Social security and tax implications of cross-border workers working from home

19 July 2022

No consequences for social security until 1 January 2023

Despite the fact that the policy on workers from border regions working from home expired on 1 July 2022, the policy has actually been extended until 1 January 2023. In the week of 13 to 19 June, agreements were made about this at the European Commission level. This means that cross-border workers can work from home in the period from 1 July 2022 to 31 December 2022 without having to be insured in another country. It is not yet known what will apply after 31 December 2022. 

Normal Tax treaty rules from 1 July 2022

The Covid-19 tax policy on the consequences of working from home is based on bilateral agreements between the Netherlands and Belgium, and between the Netherlands and Germany. These agreements ran until 30 June 2022 and will not be extended. From 1 July 2022, the normal tax treaty rules will apply again. The cross-border worker who works from home will then have to pay tax in their country of residence on the wages they receive for work in their country of residence.