecountry where you work as an employee. If you do not work as an employee but as a self-employed person in several countries, please contact a Border Info Point for advice.
International truck drivers
No exception is made for international truck drivers. Here, too, the 25% rule applies. Read more information here.
Work on board a seagoing vessel
Special rules apply towork carried out on board an ocean-going vessel. In general, work performed on board a seagoing vessel is considered to be work performed in the member state whose flag the seagoing vessel is sailing. This means that the flag under which the seagoing vessel sails is decisive. However, the situation is different if the wage is paid by a company based in another Member State. Then the legislation of the Member State of this registered office is valid. It is therefore important that you must always obtain additional information in advance in order to clarify your situation clearly. For crew memberson Rhine vessels, a separate regulation applies again, namely the Convention on Social Security for Rhine Boatmen. Always contact a border info point for advice if in doubt.
In situations involving international transport (by road or not), it is always important to get an overview of all the relevant facts. Applying for an A1 is an important part of getting certainty in the overall situation.
Co-incidence with unemployment benefit
The European Regulation clearly regulates which social security legislation applies when someone works in another country. Unfortunately, the rules are not clear when working in another country in combination with a (partial) unemployment benefit. Most EU countries apply the rule that the social security legislation of the country paying the unemployment benefit applies, which means that the employer must always pay social security contributions in the country from which the benefit comes.
The Netherlands takes the position that the social security legislation of the country of work applies if the unemployment benefit is less than 25% of the total income. If the unemployment benefit is 25% or more of the total income, then according to the Netherlands, the social security legislation of the country where the work is done applies.
If the above situation applies to you, please request an A1 declaration.
A1 declaration
It is advisable to request an A1 declaration from your health insurance company or the SVB if you work in several countries. The A1 declaration determines which social security legislation applies to you. Employers are advised to keep it with their payroll administration. You must be able to prove that you are covered by social security yourself. This declaration is also necessary in order to avoid having to pay contributions twice. If you work in several Member States at the same time, you must apply for the A1 declaration in the employee’s country of residence.
This is of particular interest to Dutch nationals who are covered by German social security. In order to avoid having to pay social security contributions and possibly ZVW contributions on the German salary in the Netherlands, it makes sense to apply for this A1 declaration (together with your German employer).
Because there are always cases of doubt and people may be caught sitting on the fence, it is possible for two EU countries to agree to deviate from the rules. You can get more information about this in Germany from the health insurance company and in the Netherlands from the (Sociale Verzekeringsbank).
Income tax
There are different rules for income tax. To assess where you have to pay tax, the double taxation agreements between the various EU countries are decisive. If you are only concerned with the situation between the Netherlands and Germany, the double taxation agreement between the Netherlands and Germany applies. This roughly regulates that income from work is taxed in the country where the work is done. Someone who works in two countries therefore pays income tax in two countries; this is also called a salary split.
Working in more than 2 countries (including international drivers)
Do you work in more than two countries, including your country of residence, and have an employer in another country? Then the rule is that you pay tax in the country where your employer is based for the days you work in that country and in the country of residence for the other days. There is an exception for employees who work more than 183 days in a third country. In these cases, always contact a Border Info Point or the for advice.