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employed in DE and home office in EU

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Hello

 

Due to increasing prices (food, fuel, gas, fricking sunflower oil is 500% up), I'm trying to find a way to reduce living costs.

Because on top is the apartment rent, I would like to know legal possibilities to keep a regular employment in Germany, 

without having German address anymore (I would unregister) and be working from home office from another EU country full time.

 

Besides becoming a freelancer (which is risky by itself), what would be other options here?

What should be considered from the employer side and what from employee side?

 

Is anyone already doing the same?

 

I would appreciate any insight.

Thank you

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It is possible to be a regular employee while living in another EU country.  You would have to figure out how the taxes work for that.  I was told that in order to live and work in Germany for an employer in another EU country, the EU employer would have to send the employee the full wages including all the tax and deductions and the employee would have to pay that to the correct authorities.  You would have to figure out how to do this where you live.

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I believe it depends on the local legislation of the country you are moving to.  What LeonG mentioned above is true, in some EU countries you are allowed to live and work for a foreign employer without the need for said employer to be registered in that country.  However, you will need to pay all taxes and social contributions linked to employment in your new country of residence, so your German employer would need to be willing to pay those amounts to you as part of your monthly salary and then be ok with you providing them with records that prove that you are fulfilling all financial obligations linked to your employment situation in the other country.  It is a tough pill to swallow in most companies due to the sensitivity of the case.  I hope that the HR department of your German employer is sympathetic to your situation because you will need them on your side to pull this off.

 

 

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Hello 

Thank you guys, for reply. 

 

Well, this sound rather interesting - to get paid a gross salary in Germany and you pay other contributions  by yourself in another country. Is there any article or even legislation published from German point of view about this ? What I could find was only an option that employee is officially sent by his employer to work in a foreign country for a limited length of time. 

I guess my HR is not that flexible, they said I could work outside Germany only for 20% of my work time (and this is only valid because of Corona). And if I deregister from Germany (abmelden) I must cancel the work contract. 

Any feedback to this?

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You are always considered resident somewhere, and it's here you must pay taxes. Usually this is the place in which you live, work or is otherwise the centre of your life.

Companies can have problems if they employ someone in a foreign country where they don't already have an office which handles the local taxation.

Say I employ you in Germany and you move to Hungary, leaving Germany. What social and company law governs the employment regulation? German or Hungarian? I can guarantee it's different again if you decided to live in Malta. So most companies just say bye and hire again a local person, if they can not do some sort of internal transfer to the office they already have in that foreign country.

 

Problems start to happen at the latest 6 months plus into your new residency, but depending on the country can be much sooner. The company could be classes as now 'operating' in the new country and subject to various company taxes and social taxes in that country, for just one employee.

 

Lets say you move from Germany to Hungary (or wherever) the cost of electricity and gas will go down, mainly as Germany has one of the highest rates. Likely the rent will also be much smaller, so yes you save. However, your good German salary turns into a likely not so good local salary. As an employee you are largely stuck with working within the country in which you are hired.

 

LeonG mentioned something called secondment, where a company sends an employee on a temporary assignment for a number of years and covers most of the costs. A company I know who were expanding into Asia did just that and the offer for the employee was actually very good. Of course, that is a high skill role, and you don't say what type of job your currently have. In the end you are expected to return, but I would guess a good few people who took such an option, never do.

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