Since 1 January 2026, home working between the Netherlands and Germany has a 34-day income-tax rule. Social security uses a separate test. Home working in Belgium can also affect a Dutch employer’s taxable presence. These rules can change payroll, insurance and company tax exposure.
Why this matters
In 2024, 91,900 people working in the Netherlands lived in Belgium or Germany. In Limburg, this is a regular recruitment issue. For Germany, a home-working day of more than 30 minutes may count. After 34 days, Germany taxes wages for every qualifying home-working day. Social security looks at total working time and the PD A1. Belgium’s 50% handrail concerns permanent establishment, not payroll. Payroll records must show where the employee worked.
Example
A Dutch company employs a specialist who lives in Aachen. Her contract allows one home-working day each week. A day with more than 30 minutes of home working can count towards the German 34-day limit. The 35th qualifying day changes the tax treatment for every qualifying home-working day. She may still meet the social-security test. That does not settle income tax. Payroll needs the dates, work locations and a valid PD A1 where the framework applies.
XTROVERSO tips
- List every cross-border employee. Identify staff living in Belgium or Germany who work for a Dutch entity. Include arrangements described as occasional.
- Keep one work-location record. Record the country and date for each working day. Add duration when the 30-minute test may apply. Calendars, timesheets, HR files and payroll instructions must match.
- Run separate checks. Do not use Germany’s 34-day tax limit for social security. Do not treat Belgium’s 50% permanent-establishment handrail as a payroll rule.
- Check the PD A1. Confirm whether the employee qualifies for the telework framework. Check that the request was made and the PD A1 remains valid.
- Review Belgian roles closely. Check home-working time and the employee’s authority. Contract negotiations, customer work and company representation can affect the permanent-establishment review.
- Set owners and review dates. Name who approves the work pattern, updates payroll and checks changes. Review the record during the year instead of waiting for year-end.
Need help aligning work-location records, payroll and cross-border obligations? Our team can review the practical gaps with you
The data, sourcing, and analysis behind this article were conducted by Linda Pavan. AI was not used to identify sources, build the factual basis, or produce the analytical judgment contained here. AI was used only as a drafting aid. The final English text was personally reviewed, edited, and approved by Linda Pavan before publication.
References
- Belastingdienst — German residents with Dutch income
- Belastingdienst — Dutch residents with German income
- Rijksoverheid — Framework Agreement on cross-border telework
- Rijksoverheid — Belgian home offices and permanent establishment
- CBS — Cross-border workers in the Netherlands
- Rijksoverheid — Benelux policy work on cross-border telework
