Cross-border payroll cannot be settled by counting to 183 days. Treaty conditions, the employer behind the work, wage costs, and social security can change where tax and premiums are due. From 1 January 2026, Dutch-German home working has a separate treaty rule. It applies below 35 qualifying working days in a calendar year.
Why this matters
The 183-day rule has three treaty conditions. All three must be met, and the counting period differs by treaty. An employment contract may not settle who the employer is for wage tax. Daily instructions, business benefit, and wage-cost allocation can affect the answer. Wrong payroll treatment can bring corrections, registrations, premium changes, and net-pay disputes. Tax and social security need separate checks. An A1 declaration must match the employee’s actual work pattern.
Example
A Dutch employee works from home in Germany one day each week. The manager tracks only the 183-day total and approves the arrangement. Over a full working year, that pattern will usually exceed 34 qualifying days. The special Dutch-German rule may no longer apply. Payroll must then use the ordinary treaty rules for those workdays. The employer must also check social security separately. The work location, schedule, payroll file, and A1 position should match.
XTROVERSO tips
- Review the arrangement before work starts. Send foreign work requests to payroll and finance before approval. Include the country, planned dates, role, manager, and customer or project.
- Keep one cross-border work record. Record planned and actual locations, workdays, travel dates, employing entity, manager, project, and wage-cost allocation.
- Check the real employer position. Confirm who directs the work, receives the benefit, and carries the wage cost. Do not rely on the contract alone.
- Run separate tax and insurance checks. A tax treaty result does not decide social security. Check the applicable European rules and any required A1 declaration.
- Track Dutch-German home working separately. Count qualifying working days by calendar year. A weekly home-working routine can exceed 34 days well before 183 days.
- Put the full cost into the planning. Include foreign payroll support, registrations, premiums, advice, and correction work when reviewing staff costs and project margins.
We can review your cross-border work arrangement, payroll records, risks, and next steps
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
- Salaris Vanmorgen — Meest verkeerd begrepen payroll-weetje ooit
- Belastingdienst — Tax treaties and the 183-day rule
- Rijksoverheid — Dutch-German tax treaty and cross-border home working
- UWV — Social security when working across borders
- Belastingdienst — Temporary work abroad
- Rijksoverheid — Netherlands-Belgium agreement on home working
- Overheid.nl — Netherlands-Germany treaty record
- Belastingdienst — Payroll Taxes Manual
