Working remotely for a company in another country? Find out which country taxes you, estimate your net salary, and understand the key rules for cross-border taxation in Europe.
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This is a simplified estimate. Cross-border taxation is complex and depends on your specific circumstances, including the exact tax treaty between the two countries, your visa/work permit status, where you perform work, and whether you have other income sources. Always consult a qualified cross-border tax advisor before making decisions.
When you live in one European country but work for an employer in another, your tax situation becomes more complicated than a typical domestic employment. The fundamental principle across Europe is straightforward: you pay income tax in your country of tax residence, which is generally where you live. However, there are important exceptions, special rules, and administrative requirements you need to understand.
Cross-border taxation in Europe is governed by a network of bilateral tax treaties (also called double taxation agreements, or DTAs) between countries. These treaties determine which country has the right to tax specific types of income and prevent the same income from being taxed twice. Nearly all European countries have treaties with each other, following the OECD Model Tax Convention.
The 183-day rule is perhaps the most widely referenced concept in cross-border taxation, but it is also frequently misunderstood. Under most tax treaties, employment income may only be taxed in the country where the work is performed if the employee is present in that country for more than 183 days in any 12-month period (or in some treaties, within a calendar year or fiscal year).
If you spend fewer than 183 days working in the employer's country, and your salary is paid by an employer that does not have a permanent establishment in that country, then generally only your country of residence can tax your employment income. However, this rule is a treaty-level provision and does not override domestic tax residence rules. You should also note that some countries count days differently: some count any partial day as a full day, while others only count days where you perform work.
For fully remote workers who never set foot in the employer's country, the 183-day rule is rarely an issue. The more relevant question is whether working from your home country creates a "permanent establishment" for your employer, which could trigger employer obligations in your country of residence.
Social security is handled separately from income tax under EU law. Regulation (EC) 883/2004 coordinates social security between EU/EEA countries and Switzerland. The general rule is that you pay social security contributions in only one country, and that country is determined by specific rules:
The A1 form (Portable Document A1) is the certificate that proves which country's social security legislation applies to you. Your employer or you must apply for it from the competent social security institution. Carrying a valid A1 form is important, as it exempts you from paying social security contributions in the other country.
All 19 countries covered by this calculator have extensive networks of bilateral tax treaties with each other. These treaties typically provide three types of relief from double taxation:
For most fully remote workers, double taxation is not a concern because the income is typically only taxable in the country of residence. Double taxation issues arise more frequently for people who split their time between two countries or who have income from sources in the employer's country (such as rental income or dividends).
You live in Country A and work 100% remotely for a company in Country B. You are tax resident in Country A and pay all your income tax there. Your employer may need to register in Country A to handle payroll and social security, or alternatively, use an Employer of Record (EOR) service. This is the most straightforward cross-border scenario, but the employer's obligations should not be overlooked.
Your employer in Country A sends you to work in Country B for a temporary assignment (up to 24 months). With an A1 form, you remain in Country A's social security system. Income tax depends on the duration: under 183 days, typically only Country A taxes you. Over 183 days, Country B may also have the right to tax. Your employer must handle the tax compliance in both countries.
You live near the border in Country A and commute daily to work in Country B. This is common along borders like France-Germany, France-Switzerland, Belgium-Netherlands, and Denmark-Sweden. Special rules often apply: some tax treaties have specific frontier worker provisions that allow taxation only in the country of residence, while others follow the general rule that employment income is taxed where the work is performed. The exact treatment varies significantly by country pair.
You move between multiple countries while working remotely. This creates the most complex tax situation, as you may inadvertently trigger tax residence in a new country. Most European countries consider you a tax resident if you spend more than 183 days there, maintain your habitual abode there, or have your centre of vital interests there. Some countries (like Portugal and Greece) offer special tax regimes designed to attract remote workers and digital nomads.
When an employee works remotely from a different country than the employer, the employer faces several potential obligations in the employee's country of residence: