Tax I have been offered a one-year contract in another EU country. Will I have to pay taxes there on my salary?YES, in all probability. That means that it will not only tax you on what you earn working there, but it will also have the right to do so on your worldwide income. You would have to find out if that country will consider you a tax resident and what are the applicable tax rates and deductions.
- I got a job in Belgium, but I plan to continue living in France and cross the border every day. Where will I pay taxes?. Now, as a tax resident in France, this is where you will have to declare and pay taxes on your worldwide income, including your Belgian salary. If so, you may only have to pay tax relief service. For clarification of the situation, you can also contact the Belgian and French tax authorities or the cross-border association of European employment services in your region.
salary is taxed
- I am a cross-border worker. My country of residence considers me a tax resident. Can I deduct the contributions I make to a pension plan in my country of employment?DEPENDS. If you have income from working in a country, that country will probably have to grant you all the tax relief on earned income that it grants to its residents. If they can, you can also deduct your contributions to pension plans, regardless of the country in which you have the plan. But if you can deduct these contributions in your country of employment, you will not be able to do so in your country of residence. Equal treatment rules oblige your country of employment and your country of residence to treat you the same as residents and people employed in their territory, but not to treat you better.
- I am a cross-border worker and I pay taxes in the country where I work. That depends on whether you have other income in the country where you live and the tax relief regulations that apply to residents of the country where you work. Check with your tax agency. A European employment advisor will also be able to give you basic information about the applicable regulations.
- In general, most EU countries give different tax treatments to residents and non-residents. Thus, for example, if you contribute to a complementary pension plan in the country where you live, you should be able to deduct the contributions in the country where you work… as long as the latter allows you to deduct contributions to this type of plan in its own territory.
- In fact, some countries treat cross-border workers as fictitious residents under certain conditions, which vary from country to country. If this is your case, you can benefit from the same tax relief and deductions as residents of the country where you work. Find out about the conditions before starting to work as a cross-border worker. Also, consult the jurisprudence of the courts in similar situations. If you have had tax breaks and benefits in the country where you work, it is very likely that you will not have them in the country where you live.
Fictitious residents under certain
- The company I work for in France is going to temporarily relocate me to the Netherlands. Where will I pay taxes? Your tax residence and worldwide taxable income are likely to remain exclusively in France, as long as:
- the posting does not last more than 6 months
- Most tax agreements include a clause to resolve situations in which both countries consider you a resident so that you are only resident in Attention: double taxation agreements provide different rules for workers in public administrations. In any case, to clear up doubts, consult the tax agreement between both countries —in your case, France and the Netherlands— or contact the national tax administrations.
Different rules for workers
- . Is it so? NOT NECESSARILY. It is likely that you will become a tax resident in country B if you stay in its territory for more than 6 months of a tax year. Your tax situation will depend on the laws of countries A and B and the double taxation agreement they may have signed. This is just a summary of the most common rules. If you want a more specific answer for your situation, consult the corresponding tax agreement or contact the national tax administrations or a European employment adviser.
National tax administrations
- This year my company posted me for four months in another EU country. Where will I have to pay income tax? Since the posting lasted less than 6 months, it is likely that you have continued to pay taxes in your country of origin (the country where you usually work). As a general rule, you would not have to pay income tax in the host country, unless:
- the company has a permanent office in that country, or
- But, in that case, it must be possible to request a refund in the host country in accordance with the double taxation agreement between the two countries. Attention: double taxation agreements provide different rules for workers in public administrations. This is just a summary of the most common rules. If you want a more specific answer for your situation, consult the corresponding tax agreement or contact the national tax administrations or a European employment adviser.
- I have been working in another country for a year in a situation of temporary displacement and now they tell me that I have to pay income tax there. Can I take advantage of the tax relief/reductions of that country? In that case, they must offer you the same allowances and deductions as their nationals, even if they refer to expenses incurred outside their territory.
Advantages of the tax relief/reductions
- I am a civil servant in one EU country but I work in another. Where do I pay income tax? It depends on the bilateral tax agreement that exists between the country where you are a civil servant (country of origin) and where you work (host country). Most EU countries have opted for a rule where officials only pay taxes in the country of origin.
EU country but I work
- or you are a citizen of the host country or
- you have not moved there exclusively to work as a civil servant. This is just a summary of the most common standard. There may be exceptions according to some international agreements. For more information, contact your agency or a European employment advisor and consult the corresponding bilateral agreement.
Moved there exclusively
- I am a civil servant and currently working abroad. For example:
- Depending on the problem, in some cases, you can also contact the EU Citizen Help Services.
Depending on the problem
- If I transfer my unemployment benefits to another country and stay there for more than three months, will I have to pay taxes in that country? Maybe not: depending on the double taxation agreement between your country of habitual residence and the country where you move, you may only have to pay taxes in the country that pays you the benefit. For more detailed guidance on international issues, go to your agency and consult the bilateral agreement between both countries.
spend five months in another
- Do I have to pay income in that country? The EU does not have a general regulation on cross-border pensions. There are only national regulations and agreements. In most cases, you only have to pay income in the country where you have your habitual residence. Some countries may consider you a resident —and therefore a taxable person— if you spend five months a year in their territory. Whether or not you are a resident of your host country, if you receive a pension from the public sector (for having been a civil servant), in principle you only pay on it in the country that pays it to you. This is just a summary of the most common rule and there may be exceptions in some international conventions. Consult the corresponding agency or agencies.
Consult the corresponding
- NO. The European principle of equal treatment also applies to taxes on dividends, interest, and other income from transferable securities.
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