An employee telecommutes abroad. What about their social security and tax status?

Since 1 July 2023, new social security rules apply to employees who telecommute abroad. 

1.    What are the new rules?

Until recently, those who telework more than 25% for a Belgium-based employer, but do not live in Belgium – so-called 'cross-border teleworkers' – were covered by the social security system of the country of residence. That arrangement became untenable. A new framework agreement on cross-border teleworking offers a solution: the country in which the employer is located (no longer the country in which the employee lives) is responsible for social security when the employee teleworks up to 49%.


2.    When do they apply?

Cross-border teleworkers must meet the following conditions: 

  • They usually perform their work in the Member State of residence and the Member State in which the employer has its registered office; 
  • Their teleworking performance relies on information technologies that ensure connectivity;
  • Self-employed, self-employed in secondary employment, flexi-jobs, etc. are excluded.


3.    What are the application conditions?

  • Both Member States of employment have signed the framework agreement;
  • The employee must work at least 50% of his working time in the Member State in which the employer has its registered office;
  • The employee must telework between 25% and less than 50% of their working hours in their country of residence;
  • The employee must agree. 


4.    What formalities should the employer fulfil?

The employer should submit an A1 application to the Member State in which its registered office is located. This allows him to prove that he is subject to social security in that Member State. In addition, he should comply with other formalities that may apply in the Member State in which the work is carried out. 

5.    Do these principles also apply to taxation?

No. Up to now, the double taxation treaties concluded by Belgium do not provide specific rules for the taxation of teleworkers. As a result, there is still a so-called 'salary split' for a cross-border teleworker. Therefore, employers are well advised to verify the tax and legal obligations that apply in their teleworker(s)’ country of residence.

Want to know more? 

Read our comprehensive article at www.bdo.be, where you find all of the up-to-date information. Or contact the experts in our Tax & Legal team: legal@bdo.be / tax@bdo.be