An employee may generally work remotely from another country for up to 183 days per year without automatically triggering tax or social security obligations in that country — but this is not a universal threshold. The exact limit varies by country, by tax treaty, and by type of consequence: different thresholds apply for tax, social security, and employment law purposes. In this article, we answer the most frequently asked questions about remote working from abroad, so that you — as an HR professional or employee — know exactly where you stand.
What rules determine how many days someone may work from abroad?
There is no universal day limit for remote working from abroad. Which rules apply depends on the country where the employee is staying, the length of the stay, the applicable tax treaty between the Netherlands and that country, and whether the work is performed as an employee or as a self-employed individual. The 183-day rule is a commonly cited rule of thumb, but it applies only to one specific aspect: the taxation of employment income.
The 183-day rule originates from tax treaties and stipulates that an employee becomes liable to pay tax on their salary in another country if they spend more than 183 days per year there, their salary is paid by an employer based in that country, or the cost of their salary is borne by a permanent establishment in that country. The taxing rights only shift when all three conditions are met simultaneously. For remote workers employed by a Dutch employer, the second condition often does not apply — but the line is thinner than many people realize.
In addition to tax, employment law and social security also come into play. Some countries have mandatory employment law provisions that apply as soon as someone works there on a structural basis, regardless of the employer’s nationality. There is therefore no single “safe” threshold that covers all possible consequences at once.
What are the tax implications of working remotely from abroad?
The tax implications of remote working from abroad depend on the country of stay, the length of the stay, and the applicable tax treaty. For short stays, the employee generally remains liable to tax in the Netherlands. For longer stays, the country of work may acquire taxing rights over part or all of the salary, leading to a dual filing obligation and potentially double taxation if no treaty applies.
In practice, the following tax consequences may arise:
- Tax liability in the country of work: If the employee stays in a country for more than 183 days and the other treaty conditions are met, that country may levy tax on the salary earned during that period.
- Loss of the 30% ruling: The Dutch 30% ruling requires the employee to work in the Netherlands for an employer established in the Netherlands. Extended remote working from abroad can jeopardize the continued application of this ruling.
- Permanent establishment: If an employee works structurally from abroad and makes decisions or concludes contracts on behalf of their employer there, the tax authorities in that country may determine that the employer has a permanent establishment there. This creates corporate tax liability for the employer in that country.
- Dual tax filing: In countries that have no tax treaty with the Netherlands, the employee may be required to file tax returns in both countries, after which a credit for taxes already paid must be applied.
It is therefore advisable to consult a tax advisor familiar with the specific country of stay whenever remote working extends beyond a few weeks.
How does social security work when temporarily working outside the Netherlands?
When temporarily working outside the Netherlands, an employee generally remains socially insured in the Netherlands, provided the stay abroad is limited and the employee works primarily in the Netherlands. Within the EU, the European coordination regulation (883/2004) determines in which country a person is socially insured. Outside the EU, bilateral agreements or the national legislation of the country of work apply.
Within the EU and EEA, the following main rules apply:
- An employee is socially insured in the country where they work substantially, generally defined as more than 25% of their working time.
- If an employee works less than 25% of their time in their country of residence, they are insured in the employer’s country (in this case, the Netherlands).
- If they work more than 25% of their time in their country of residence, social security liability shifts to that country of residence.
Within the EU, it is possible to apply for an A1 certificate. This document confirms in which country the employee is socially insured and prevents disputes with foreign authorities. For employees who structurally work from multiple countries, an A1 certificate is not a luxury — it is a necessity.
Outside the EU, the situation is more complex. The Netherlands has concluded social security agreements with only a limited number of countries. Where no such agreement exists, the employee may be liable to pay contributions in both countries, or may not be fully insured anywhere. This risk is frequently underestimated when it comes to remote working outside Europe.
Does an employee need a work permit to work remotely from abroad?
Whether an employee needs a work permit for remote working from abroad depends entirely on the country where they are staying and their nationality. Within the EU, EU citizens have the right to travel and reside freely, but this does not automatically mean they may work without restriction for a foreign employer without any registration obligation. Outside the EU, stricter rules apply.
A few practical scenarios:
- EU citizen working remotely from another EU country: Formally, no work permit is required, but for stays of more than three months, registration with the local authorities is generally mandatory. The employment and tax rules of the country of stay may become applicable.
- Non-EU citizen working remotely from a third country: The country of stay determines whether a work permit or visa is required. Many countries do not have a specific remote work visa, but do have rules about what is permitted on a tourist visa. Working on a tourist visa is prohibited in most countries, even when the work is performed for a foreign employer.
- Digital nomad visas: An increasing number of countries offer special visas for remote workers, such as Portugal, Spain, and Indonesia. These visas impose specific conditions regarding income, insurance, and length of stay.
For the Dutch employer, remote working from abroad does not change the permit situation in the Netherlands, as long as the employee is not actually working in the Netherlands. However, the employer is responsible for verifying that the employee is legally residing and working in the country of stay.
What are the risks for employers when an employee works remotely from abroad for too long?
If an employee works remotely from abroad for too long, the employer faces several serious risks: tax liability abroad, social security contribution obligations in another country, the creation of a permanent establishment, and exposure to the employment law of the country of work. These risks do not all materialize simultaneously, but can cumulatively result in significant financial and legal consequences.
The main risks at a glance:
- Permanent establishment: If an employee works structurally from abroad and has decision-making authority there or acts on behalf of the employer, the tax authorities in that country may determine that the employer has a permanent establishment there. This results in corporate tax liability in that country.
- Social security contribution obligations: If the 25% threshold is exceeded (within the EU), or in the event of an extended stay outside the EU, the employer may be required to pay social security contributions in the employee’s country of work.
- Applicable employment law: Many countries have mandatory employment law provisions that apply as soon as someone works there on a structural basis — such as minimum wage requirements, dismissal protection, or mandatory vacation entitlements that differ from Dutch rules.
- Penalties for non-compliance: If an employer fails to meet these obligations, this can lead to back payments, fines, and reputational damage — both in the Netherlands and abroad.
The risk of a permanent establishment is the most commonly underestimated in practice. Even a single employee who works structurally from abroad and concludes contracts or serves clients there may be sufficient to trigger a permanent establishment.
How do you establish a remote working policy for employees working from abroad?
A sound policy for remote working from abroad starts with setting a maximum length of stay per country per year, combined with an approval process for each request. Without a policy, employers risk employees independently deciding how long they work from abroad — with all the resulting tax and legal consequences.
An effective policy includes at minimum the following elements:
- Maximum length of stay: Set a clear limit — for example, a maximum of 30 or 60 working days per year outside the Netherlands — with differentiation by region (EU versus non-EU).
- Approval process: Require employees to seek prior approval for remote working from abroad. This allows HR to maintain oversight and assess the consequences on a case-by-case basis.
- Country-specific assessment: Not every country carries the same risks. Build a step into the policy whereby the tax, social security, and employment law implications are assessed for each country individually.
- Documentation obligation: Track days spent abroad, apply for A1 certificates where necessary, and retain all relevant correspondence. Documentation is indispensable in the event of an audit.
- Communication to employees: Ensure employees know what is and is not permitted, and what the consequences are of exceeding the established limits.
- Periodic review: Laws and regulations surrounding remote working are changing rapidly. Review the policy at least annually and update it based on new rules or case law.
A good policy is not only a legal safety net, but also a tool for providing employees with clarity. Employees who know the rules can make informed choices about how and where they work.
How Eastwing helps with remote working from abroad
Remote working across borders touches on tax, social security, immigration, and employment law all at once — making it one of the most complex issues in global mobility. At Eastwing, we help HR departments and employers keep this manageable and compliant.
What we can do for you:
- Assessing the tax and social security implications of remote working in specific countries
- Applying for A1 certificates for employees working (temporarily) from abroad
- Advising on the 30% ruling and the impact of remote working on its applicability
- Drafting or reviewing an internal remote working policy for employees working from abroad
- Supporting employees with registration, tax filing, and residence obligations in the country of work
- Training sessions for HR professionals on international mobility and compliance
Would you like to know what the rules are for a specific situation or employee? Get in touch and we will be happy to think it through with you.
Frequently Asked Questions
Does the 183-day threshold apply per calendar year or per consecutive period?
In most tax treaties, the 183-day threshold is calculated over a consecutive period of twelve months, which does not necessarily coincide with the calendar year. Some treaties do use the calendar year as the reference period, while others apply an arbitrary twelve-month window. It is therefore important to consult the specific treaty between the Netherlands and the country of stay, rather than automatically assuming January 1 to December 31.
What if an employee works remotely from multiple countries at the same time — for example, two months in Spain and two months in Portugal?
If an employee works from multiple countries, the tax, social security, and employment law rules must be assessed separately for each country. For social security purposes within the EU, the total working time in the country of residence counts toward the 25% threshold, but for tax purposes, each country is assessed individually to determine whether the threshold for taxing rights has been exceeded. This makes the situation considerably more complex and generally requires advice from an international mobility specialist.
Can an employee handle the tax implications themselves, or is the employer always responsible?
Both the employee and the employer can be held personally liable for non-compliance with the rules in the country of work. The employee is personally responsible for their own tax filing and residence obligations, while the employer bears responsibility for payroll tax, social security contributions, and preventing the creation of a permanent establishment. In practice, it is advisable to explicitly set out the respective responsibilities in both the remote working policy and the employment contract.
Does working remotely from abroad affect the employee's pension accrual?
Yes, this is a risk that is frequently overlooked. If social security liability shifts to the country of work, the employee may temporarily be unable to participate in the Dutch pension system or the employer’s existing pension scheme. Depending on the country, a gap in pension accrual may arise. When remote working extends over a longer period, it is advisable to map out the pension implications alongside the tax and contribution obligations.
What is the first step when an employee indicates they want to work from abroad?
The first step is to establish the country of stay, the intended duration, and the nature of the work. Based on this, it can be determined which tax treaties apply, whether an A1 certificate is required, and whether employment law obligations exist in the country of work. Always address this before departure: correcting the situation after the fact is considerably more difficult and costly than taking the right steps in advance.
Are employees allowed to work remotely from a non-EU country on a tourist visa if they work for a Dutch employer?
In the vast majority of non-EU countries, working on a tourist visa is prohibited — even if the employer and salary are entirely Dutch. Local authorities generally do not care who the work is being performed for: what matters is that economic activity is taking place on their territory. Violations can result in deportation, an entry ban, or fines for both the employee and the employer. Always check the visa conditions of the specific country before an employee travels.
How often should the remote working policy be updated, and why is this so important?
A remote working policy should be reviewed at least once a year, but ideally also following relevant legislative changes or new case law. Regulations surrounding international mobility are evolving rapidly — think of new digital nomad visas, changes in treaty positions, or amendments to the EU coordination regulation on social security. An outdated policy offers no protection in the event of an audit and can give employees a false sense of security.
