Working From Home Abroad: What to Clarify First

The first and most important step: working from home abroad does not exist without your employer’s explicit consent. Your employment contract usually fixes a place of work, and working from abroad, permanently or even temporarily, is not automatically covered by it. Without a green light you risk, in the worst case, a formal warning or more, even if everything works technically.

For the employer this is not a formality, because they share the risk: they must check whether your activity abroad creates reporting, social-security or tax obligations for the company, whether data protection and IT security are maintained, and whether a permanent establishment might be created in certain countries. That is why many firms now have clear rules on who may work remotely, for how long and in which countries.

So ask early and in writing. Clarify concretely for how long, in which country and to what extent remote work is allowed, and who applies for which certificates. A written approval protects both sides. If you do not get consent, that is not a detail to be worked around casually; it is the basic prerequisite without which the remaining questions do not even become relevant.

As soon as you work abroad, the question arises in which country you are covered by social security. Within the EU, the EEA and Switzerland the principle is that you are subject to only one country’s social-security system. For temporary assignments in this area there is the A1 certificate: it confirms that you remain covered in your home country, for example Germany, and is usually applied for by the employer.

In Germany, information and the process around the A1 certificate sit with the German liaison office for health insurance abroad (DVKA) and your health or pension insurer. You should apply for the A1 before departure and carry it with you, because authorities in the destination country may ask for it. Treat this as a concept and first reference point; the exact requirements and deadlines are clarified through the official bodies.

For third countries outside the EU, EEA and Switzerland, the A1 certificate does not apply. Here it depends on whether a social-security agreement exists with the destination country and what it covers. Without such an agreement, you or your employer may have to pay into two systems, or gaps may arise. This is a typical point where professional advice before departure saves you costly surprises.

Around working from home abroad, the "183-day rule" almost always comes up. Important first: this is a concept, not a fixed formula that applies the same everywhere. Simplified, the underlying idea is that a longer stay in a country can have tax consequences there, while short stays are often treated differently. Exactly how depends on the relevant double taxation agreement (DTA) between Germany and the destination country.

A double taxation agreement is a treaty between two states that governs which country may tax your income, so that you do not pay twice. The 183 days are only one of several factors; it also matters, for example, who pays your salary and where your centre of life is. That is why "under 183 days" cannot be turned into a blanket "tax-free abroad".

So treat the 183-day mark solely as a rough reference point, not as a free pass. Which DTA applies, how the days are counted and which reporting duties arise differ from case to case. Reliable information on the agreements is available from the Federal Central Tax Office and the Federal Ministry of Finance; applying them to your specific situation belongs in the hands of a tax adviser.

Many employers have responded to the wish for temporary work abroad with so-called workation policies. These are internal rulebooks that set how many days per year, in which countries and under what conditions you may work remotely from abroad. Stays within the EU are often regulated more simply than in third countries, and there are upper limits so that no tax or social-security thresholds are crossed. Check first whether your employer has such a policy, because it already answers many questions.

For longer stays, several countries have introduced their own residence permits for location-independent workers, often called "digital nomad visas". Examples that come up repeatedly as keywords are Spain, Portugal, Estonia, Croatia or Greece. Whether such a visa exists, which income and evidence requirements apply and how long it is valid, however, changes constantly and differs greatly from country to country. We deliberately name this here only as a keyword, without promising details.

For the specific conditions, rely solely on the official bodies of the destination country, meaning its embassy or immigration authority, and involve your employer. A digital-nomad visa also does not automatically resolve the tax and social-security question; those layers stay separate and must be clarified in addition. A suitable visa is the entry ticket, not the complete solution.

Before you pack your laptop, work through a short checklist. First, your employer’s written consent, stating country, period and scope. Second, sorting out social security, within the EU, EEA and Switzerland usually via the A1 certificate, applied for before departure and carried with you. Third, the tax side, meaning the question of the applicable double taxation agreement and possible reporting duties, if in doubt with a tax adviser.

Fourth come the practical matters: valid residence and visa rules of the destination country, sufficient health and travel insurance cover, data protection and IT security in the home office (such as VPN and encrypted devices as required by your employer), plus a reliable internet connection and a workable time zone for collaboration. Also keep important certificates ready both digitally and on paper.

Fifth, build in buffer. Some certificates and visas need lead time, and rules change. The earlier you involve your employer and, where needed, professional advice, the more relaxed the trip becomes. This checklist does not replace an individual review, but it makes sure you do not overlook the three decisive layers (employment law, social security, tax).

To close, once more plainly: this guide is a general orientation and does not replace tax or legal advice. We have deliberately explained concepts rather than promising specific numbers or deadlines, because these depend on your contract, the destination country and your personal situation, and can change.

Binding information is the domain of official bodies and professionals: your employer for the employment-law consent, the DVKA and your social-security institutions for the A1 certificate, the Federal Central Tax Office and the Federal Ministry of Finance for the double taxation agreements, and the destination country’s embassy for residence and visa questions. For tax questions, a tax adviser is the right point of contact.

In short: use this text to ask the right questions and overlook nothing, but do not make a consequential decision on its basis alone. The small investment in professional advice before departure is far cheaper than a back-payment or a legal problem afterwards.