If you work at home for a foreign employer, this is considered work in your country of residence. European Regulation 883/2004 regulates which social security schemes you are covered by if you work (part of the time) at home for a foreign employer. The so-called 25% rule applies here: if you work 25% or more of your working hours in your country of residence, you are covered by the social security system of your country of residence. Since 1 July 2023, it has been possible to work up to 50% of your working hours in a home office without having to transfer social insurance from your country of employment (i.e., the country in which your employer is based) to your country of residence. But be careful: some conditions apply here:
- You work for a single employer in another EU country or for several employers in the same country
- You work both in your employer’s country (50% or more)
- You also work in your country of residence, for example from your home office, but only telework via a direct connection to your employer (less than 50% of working hours), excluding visits to customers or similar.
- You do not usually also carry out your work in a third country
- You work between 25% and less than 50% at home.
- The countries concerned have signed the agreement (Germany, the Netherlands and Belgium have signed the agreement)
An A1 declaration must always be applied for. This is done via the employer in the country of employment on basis of the framework agreement and in accordance with Article 16 of EU Regulation 883/2004. The Dutch employer does this with the SVB, the German employer with the DVKA and the Belgian employer with either the RSZ in Flanders, the ONSS in Wallonia or the LSS in the German-speaking Community.
The exceptions to the coronavirus rules no longer apply to taxes as of 1 July 2022. This means that if you work in two countries, you are normally liable for tax in two countries. The normal rules from the tax treaties apply. This means that you must pay income tax in the country where it was earned. For example, if you work full-time, work two days at home and three days at your employer’s, you must pay tax on 40% of your salary in your country of residence and 60% of your salary in your country of employment.