We continually receive new information on the new framework agreement regarding home office work from a neighbouring country. As a supplement to the last article (Rules for home office work in neighbouring country from 1 July 2023, 13.04.2023) you can find out more details about the new regulation in this article.
From 1 July 2023, a new exemption regulation for home offices in neighbouring countries will apply. This is intended to enable many cross-border workers to continue to work regularly in their home office without their social security moving to their country of residence. The responsible committee drawn up a framework agreement for this purpose. This agreement is voluntary, which means that the EU member states are free to sign and implement the agreement. Currently, Belgium and the Netherlands have already announced their participation, a confirmation for the German side is still pending.
Attention: This regulation only concerns social security. The rules on taxes and salary splits are not affected by the framework agreement.
A few details:
To whom does the framework agreement apply?
The new regulation applies to cross-border workers who telework in the country of residence (e.g. work from home) for the neighbouring country’s employer. Teleworking is defined as work performed via a direct network connection with the employer.
Note: No other work may be carried out in the country of residence (e.g. appointments with customers)! No work may be carried out in another (third) country either. In these cases, this new scheme does not apply. The scheme also does not apply to self-employed persons.
What does not change?
The “old” regulation, as it was before Corona, will in principle continue to apply to everyone. The new framework is an exception to the rule and must be applied for.
So it remains the case that if you work 25% or more of your total worktime in your country of residence, your social security switches to your country of residence. An A1 certificate must be applied for in the country of residence to prove social security.
What are the additional rules?
Those who meet the above conditions of the scheme and telework less than 50% in the country of residence can apply to keep their social security in the country of the employer. In this case, an A1 certificate is applied for in the country of work.
So there is a choice whether to use the new scheme or not.
What do I have to do to be covered by the new scheme?
Once the country where you live and the country of work has signed the agreement, you should apply for an A1 declaration as soon as possible. You can submit the application from 1 July 2023. You apply for your A1 declaration in Germany at the DVKA, in the Netherlands at the SVB and in Belgium at the NSSO. You have until 1 July 2024 to complete the formalities.
What if I do not meet the conditions?
An A1 certificate and also an individual exemption can always be applied for, even if your situation does not meet the conditions for the new scheme. However, the processing times here tend to be long. It is also not foreseeable how the competent authorities will decide on such an application.
Nevertheless, we recommend that all cross-border commuters always apply for an A1 certificate. This way you will always have proof of your status when it matters.
Normally, you always have to apply for an A1 certificate in your country of residence. An application for an exemption must always be made in the country where you would like to be covered by social security.
Further news:
For so-called “workations” (travelling to another country for several weeks for a combination of holiday and work), you need to apply for an A1 declaration of posting. This is applied for in the country of the employer and has the effect that social security does not change for the duration of the stay abroad.