Working remotely for a foreign employer

If you live in one country and work from home for an employer in another, three questions arise: where your salary is taxed, whether your home office creates a taxable presence for the employer, and where you pay social security.

Where the salary is taxed

Under tax treaties (Article 15), salary is taxed where the work is physically done — not where the employer is or where the results are used. If you work from home in your country of residence, that country taxes the salary. The employer's country can tax only days you physically work there, and even then the 183-day exemption may apply.

Can your home office create a permanent establishment?

In November 2025 the OECD replaced its Commentary on home offices (Article 5, paragraphs 44.1–44.21):

working from home less than 50% of your working time for the employer (over any 12 months) generally does not make the home a place of business of the employer;
50% or more — it depends on the facts; the key question is whether there is a commercial reason for you to be in that country (for example, meeting clients there, or serving customers in other time zones);
working from home only to keep you as an employee or only to save costs is not a commercial reason.

Several countries disagree with these paragraphs, and the 2021 COVID-19 guidance applied only during the pandemic. Check the position of your treaty partner.

Social security in the EU

You are insured in one country only — as a rule where you work (Regulation 883/2004, Art. 11).
If you work in two or more countries, you are insured in your country of residence if you do a substantial part of your work there (25% or more of working time or pay).
Under the 2023 Framework Agreement, on request you can stay insured in the employer's country if telework from home is less than 50% of your working time — only between signatory countries, not for the self-employed.

Outside the EU, bilateral social security agreements or national law apply.

Common mistakes

Assuming salary is taxed where the employer is.
Assuming an employee's home office can never create a permanent establishment.
Relying on the COVID-19 guidance after the pandemic.
Thinking the tax answer also settles social security.

When to see a professional

You will work 50% or more of the time from abroad, or meet clients in your country of residence.
You work in several countries, or the employer is outside the EU/EEA/Switzerland.
You need a certificate A1 or an exception agreement for social security.

Sources

Sources checked: 10/11/2026. General information, not legal advice. Treaties and national laws can differ from the OECD Model; always check the treaty that applies to you.

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